President Dr Mohamed Muizzu has ratified the First Amendment to the Special Economic Zone (SEZ) Act (Act No. 24/2014), following its approval by the 20th People’s Majlis held on 5th November 2025. The amendment introduces a new investment category, Sustainable Township, aimed at attracting large-scale tourism and real estate investments that support long-term national development.
Under the revised Act, Sustainable Township status applies only to projects above USD 500 million. Incentives offered under this category are targeted and time-bound, including reduced income tax rates of 5 percent for the first 10 years and 10 percent for the next 10 years. A real estate transfer tax is also introduced, starting at 1 percent and rising to 4 percent by the third transaction. All other taxes, including Green Tax, GST, land lease rent, and sector fees, remain payable.
To qualify, developers must commit to delivering key infrastructure aligned with national priorities, such as world-class education facility to support hospitality training and skills development; hospital with technology-enabled medical services, and agriculture or aquaculture components that strengthen food security.
The amendment enhances transparency by introducing clear eligibility criteria for projects seeking Sustainable Township designation. All investors are subject to the same rules, eliminating discretionary decision-making and reinforcing a predictable environment for investment. Rather than offering project-specific concessions, the Government has adopted a long-term policy that promotes innovation, sustainability, and tangible national impact.
As a key pillar of Maldives Vision 2040, the reform supports economic diversification and lays the foundation for a modern, resilient, and sustainability-focused economy. The initiative positions the Maldives to lead the next era of global tourism through self-sufficiency, innovation, and strategic national development.
