State earns MVR 994 million from resort lease extensions

The Maldivian state collected MVR 994 million in revenue from resort lease period extensions last year. 

According to statistics released by the Maldives Inland Revenue Authority (MIRA), the revenue generated from lease extension fees saw a significant 30 percent increase compared to the previous year, when the state collected MVR 307 million.

The Tourism Act amendment from March 2024, which introduced significant financial incentives for resorts that pay their extension fees early, is largely responsible for this increase in revenue. 

For a one-time payment of USD 5 million, islands or lagoons leased for tourism may be extended by an extra 49 years under the new regulations, as long as the payment is made within six months of the amendment's effective date. Smaller extensions were also encouraged; if paid in full within the same time frame, a 20-year extension would cost USD 2.5 million and a 25-year extension would cost USD 3 million.

However, the cost of these extensions doubles for those who wait. Under the law, if a resort applies to extend its lease by 49 years after the initial six-month grace period, the required one-time fee increases to USD 10 million. 

Previously, the law required resorts to pay USD 100,000 for every year extended if paid within six months, or USD 200,000 per year if the payment period exceeded six months.

The revenue generated from these lease extensions accounted for 3 percent of the state's total revenue last year. 

In 2025, the state collected a total of MVR 26 billion in revenue, of which USD 1.1 billion was received in foreign currency.