The Real Estate Business Bill allows tourism facilities to be developed and operated within integrated real estate zones.
Chapter 76 of the bill, introduced by the government in Parliament today, states that separate tourism facilities can be established on islands or in lagoons designated as integrated real estate zones.
The operation of these facilities will be governed by the Tourism Act and its regulations rather than the Real Estate Act.
Any resort, hotel or other tourism facility established within a zone must obtain the necessary operating licenses and permits in accordance with standards set by the Ministry of Tourism.
Under Chapter 77, the standards prescribed by the Tourism Act will also apply to tourist safety and security at facilities providing tourism services within the zones. Only provisions of the tourism legislation and regulations relating to tourist safety and service quality will apply, while other property transactions within the zones will remain subject to the Real Estate Act.
The bill prohibits developments and businesses operating or occupying property within the zones from importing, selling or using alcohol, alcoholic beverages, pork or pork products.
Article 81 classifies businesses operating within an integrated real estate zone as providers of tourism-sector goods and services for the purposes of the Value Added Tax Act. Their transactions will therefore be subject to the tourism sector VAT rate.
Under the proposed legislation, an integrated real estate zone may be leased to a master developer for up to 99 years. Leasehold rights to individual properties within the zone may also be transferred through a surrender and re-grant model for a maximum of 99 years.
The bill also prohibits the sale, rental or transfer of property within the zones to people barred from entering the Maldives under the Immigration Act, as well as individuals facing proceedings in international courts or subject to arrest warrants issued by such courts.
Businesses and activities expressly prohibited under Islamic Sharia will also be barred from operating within the zones.
