No Tax Exemptions for $20 Billion Rasmalé Project, Minister Says

The government’s $20 billion development agreement with UAE-based Eagle Hills does not include any tax holidays or exemptions, Housing Minister Dr. Abdulla Muththalib has said, according to Mihaaru.

The agreement, signed in Abu Dhabi, covers a major development project in Rasmalé that will include a waterfront marina, real estate developments and other commercial components.

Muththalib signed the agreement on behalf of the Maldivian government, while Eagle Hills Chairman Mohamed Alabbar represented the company.

“This project is agreed to proceed without any tax holidays or tax exemptions,” Muththalib told Mihaaru, adding that all activities conducted in Rasmalé would be taxed in accordance with Maldivian law.

According to details reported by Mihaaru, payments to contractors and suppliers will be processed through accounts opened at banks licensed in the Maldives.

Funds generated from the sale of units will also be processed through escrow accounts maintained in the country. The arrangements are expected to be governed by the proposed Real Estate Act, which is being prepared for submission.

Muththalib said these requirements would ensure that money generated through the development circulates within the Maldivian banking system.

The government will receive 10 percent of the revenue generated from the sale of commercially developed properties, Mihaaru reported. A four percent registration fee will also be collected from each real estate transaction conducted during the project’s first and second phases.

Including projected tax income, the development is expected to generate more than $11 billion for the state budget, according to figures disclosed by the minister.

Muththalib also said ownership of the land would remain exclusively with the state, with investors receiving leasehold rights only.

The project will be implemented within the limits of the Constitution and existing laws and will not require any constitutional amendments, he said.

Eagle Hills is a private real estate investment and development company headquartered in Abu Dhabi. It has investments in more than 18 countries and a portfolio that includes 45 hotels.