Cost of Living

The Maldives is more expensive than most South Asian countries due to its near-total dependence on imports — 90% of food and consumer goods arrive by sea. However, for expats working in the tourism sector with provided accommodation and meals, the effective cost of living drops dramatically. For those renting independently in Malé or Hulhumalé, expect to spend $1,500–$2,800/month for a comfortable single expat lifestyle.

Rent is the largest expense for expats living independently in the Maldives. Malé is more expensive for smaller, older apartments, while Hulhumalé offers newer, more spacious options at slightly lower prices. Resort workers typically have accommodation provided as part of their employment package — a significant financial advantage.

The Maldivian banking system is straightforward but limited compared to major financial centers. US dollars are widely accepted alongside the Rufiyaa, particularly in tourist areas and resorts. Opening a local bank account requires a work visa or employer sponsorship. International transfer services like Wise and Revolut are increasingly used by expats.

The Maldives has a relatively favorable personal tax environment. There is no personal income tax on the first MVR 60,000/year (~$3,900). Above that threshold, a progressive income tax applies. The GST (Goods and Services Tax) is 8% on general goods and 17% on tourism-related goods and services as of July 2025. There is no capital gains tax, inheritance tax, or wealth tax.

Moving money in and out of the Maldives is straightforward but carries some costs. Foreign workers face a 3% remittance tax on money sent abroad, which is a significant consideration when planning your finances. International transfer services are more cost-effective than traditional bank wires.