Maldives Green Tax, TGST & Service Charge: What a Guesthouse Really Costs

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The short version

If you've been browsing guesthouses on local islands and thinking "wait, US$60 a night in the Maldives?", you're not wrong, but you're not seeing the whole bill either. Three things usually get added on top of the room rate:

• 17% TGST (the tourism version of GST)
• A service charge, usually 10%
• Green Tax, a flat US$6 per person per night at small local-island guesthouses

Some booking sites roll these into the price you see. Lots don't, or only show some of them until the last screen. None of it is a scam, it's just how pricing works here, but it catches people out every week.

A worked example

Say you find a double room on Maafushi for US$60 a night, and there are two of you. Here's roughly how that becomes the real number:

So that US$60 room is closer to US$90 a night for a couple. Over a week that's about US$200 more than you might have budgeted. Still way cheaper than a resort, but worth knowing before you book.

TGST (17%)

TGST is the Tourism Goods and Services Tax. MIRA, the Maldives tax authority, raised it from 16% to 17% on 1 July 2025. It applies to stuff sold by tourist businesses: guesthouses, hotels, resorts, dive centres and spas on those properties, travel agencies, and domestic flights sold to foreigners.

What it usually doesn't touch: a plate of fried rice at a local café that isn't a tourist establishment. Those fall under the general GST rate of 8% (if they charge GST at all), which is one more reason eating in the village is cheaper than eating at your guesthouse.

Service charge (10%)

Most guesthouses and tourist restaurants add a 10% service charge. The bit people miss: MIRA treats the service charge as part of the taxable price, so the 17% TGST gets calculated on the room plus the service charge. That's why the example above taxes US$66, not US$60.

Green Tax

Green Tax is a flat charge per person, per night. It doubled on 1 January 2025. MIRA's current rates:

Kids under two at check-in are exempt. Everyone else pays the same rate. It's paid in US dollars, and most guesthouses just add it to your bill at checkout.

This is one of the quieter reasons local islands are good value: a couple pays US$84 Green Tax for a week at a small guesthouse, versus US$168 at a resort.

Airport fees (you've probably already paid them)

Since 1 December 2024, foreign passengers flying out in economy pay a US$50 departure tax plus a US$50 airport development fee. That sounds scary, but on normal scheduled flights it's collected through your airline ticket, so you won't be asked for cash at the airport. It's just part of why flights out of Malé look pricey. Business and first class pay more.

How to check a price before you book

1. Look for words like "taxes and fees included" or a separate line for "Green Tax" on the final booking screen.
2. If you're booking direct, just ask: "Is this price including TGST, service charge and Green Tax?" Guesthouse owners get asked this all the time.
3. Ask whether transfers and breakfast are in there too. Those move the real cost more than the room rate does.
4. Compare totals, not headline prices. A US$70 room with everything included can beat a US$55 room with everything added.

Want the full daily picture, with food, boats and trips? See what a budget day actually costs. Planning the cheapest months? Our monsoon season guide covers when rates drop.