Lease Extension: Development under the 15th Amendment to the Tourism Act

The 13th Amendment to the Tourism Act that came into effect on 29 August 2024, brought in certain changes to the fees pertaining to lease extension of tourist resort lands, islands and lagoons (read here).

The discounts to lease extension fees provided under the 13th Amendment expired in February 2025.

With revised lease extension fee rates along with new payment models, the 15th Amendment to the Tourism Act came into effect on 19 March 2025.

Key Highlights:

Revised fee structure for extensions shorter than 50 years

For lease extensions shorter than 50 years, you may opt to pay US$ 100,000 for per year of extension, if you can pay the total lease extension fee within 6 months from 19 March 2025. Otherwise, the fee will be doubled to US$ 200,000 for per year of extension.

Revised fee structure for extensions for 99 years

For lease extensions for 99 years, you may opt to make an application within the 6- month window and be eligible for one of the below payment models:

1- payment of US$ 5,000,000 within 6 months from 19 March 2025; 

2- payment of US$ 1,500,00 within 6 months from 19 March 2025, and payment of US$ 4,000,000 within 12 months (in installments) from the date of application for lease extension which will be regulated as per the regulations to be introduced; or

3- payment of US$ 1,500,00 within 6 months from 19 March 2025, and payment of US$ 4,500,000 within 24 months (in installments) from the date of application for lease extension which will be regulated as per the regulations to be introduced.

Unlike the 13th Amendment, the 15th Amendment gives the option to pay in installments the fee in relation to lease extensions for 99 years, as explained above. This installment payment plan is applicable only if a minimum of US$ 1,500,000 is paid during the 6-month window.  

For the lease extension to be granted, all payments should be paid and cleared. If you miss the payments, MOT may invalidate your lease extension application and set off the amount paid so far towards the extension against the lease rent.

If you choose to extend the lease to 99 years after the 6-month period, then it will be subject to the original fee of US$ 10,000,000.

Extension of lease for 20 or 25 years

This amendment also gives you the option to extend the lease for another 20 or 25 years, instead of directly extending the lease to 99 years.

This option is only available for applications made within 6 months from 19 March 2025 and the relevant fees being paid during that 6-month window as well.

For a 20-year extension, the fee is US$ 2,500,00, and for a 25-year extension, the fee is US$ 3,000,000.

Photo: Courtesy of Mihaaru