How to buy a property in Sri Lanka as a foreigner?

Looking forward to buy a property in Sri Lanka as a foreigner? Check if these information about property in Sri Lanka for foreigners will be helpful for you.

RULES AND REGULATIONS FOR FOREIGNERS TO BUY PROPERTY IN SRI LANKA

Here find a little guidance for you if you are interested to buying a property in Sri Lanka as a foreigner. What are the rules and regulation that will be applicable for you if you are a foreigner? Let’s refer the processes that you have to proceed as follows.

At the same time the mentioned processes and regulation can be effected depending on the states publishing by the Sri Lanka government.

Foreigners have to adhere to certain rules and regulation when they imply to buy a property in Sri Lanka. If you are a foreigner you cannot purchase a property to owe it permanently. However you can lease a property for 99 years.

If you are having a private company with a lesser number of foreign staff still can lease a property in Sri Lanka while the foreign companies with majority of foreign holding also can lease the properties on long time purpose yet they must invest at least 250 million rupees excluding the land providing employment of at least 150 of workforces for at least 3 years of continuation.

If you are looking into an apartment you can purchase it from ground level up. If you are looking into a building with series of apartment or houses using by individuals you have to pay the entire value beforehand via a private foreign remittance before the execution of proceeding the relevant transfer.

By leasing a property, via an inheriting, as a gift from parents, buying an apartment or a condominium, by obtaining Dual citizenship you will be getting options to get into the property market on Sri Lanka as a foreigner.

BUYING LAND
As per the prevailing laws and regulations of Sri Lanka selling a land to foreigners are not allowed. Yet, you are permitted to get a land on leasing basis up to 99 years.

However foreigners or companies those have the ownership to foreigners more than 50% are released from paying the 15% of the land tax from the year of 2016 as per the amendment of RESTRICTIONS ON ALIENATION issued on 2nd September 2016.

BUYING HOUSE OR HOTEL
Foreigners are not allowed to own a house or hotel where they are only permitted to lease the particular property for 99 years of leasing time.

If you are planning to buy a house or hotel in Sri Lanka you are strictly requested to follow the relevant rules and regulations.

If you are looking for apartment you can buy it the premise from ground flow onwards yet this should not be on permeant basis.

Crystal Construction can assist you on this matter of get done your requirement without going through the complicated processes.

TAXES
There are few taxes will be applying in purchasing the properties of Sri Lanka. The taxes related to property will be a 15% VAT Tax for anyone who is purchasing an apartment from the day valid from 1st April 2018. Regardless the local or foreigners this is usually applied for everyone who purchase apartments.

In addition for 99 years for leasing land up there is a 1% Stamp Duty. When you are buying a property, the Stamp Duty will be 3% on first 100000 and there onwards it will be 4%. For lawyers you have to pay 2-3% for their charge to prepare the documents.

There is also a tax goes as Capital Gains Tax (CGT) that will apply 10% from the profit as effected from 1st April 2018.  This will be a flat rate of 10% irrespective of the timeframe of the ownership. This tax also will be applicable for both locals and foreigners.

VISA
Under the Resident Scheme Visa Program a foreigner who is investing more than USD 250000 allowed to get the residence visa in Sri Lanka whereas just applying a property will not make you eligible to get the residence visa.

An investment of USD 300000 and above will grant you residence visa for 5 years while USD 500000 of investment will permit you to get the residence visa for 10 years.

If you are 55 years and above with an investment of USD 15000 will allow you renewable visa for 2 years under My Dream Home visa.

LOAN
Foreigners cannot get loans from local banks while the duel citizens and non-resident Sri Lankan can get loans.

GETTING MONEY INTO SRI LANKA AND SENDING OUT FROM SRI LANKA
At local banks in Sri Lanka foreigners can move the money into Sri Lanka and moving out from Sri Lanka via a special Securities Investment Account to purchase a property in Sri Lanka.  This calling inward Investment Accounts.

Once the property has been sold you can take out the money including the profit through the same account in the same currency that you used to make the deposit. Please check with us for more information learn about the moving money in and out from Sri Lanka.

We have listed here few guidelines to give you a basic insight about property in Sri Lanka available for foreigners.

Contact your most trusted construction company in Sri Lanka Crystal Construction to learn more about how to get a property in Sri Lanka and we will more than happy to help you to get your requirement done easily as per the prevailing regulations in Sri Lanka.

FREQUENTLY ASKED QUESTIONS ON PROPERTY IN SRI LANKA FOR FOREIGNERS
Can you buy property in Sri Lanka as a foreigner?
Yes. You can buy properties in Sri Lanka and relevant taxes will be applicable when you buying the properties in Sri Lanka.

Can a non-citizen own land in Sri Lanka?
Yes there are several ways for you to buy a land in Sri Lanka as a non-citizen but you may have to adhere yourself for considerable regulations.

Can Expats buy land in Sri Lanka?
As per the prevailing regulations expats can buy properties and can lease the lands in Sri Lanka where they are also required to pay the relevant taxes.

Where is the best place to live in Sri Lanka?
Sri Lanka offers a great diversity from modified towns to rural villages whereas you will be found spectacular beaches to mountain heights in greenly highlands. It is just the choice you have to make what would be the most appealing to you.

Does Sri Lanka allow dual citizenship?
Yes there are possibilities for dual citizenship in Sri Lanka, yet the duel citizenships are granted as per the requirements of the Citizenship Acts accordingly.

Source: https://www.crystalconstruction.lk/blog/property-in-sri-lanka-for-foreigners/