Buy Sri Lankan Lands and Proprieties for Foreigners

Buy Sri Lankan Lands and Proprieties for Foreigners

Foreigners can buy Sri Lankan proprieties, apartments / condominiums from ground level up, however lands cannot be purchased on freehold and can only be leased up to 99 years. A condominium is defining as a group of residences with shared facilities. The condominiums can be purchase provided that, the entire value shall be paid upfront through an inward foreign remittance prior to the execution of the relevant deed of transfer.

Any private company with minority foreign ownership can buy or lease property in Sri Lanka.

Under the current law, a foreigner can get in to the property market using the following options:

a)   By leasing the property
b)   By inheriting
c)   By a gift from parents
d)   Part of a private company with a local shareholding of 50% or above
e)   Buy an apartment / condominium (any floor)
f)   By obtaining Dual Citizenship

Private companies with majority foreign holdings will be allow to lease land on a long-term basis. However, such companies should have invested at least 250 million rupees excluding the value of land providing employment to at least 150 people, and have maintained this for at least three years.

Public companies with over 50% foreign ownership will be permitted to buy immovable property.

Buying land

Sale of land to foreigners has prohibite from the 2013 budget. Land can only be lease out for a max of 99 years. Foreigners or companies (with more than 50% foreign ownership) no longer need to pay the 15% land tax from 1st Jan 2016

 

Taxes for Property

There will be a 15% VAT Tax on anyone buying an Apartment after 1st of April 2018 (possibly for apartments launched after this date). This applies to both locals and foreigners. There is a 1% Stamp Duty for leasing land up to 99 years.

If buying a property, there will be a 3% Stamp Duty on first 100,000 and 4% thereafter. A lawyer will typically charge 2-3% for preparing the documents.

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