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Property Law

Buying Land

Other Nationals cannot purchase lands in Sri Lanka as it is prohibited from the 2013 budget. Also the local low suggests that other nationals can only lease out a land or property for 99 years maximum. Organizations which are owned and controlled by other nationals will no longer need to 15% land tax.

VAT on Apartments

Ever since 1st of December 2019, the local government has abolished the 15% VAT Tax on anyone who is purchasing an Apartment. This VAT tax of 15% is no longer required to be paid for the local government as it is abolished as part of the Tax Relief Program.

Taxes for Property

The government has implemented a 1% Stamp Duty fee for leasing land up to 99 years. Also, if buying a property, there will be a 3% Stamp Duty on first LKR 100,000 and 4% thereafter. There are also other expenses when preparing the documents that lawyer will charge 2-3% for preparing the documents.

Taxes for Landlords

The government has implemented a 1% Stamp Duty for anyone leasing out a property to another national or local when the rent is collected monthly or yearly. The government imposed VAT remains at 15% if the lease is to a VAT Registered person, other than for residential premises. Furthermore, the overall sale of land or buildings other than residential premises will also be accountable to VAT at 15% on the overall value.

Capital Gains Tax (CGT)

The government has also imposed a Capital Gains Tax of 10% on the gains (profits) and it was imposed on 1st of April 2018. It is imposed regardless of the timeline of ownership and it will be at 10% rate. This tax will be imposed on both foreigners and locals. For any assets owned or bought prior to 1st of April 2018, then the overall worth of that asset will be calculated as at 30th September 2017. Any asset worth of less than Rs. 50,000 will not be part of Capital Gains Tax and if the property being sold has been your principle place of residence for 2 of the last 3 years, and then Capital Gains Tax will not be applicable. If you relinquish residency in your country and become a resident in Sri Lanka, then Capital Gains Tax will need to be paid on the investment property in your former country.

Rules and Regulations for Expats and Foreigners

Other nationals can purchase apartments; moreover, lands cannot be acquired on ownership but it can be leased up to 99 years. An apartment is defined as a group of residences with shared facilities. The condo can be bought given that; the whole worth will be paid forthright through an internal remote settlement before the execution of the pertinent deed of move. Privately owned businesses with lion's share remote property will be permitted to rent arrive on a long haul premise.

In any case, such organizations ought to have contributed in any event LKR 250 million barring the estimation of land giving work to in any event 150 individuals, and have kept up this for in any event three years. Any privately owned business with minority remote proprietorship can purchase or rent property in Sri Lanka. Additionally open organizations with over half remote proprietorship are presently allowed to purchase ardent property.

Residency Visas

A residency visa can't be acquired by just purchasing a property. Be that as it may, Foreigners who contribute over USD 250,000 will be permitted living arrangement visa in Sri Lanka under the Resident Guest Scheme Visa program and anybody more than 55 years of age can get a 2-year sustainable visa under the My Dream Home Visa Program by storing just USD 15,000.

Mortgage/Loan Policy for Foreigners

Other nationals can't even now get a home loan from nearby banks; anyway double residents and non-occupant Sri Lankans can. If you don't mind Contact us on the off chance that you might want to get any help with applying for a home loan.

Moving money in and out of the country

In the event that an outside occupant needs to buy a property, at that point the cash should be directed in to the nation through an special SIA (Securities Investment Account) - which are currently called Inward Investment Accounts (IIAs), held at a neighborhood bank. When the property has been sold, the cash can be taken out (in addition to any increases) by means of a similar record in the money that the cash was stored in. On the off chance that you right now claim a property where the cash hasn't been brought by means of a SIA account (for example acquired, purchased while a resident of Sri Lanka), at that point there's a yearly utmost of $20,000 when removing the cash from the nation. You could in any case take the cash out without a moment's delay; if the wellspring of the cash can be demonstrated to the bank and Central Bank (this entire procedure will take a couple of months to finish).