Law applicable for Foreigners - Buying Properties in Srilanka

Law applicable for Foreigners

Sale of land to foreigners has been prohibited from the 2013 budget. Foreigners
can buy land if their investment in the project is over $10 million. Alternatively
they can lease the land (for up to 99 years).

Some Additional Information Foreigner can owns a property
1.  Most of the Tax free for the foreigners if the investment is done in the name
of a Sri Lankan citizen.
2.  Certain BOI  approved projects  for  foreign  investors.
*A project build more than 100 houses
*Construction and  operation of a hospital or a hotel more than $ 10 million
*Infrastructure projects with an investment of more than $50 million
*Project with more than $ 1 million by a Company who manufacture and
export.
*Any condominium unit on or above the fourth floor  provided that the value
of such unit is met by inward remittances of foreign currency
3.  Buying shares of a company. Less than 50% only.

Note on taxes
All transfer costs (Lawyer, Stamp fee, and registration) are calculated on the
grounds of the selling/buying price that is written in the contract.
Since February 2013, 5% stamp duty applicable.

Lawyer Fee 1 - 4% (mostly 2%) or a fixed amount that depends on the lawyer and
usually 3-5% agent's fee (Broker) to be paid by the buyer or seller.

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