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leasing and holiday letting


#1  2011-02-07 14:34:38

mike507
New member
From: london
Registered: 2011-02-04
Posts: 4

leasing and holiday letting

Hello,
I am coming over in Autumn to investigate finding a long term leasing of a older colonial style property, maybe for restoration and then hopefully doing a little business renting rooms or chalets. Only to allow myself to live there as much as I can and to upkeep the place. I don't intend to get rich! my intention is that I want to have a place in the tropics to enjoy the lifestyle, and Sri Lanka looks ideal for me, beautiful safe and nice people.
My question is this: I have recently read an article by a Sri Lankan saying that a foreigner can only do business if he goes through a difficult process with the BOI investigation board and that it is not worth it! Foreigners cannot work or earn money.
Is this true? Is it not possible to do a small holiday rental business without all this hassle? Do foreigners living there rent out sometimes?
Thanks for listening.
Mike.




 
 
 
 

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#2  2011-02-08 05:55:36

Yud
ViP
Yud
From: Sydney
Registered: 2010-11-08
Posts: 7025

Re: leasing and holiday letting

Welcome on Expat Blog Mike smile

I hope that other members will bring their input to your discussion soon.

Regards




 
 
 
 
 
 
 
 
 
 
 

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#3  2011-02-08 19:57:07

mike507
New member
From: london
Registered: 2011-02-04
Posts: 4

Re: leasing and holiday letting

Thank you Yud. Can't wait to come visit your beautiful Island in the Autumn!
Mike




 
 
 
 

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#4  2011-02-22 06:06:59

Rayan268
New member
From: Colombo
Registered: 2009-12-22
Posts: 6

Re: leasing and holiday letting

Dear Mike
I saw your request,to be frank big investements always you have to go for BOI approval so that you do not need to pay tax for 5-7 years.However if you are looking a small scale business ofcourse you do not need to obtain BOI approval and there are other local methods where you can start up own business freely.My advice is BOI approval is more vaible for big investments so its better you follow the local method and start your business.

Thanks




 
 
 

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#5  2011-08-03 19:26:46

Adam from Perth
Member
From: Colombo
Registered: 2011-08-01
Posts: 13

Re: leasing and holiday letting

Hi Mike,

Sri Lanka is definitely the best place to live in this region of the world.

I have looked into properties myself so I am familiar with the situation. I visited a few colonial bungalows for sale. To be honest they are quite pricey and you can expect to pay over $500,000 as a minimum to purchase. Anything under that would be severely run down. The good ones I saw still needed some work done to get them up to standard, but in general they have large lands with beautifully kept gardens.

I dont know about the long-term lease option, but there would surely be some people who would be interested in that in my opinion. There was one bungalow in particular which was magnificent but the owners wouldnt sell it, so I cant see why they wouldnt lease it and get someone to fix it up for them.

The government does require licenses for large operations, so I would think a small scale operation would be fine. Most bungalows here are rented out when the owners arent there and they dont require a license. Technically you are not allowed to work here, but I dont think there would be an issue if you just lived in it and your "staff" operated it. There are a few ways to get around any issues. From what I have heard, avoid the BOI at all costs. Especially since this is a small project.

PM me if you want some further details or options.




 
 
 

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