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☛ EN Advice Buying Property in Sri Lanka

Discussion in 'Sri Lanka' started by texkourgan, Jul 8, 2013.

  1. texkourgan

    texkourgan Addicted member
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    Hello and welcome -

    Buying property abroad can be quite intimidating, even if you have lived in Sri Lanka as an expat for years! Some questions you may have…

    Can a foreigner buy property in Sri Lanka? If so, is it complicated? What is the process for purchasing property? Is there anything a foreign buyer should be especially aware of?

    Have you been through the process? What advice can you give to other expats in Sri Lanka looking to buy - either a home or an investment property? Do you have a check-list or tips you can provide?

    Thanks for sharing! :D
     
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  2. rumbling

    rumbling New Member

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    Yes, a foreigner can buy real estate in Sri Lanka. But its complicated. I guess one of the biggest drawbacks is the constant changing of policies.

    As of now a foreigner can't buy land in his name. He can lease from a local or form a company with a local and buy the property in the companies name. These are done to encourage investment in Sri Lanka.

    Real estate brokers in Sri Lanka and not regulated. So almost anyone can claim to be a real estate agent. So you should be careful when selecting a real estate broker. Since I'm a local I haven't personally worked with anyone. But I'd recommend Lanka Real Estate going by this Forbes article and Ceylon luxury article.

    Another critical thing you need to be concerned about it clear titles and deeds. Especially if you're buying in north and eastern provinces where there was a civil war for 30 years.

    The island is need of investment so I don't want to discourage anyone from buying real estate in Sri Lanka. However real estate is a big investment so be careful about who you work with and be suspicious about cheap deals.
     
  3. Cyrilexpat

    Cyrilexpat Administrator
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    Many thanks rumbling for all this information.
    As I see it it is often the case in Asian countries (but also in Middle East) that you cannot buy land on your name and often needs to get a partnership with a local through a company (which might cause trouble as there is a huge part of trust).
     
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  4. rumbling

    rumbling New Member

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    You're welcome Cyrilexpat. As you said trust plays a huge part and unfortunately highly publicized cases like Gillian Andersons case has made trusting Sri Lankans a bit hard for foreigners. Which is why its probably a good idea to go through a reputed company even though the cost is a bit high.
    Also if you're looking for property to invest then it might be a good idea to go through the Board of Investment. You get tax concessions and many more benefits.
     
  5. Cyrilexpat

    Cyrilexpat Administrator
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    But at the end of the day, whether reputable or not, is there any guarantee on the transaction? What about the company created? Has the local got majority?
     
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  6. rumbling

    rumbling New Member

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    Yes, the local has the majority. A foreigner can own only up to 49% of the company.
     

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