Relocation advice

Hi Picke!

Welcome to Expat.com

Armand

Hi Picke,

I'm a newcomer to Sri Lanka and we've started a small business here. So far things are good and we wish to stay here for long time. Buying a property in Sri Lanka still is a good opportunity, as it's growing economically. As it is totally different from visiting the country for vacation, I'd suggest the following:

- It's a beautiful country. Sri Lankans are nice people generally, unlike some other tropical countries they're friendly and welcoming if you treat them friendly. However you should be careful when it's a matter of purchasing properties.
- Take some time to visit again for buying, look for opportunities everywhere, not only Matara.
- Unfortunately the deeds and property papers in this country are not reliable. So don't trust people like tuk-tuk drivers but check all the opportunities you encounter. Best is to find trustworthy locals after staying for some time, and go with them to check cases, then investigate with lawyers, surveyors etc.
- Normally you will need to hire a lawyer, check the land with surveyor, and in Land registry. But it's highly recommended to do these steps 3 times with different agencies to make sure before buying.
- The closer properties to beach, the more risk buying: As you enter the touristic areas to buy a property, there are several risks if you want to invest; such as governmental limits which the owners probably will not tell you about. If you are not going to start a business, it's much better and cheaper to go inside the country. It means lands and properties over 3-4 kilometers away from beach which is not risky that much and also you can go to beach easily.
- There is 100% tax for buying as a foreigner as you might know. Do NOT buy something in someone else name to override this. Some people have lost their wealth simply trusting local people.
- Visa is easy to get and extend if you want to stay 6 months a year. For more, you might want to get residence visa which is not hard to get, but more expensive. I'm not sure how old are you, but for over 54 years old people there is a special visa opportunity which I have no information about it, but sounds very good.
- As a summary, this country is really beautiful, people are good, and you will enjoy it, but to buy properties do not trust simply. Check 3 times or more and be pessimistic so that you can live happily later.

I'd be happy to help if you have further questions. Good luck :-)

Hi there

Thank you so much for your advice, this is very helpful and will certainly make us proceed with more care than we would have done. We were thinking of buying a 3 or 4 kilometres inland from the beach, perhaps 1 or 2 older properties to restore, do you think this would be risky considering that we would need to employ local workmen for some of the work? You advised against using a 'Sri Lankan friend' when buying property but is there any way to avoid the 100% tax? Also you said to check with 3 different agencies to be sure, are the lawyers,surveyors, officials etc trustworthy and have you used anyone that you could recommend? Again thanks for you help it is exactly the sort of advice we need. Hope your business is going well!

Kind regards Picke

Hi,

It's a good decision to buy such a property I think. Regarding 100% tax I'm not sure, I've heard about ways and I can ask for you. I'll ask and send you the info.

As of lawyers, like I said spend a while here (one month maybe) before buying. You'll meet many people including expats who have lots of experience and most of them willing to share their knowledge. Through them you can find good lawyers, real estate agencies, constructors etc. Those I chose are well known around here and I'm happy with their work so far. However, I've not bought any properties, which could be different sometimes.

And let me clarify about not buying properties in someone else's name: I mean no disrespect to Sri Lankan people, I enjoy being here and I like them. What I said is something general not only regarding Sri Lanka. Suppose that you're buying something with a considerable price in someone else's name, and you know them and they're good. But this means you have created a situation for this friend so that if after a while something goes wrong between you and them, or if this local friend has sort of economic problems, he/she always has the option to claim the property.

For most of the foreigners who have lost their money in this way, I think it's their own fault by simply creating such an opportunity for someone to steal something from them, and making a thief out of some ordinary guy. So, better to make everything clear at the beginning and then enjoy the beauty of this country for the rest of time. I'll collect and send the info later.

Hope it works for you, as it does for many others

(Moderated: off topic)

Hi, thank you again. We will be visiting sri lanka in may for about a month and your information will be very useful. Hopefully we will get a good feel for the place in that time and meet lawers etc. Any more help or advice you have would of course be very welcome but thanks again for all you have already done.

Ya sure you are welcome.... Is your tip arranged...?
see you in May...
Take care and keep in touch...

There are few ways to acquire a land/property bypassing the 100% transfer tax.

1. Use a company name instead of your personal name
2. Work on a strategy where it sees like it was mortgaged and person failed to make your payments on time
3. Work on the property valuation

Company: In other countries there are companies specialized in managing portfolio of properties on behalf of the investors. You can register similar with a reliable party else can use company name to acquire a property over here in SL.

To get the max out from the suggestions, you need a very reliable lawyer. They do have 101 tricks to get you out from this tax scheme.

cbanda wrote:

There are few ways to acquire a land/property bypassing the 100% transfer tax.

1. Use a company name instead of your personal name
2. Work on a strategy where it sees like it was mortgaged and person failed to make your payments on time
3. Work on the property valuation

Company: In other countries there are companies specialized in managing portfolio of properties on behalf of the investors. You can register similar with a reliable party else can use company name to acquire a property over here in SL.

To get the max out from the suggestions, you need a very reliable lawyer. They do have 101 tricks to get you out from this tax scheme.

http://cmathew.com/articles/foreign_inv … 522760329/

Buy a condominium apartment. And stay as much as possible and after that rent it our for some foreigner. Then you can cove some amount back Let AND AGENT TO LOOK AFTER. i DO REAL ESTATE AND PROVIDING ACCOMMODATION. YOU CAN BUY TAX FREE PURCHASE IN CONDOMINIUMS TOO. For further information get back to me.

@fantasy - Please lower caps lock when writing!

Thank you,
Aurélie

I have been coming to sri lanka 3 years now and have got friendly with a family they always have problems and ask me for money but i dont give now this year they want me to buy some land and build a house. The country has changed the law. They tell me no problem in buying land buy in there name and they will write a letter and have it witnessed and stamped by a lawyer. Saying it my land even though the deed cannot be in my name. They want to give a bond as i dont have all the money to secure purchase. This has to be done secretly too. I am a suspicous person by nature. They have told me letter to lawyer is legal saying the land is minr. I cant see that is possible as the deed is in there nam can you advise thanks

The arrangement has no meaning at all. Its no different from you buying a land and building a house for them. That will be very nice of you to give something if you can afford.

There are developments in which foreigners can buy apartments. How ever it's quite expensive compared to rental returns. However If you are going to use often it's a good option. Or even taking an apartment on rental can be a good option. When you are not using give the place on rental again.

Rasheed

[Moderated: pls post in the Housing in Sri Lanka section]