Buying land/property in Srilanka

Hello lankanexpat.

Welcome to Expat.com

Thanks.

Karen

Buy a condo!
No land tax available!

A sri lankan family i have known fir 3 years have asked me to to buy some land and build a house due to the laws now i cant buy. They saud no problem you can buy in there name and they will make a letter and sign it with witness at lawyers saying. That its my land but the deed is in thete name they want me to do this cos hete in miridsa tourist buisness is good. They said to rent kit out and go halves on profit is this legal

Why do you purchase it under their name?
Its a trap.
Instead of that, talk to the current owner of the land and go for a 99 year leasehold.

Last year they tried to get me to buy land and so not to pay 100 per cent tax daid put it in there name and they will write letter saying i bought it this year i can buy 5 perches by beach but sri lankan goverment change law to buy now. But they said no problem as freinds we put in there name problem with lease 100 per cent tax now. I am a suspicious person in character and think the arrangement is not legal they. Keep telling me it is letter saying its my land by lawyer is llegal please tell me if it is legal

Last year they tried to get me to buy land and so not to pay 100 per cent tax daid put it in there name and they will write letter saying i bought it this year i can buy 5 perches by beach but sri lankan goverment change law to buy now. But they said no problem as freinds we put in there name problem with lease 100 per cent tax now. I am a suspicious person in character and think the arrangement is not legal they. Keep telling me it is letter saying its my land by lawyer is llegal please tell me if it is legal

In front of the Judiciary no letters won't deliver you any justice but the real deed.

Once you purchased a land under someone else's name, it will be legally owned to the deed owner. No letters will deliver you any justice. They are trying to make your self a tenant on your own land. They can abolish this document at any time.

100% tax is abolished now.

Instead of selling, government brought in the leasehold option.

I would suggest you to talk to board of investment before making any decisions.

You must use a good lawyer that understands how foreigners can buy in Sri Lanka. There are too many stories of people who follow the rout you are considering and lose everything.  Don't be a victim - use your common sense.  You would not take a risk like that in your own country - why do it anywhere else? What will you do when you return to the country and find they have sold the property to someone else?  Your little piece of paper will be useless.  The decent lawyers will suggest a two company system to buy the Freehold with professional nominees .  Alternatively, more simply and cheaper, you can take a 99 year lease in your own name.

The 100% tax no longer exists.  You can no longer buy FH property in your own name. You can do it though a company system or you can take a 100% lease.  Contact a reputable aqent such as Pearl Properties in Galle or a decent legal firm.  Don't cheapskate or your investment will be at risk. There are too many sob stories of lovely foreign people that did not take proper care of their investment here and lost it.  Do't follow that way.

i am back in england now i mentioned leasing this land and they said it would be to expensive i dont know the procedure of leasing, and yes i do need to take legal advice, everytime i say something like i said i would take legal advice they said it would be to expensive, i think losing 25 thousand pounds is worth paying for legal advice, they say to do it secretly, why i do not know, i am happy if i can help them but the land and house i am going to build i need to know is mine, thanks c phillips

You cant buy a land but you can lease a property legally, at anytime. Yes you need a lawyer for leasing. You need not to do anything secretly.

Legal Advises aren't that costly!
As a foreigner, cost effective option is for going for leasehold and build the property.

Thanks,
Zee

Please meet me personally or call me. My e-mail [email protected]

I would like to help you. I came back after serving in France 32 years.

There are efficient lawyers regarding these matters.Don't be prey to these people. I worked in overseas nearly 32 years in Europe. Now I'm settled down in Srilanka. If you need any advice pl. write to me , I can help you. I like to help you .Even you can meet me. My e-mail: [email protected]   , Good Luck

Wait a few months  until new laws on foreign ownership are published.  Put the Freehold title in your adopted kids name and grant yourselves a 99 year lease.

I have commented elsewhere on this blog that foreigners can buy property without the 100% tax if its above the 4th floor of a condominium property. (The car parking floors are excluded in determining the floor level)

Also please note that the stamp duty payable by the buyer at 4% (i.e. the first Rs.100,000/- at 3% and the balance at 4%) is based on the value fixed by the Revenue Assessors of the respective Provincial Council. Their determination can be vastly different from the price mentioned on the Deed of Transfer / the actual consideration paid by the buyer.

Please do not buy properties in the name of someone else for the sake of avoiding the land tax. That "someone" will eventually claim ownership. Though a 99 year lease appears to be as good as ownership, it is STILL a lease and the Lessor will continue to be the owner. This method may be good if your plan is to live in Sri Lanka only for a short period of time.

I am a lawyer and these comments are for the benefit of foreigners intending to buy property in Sri Lanka.