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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