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Foreigners can buy apartments and condominiums from the ground floor. Condominiums may be purchased as long as the entire cost is paid upfront through an inward foreign remittance before a required deed of transfer is executed.

The following possibilities are available to foreigners who want to enter the real estate market:

 a)   By leasing the property

 b)   By inheriting

 c)   By a gift from parents

 d)   Part of a private company with a local shareholding of 50% or above

 e)   As a part of a locally listed public company

 f)   Buy an apartment / condominium (any floor)

 g)   By obtaining Dual Citizenship.

Important Documents

Prior to payment, the developer needs to submit the following documentation.

1.      Title Ownership

2.      Copy of deed

3.      Ownership certificate issued by local authority

4.      Copy of street line certificate issued by the local authority

5.      Preliminary clearance letter issued by the condominium management authority

6.      Building plan approval & development permit issued by UDA / Local authority

Taxes for Property

3% Stamp Duty on first LKR 100,000 and 4% thereafter.

Buyers no longer need to pay VAT tax on the purchase of an apartment / condominium.

Financial Process

If a foreign resident wants to purchase a property, then the money will need to be channeled in to the country via Inward Investment Accounts (IIAs),

The government will allow $45,000 to be brought in to the country without declaring the source (Budget 2017)

 The budgets of 2017 & 2018 have proposed that foreigners be allowed to borrow money from local banks for the purchase of condominiums (up to 40%).

Eligibility Criteria to open an IIA :

· Citizens of foreign states resident in or outside Sri Lanka

· Non-national of Sri Lankan origin, resident outside Sri Lanka

· Sri Lankan citizens resident outside Sri Lanka

· Companies incorporated outside Sri Lanka

· Foreign Institutional investors such as country funds, mutual funds and regional funds.

Residence Visa

Foreigners who invest over USD 250,000 will be allowed residence visa in Sri Lanka under the Resident Guest Scheme Visa programme