Buy a luxury apartment in Sri Lanka; International Buyers in Sri Lanka
As international buyers continue to show interest in Sri Lankan real estate, due to the high capital gains and rental yields, due to its developing nation status, many so to have become part of the shift toward beachfront investment apartment purchases. With guaranteed returns ranging between 4-6% for beachfront luxury apartments, in comparison to the luxury apartments for sale in Colombo, coastal properties are forecasted to provide greater return on investment.
Elysian Realty provides a dedicated service for international investors interested in purchasing at this iconic luxury apartment project; from assisting with securing investments in real estate, to assisting throughout the local legislature and property law procedures.
Sri Lankan property law and regulation allows for
- Foreign nationals to buy apartments in Sri Lanka from level one, upwards.
- Any private company with minority foreign ownership to buy or lease property in Sri Lanka.
- Public companies with over 50% foreign ownership are permitted to buy immovable property.
- Foreign nationals to buy into the Sri Lankan property market using the following options:
- a. Lease of property
- b. Through inheritance
- c. As a gift from parents
- d. As part of a private company with a local shareholding of 50% or above
- e. By obtaining Dual Citizenship
- Foreign nationals to set up Inward Investment Accounts (IIA)/ Securities Investment Accounts in Sri Lanka for their financing from abroad to be channeled via.
- a. Any capital gains/ return on investment received via the financing channeled through IIA can be withdrawn in the same currency as it was deposited in originally.
- b. The Sri Lankan Government allows up to USD 45,000 (or its equivalent in any other currency) to be brought, undeclared, into the country as per the 2017, Budget.
Property regulations to be aware of, prior to purchasing your apartment
- – 15% Value Added Tax (VAT) is added to all projects that broke ground after April 1, 2019
- – Apartments priced at LKR 15 Million and less will be exempt from VAT (TBC).
- – A 3% Stamp Duty is applicable to the first LKR 100,000 transaction; a 4% stamp fee is applicable, thereafter. Ok
- – A 10% Capital Gains Tax (CGT) on the profit, will be effective from April 1, 2018.
- – All the above taxes are applicable to both foreign nationals and locals, alike.
- – Should you choose to renounce residency in your previous country, to become a resident in Sri Lanka, CGT will be required to be paid on the investment property in your former country.