Many foreigners find themselves captivated by Sri Lanka’s stunning landscapes, rich cultural heritage, and warm hospitality, often contemplating investing in its real estate market for either permanent relocation or additional income. But how feasible is it for foreigners to buy property in Sri Lanka? Let’s explore the options.
Can Foreigners Buy Property in Sri Lanka? Yes, foreigners can purchase property in Sri Lanka, although specific regulations must be adhered to. Here are the key considerations:
- Visa Requirements: Foreign nationals need a valid visa, such as a resident visa, an investment visa or golden paradise visa to acquire property.
- Property Restrictions: Foreigners can buy condominium units (apartments) on any floor except the ground floor. Direct land purchases are prohibited, but leases of up to 99 years are permissible.
- Financial Considerations: Sri Lankan banks do not offer home loans to foreign buyers, necessitating the use of funds sourced from outside Sri Lanka.
Types of Property Foreigners Can Purchase Foreigners have options such as:
- Condominium Units: Available on any floor (except ground) with full payment required upfront via inward foreign remittance before deed transfer.
- Leased Land: Up to 99-year leases available for land acquisition.
Steps to Buying Property To navigate the property acquisition process:
- Legal Assistance: Hire a lawyer to verify property legality and prepare the sale contract.
- Financial Preparation: All funds must be transferred legally from outside Sri Lanka.
- Cost Understanding: Be aware of associated costs like Land Tax, Stamp Duty, Property Survey Fee, Legal Cost, and Realtor’s Fee.
Financial Considerations Due to loan restrictions:
- External Funds: Ensure all funds are transferred transparently from outside Sri Lanka.
Approval from Authorities Foreign investments often require approval from:
- Sri Lanka Board of Investment (BOI): Guidelines and approvals for significant investments.
- Urban Development Authority (UDA): Involved in urban property developments.
Due Diligence Before finalizing a purchase:
- Property Verification: Ensure no legal disputes or encumbrances exist.
- Professional Guidance: Engage a reputable real estate company like Glow Real Estate to navigate complexities and comply with local regulations.
Conclusion: While purchasing property in Sri Lanka involves navigating through legal complexities, it offers substantial potential for appreciation and rental income. At Glow Real Estate, we are committed to providing informed guidance and facilitating a seamless property acquisition experience.
If you’re considering investing in Sri Lanka’s real estate market, contact us for expert assistance. Our multilingual team speaks English, French, Italian, and Sinhala, ensuring clear communication and comprehensive support. We’ll ensure you have the latest information and access to the best opportunities available and guide you to the best opportunities available. Your dream of owning a property in this paradise island is just around the corner!
