Property for sale in Sri Lanka

Is the administrative capital of Sri Lanka. It is located beyond the eastern suburbs of the commercial capital Colombo and is often called New Capital territory.

Is an island nation in South Asia, located about 31 kilometers off the southern coast of India. It is home to around twenty million people.

Sri Lanka’s property market was already suffering following the government’s reintroduction of the 100% property tax that’s levied against foreign buyers of Sri Lankan real estate, but since December 2005 when the Tamil Tigers increased their violent efforts to secure a homeland in the nation, the Sri Lankan property market has been a no go area for most investors.

The investment potential from real estate in Sri Lanka is significant but the property market is immature and suffers from having a government that cannot commit to attracting foreign direct investment.

This makes the property buying process in Sri Lanka particularly unpleasant for an international investor; but those who are committed to buying real estate in Sri Lanka for investment purposes can achieve their goals but need to be prepared for hurdles and hiccups.

Because of the reintroduction of the 100% property tax that’s levied against foreign buyers who purchase freehold real estate in Sri Lanka, it’s necessary for an investor to firstly decide how they are going to tackle this issue – naturally enough when a government introduces a ridiculously high tax there are people who find ways around it! Sri Lanka is not an exception; there are ways around the 100% taxation rule.

Either a non-resident property investor can purchase a leasehold property with a 99 year lease and acquire the right to buy the freehold title to the property if the 100% taxation rule is ever rescinded. During the 99 year lease period an investor can effectively do what they like with the real estate subject to local council rules and regulations. Alternatively another way around the 100% taxation issue is purchasing investment property for sale in Sri Lanka through a legal entity such as a company or trust structure.