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Old Aug 28th 2010, 2:15 am   #16
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Default Re: Buying in Sri Lanka

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Originally Posted by dreadsoc View Post
Hi Cbc

It is very easy to lose your heart to somewhere the way we all did with Goa, but when entering into the arena of purchasing property the only way to go is to rule your decision with your head and not your heart (which I know by experience is hard to do).
Listen to your intuition. The agents are going to say everything is fine because they want to sell - that is how they make a living. But the very term 'lawyers have found a way round it' is a warning in itself. It means they are trading on what they see as loopholes. Amendments to laws can close those loopholes, and you could easily find yourself with future problems by using legal loopholes. In the UK, laws cannot be applied retrospectively, but other countries often do apply legal amendments to past deeds.

Ultimately it is your choice whether or not you buy, but please do not place your hard earned money at risk without knowing for sure that you are fully legal.

Good luck - but proceed with care

Dread - x
Thanks again for your advise:
I've emailed the agent stressing that I don't like the ways of buying that he has put together and lets see what he has to say about it,he is yet to respond.
I know many people who have bought in Thailand under companies, lease hold and they really feel its solid, is Thailand more safe than Sri Lanka?
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Old Aug 28th 2010, 11:58 am   #17
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Default Re: Buying in Sri Lanka

With effecr from 30 September Sri Lanka is scapping it's visa on arrival.

John
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Old Aug 28th 2010, 12:52 pm   #18
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Default Re: Buying in Sri Lanka

This move has now been reversed

http://www.dailymirror.lk/index.php/...-reversed.html
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Old Aug 28th 2010, 3:42 pm   #19
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Default Re: Buying in Sri Lanka

[QUOTE=cbc;8804023]Due to the 2 month out rule in India, I'm looking into buying in Sri Lanka.
Is there anyone out there who has bought in Sri Lanka after the 100% tax was imposed on non-Sri Lankans.
I'm told there are a few ways to buy:
1. Set up a company and under tourism you own 100% shares then your company buys the property.

2. Find a TRUSTworthy person in Sri Lanka buy it in there name and lease it from them for 99 years.

2. Keep the name in the previous owner and then do the 99 year lease, the lawyers word it so they cannot have any claims on it.

4. The agent buys it under there company name and then you lease it for 99 years. The lawyers word it so they cannot have ant claims on it.

5. Buy the free hold and pay the 100 % + tax.

After all the goal posts were moved in India for buying property I'm worried about the company route, also the 99 year lease route too.

Any ideas/experience on a saf
Please never buy a property in a country you need a visa.
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Old Aug 28th 2010, 4:43 pm   #20
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Default Re: Buying in Sri Lanka

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Originally Posted by tarkacreek View Post
Interesting to read the comments after the article, presumably from Sri Lankans? It goes to show they have the same xenophobic tiny-minded attitude of many Goans......

So let this be a warning if you are thinking about buying there. No matter how legally you think you are purchasing, when the politicians need to appease the populace by changing the law..........you will be no more than cannon-fodder, just like in Z-o-S.


.
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Old Aug 28th 2010, 5:09 pm   #21
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Default Re: Buying in Sri Lanka

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Originally Posted by johnny five View Post
Interesting to read the comments after the article, presumably from Sri Lankans? It goes to show they have the same xenophobic tiny-minded attitude of many Goans......

So let this be a warning if you are thinking about buying there. No matter how legally you think you are purchasing, when the politicians need to appease the populace by changing the law..........you will be no more than cannon-fodder, just like in Z-o-S.


.
Yes I read the comments too, interesting......
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Old Aug 30th 2010, 6:34 am   #22
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Default Re: Buying in Sri Lanka

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Yes I read the comments too, interesting......
I have just got a email from the property agent:

On 99 year lease,he replied: That he understood my concerns.He said that a 99 year lease cannot be taken to court under someone else name where as my name is registered in the land registry, same as a buyer with all those benefits.

On opening a company, he replied: opening a company is ok even if its a non running as far as you show the tax and it can be a guest house for example.

Another option he has come up with is put a small amount as the buying price in the deed and pay the 100 % tax so that it comes under your name.
This is completely legal. he said.

He ended the email with talk to a lawyer regarding theses matters and they will advise me on these things.

Any comments on this, please let me know your advise.
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Old Aug 30th 2010, 8:03 am   #23
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Default Re: Buying in Sri Lanka

Why are you getting legal opinion from a property agent? Opening a non trading company is something you need to take advice about from someone. Please heed the advice given and prepare a scenario which includes renting.
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Old Aug 30th 2010, 8:10 am   #24
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Default Re: Buying in Sri Lanka

Quote:
Originally Posted by cbc View Post
Thanks again for your advise:
I've emailed the agent stressing that I don't like the ways of buying that he has put together and lets see what he has to say about it,he is yet to respond.
I know many people who have bought in Thailand under companies, lease hold and they really feel its solid, is Thailand more safe than Sri Lanka?
In Thialand REal Property can only be owned by a Thai. Unless you are married to one then the residence issue is a real pain in the backside. Thialand is not safer than Sri Lanka - just a different form of danger.

Do you really know 'many people' who inhabit on the basis you describe - I know no-one but have heard of many horror stories of people losing everything by being conned.
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Old Aug 30th 2010, 10:21 am   #25
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Default Re: Buying in Sri Lanka

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Originally Posted by Bijilo123 View Post
In Thialand REal Property can only be owned by a Thai. Unless you are married to one then the residence issue is a real pain in the backside. Thialand is not safer than Sri Lanka - just a different form of danger.

Do you really know 'many people' who inhabit on the basis you describe - I know no-one but have heard of many horror stories of people losing everything by being conned.
As I'm based in Asia, Thailand is the main place where people I know buy, all on lease hold with opening companies which they are the major share holder.
No Thai spouse.
They have had no problem at all, with there properties.
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Old Sep 1st 2010, 6:24 pm   #26
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Default Re: Buying in Sri Lanka

Quote:
He ended the email with talk to a lawyer regarding theses matters and they will advise me on these things.

Any comments on this, please let me know your advise.
Find your own lawyer.
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Old Sep 2nd 2010, 4:17 am   #27
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Default Re: Buying in Sri Lanka

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Originally Posted by leavinggoa View Post
Find your own lawyer.
Yes don;t worry if go ant further I will get my own Sri Lankern lawyer.
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Old Sep 4th 2010, 5:08 am   #28
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Default Re: Buying in Sri Lanka

Steve you are supposed to have a 5yr visa so the 2month out doesn't apply to you, unless it's a 5yr tourist visa
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Old Sep 4th 2010, 6:19 am   #29
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Default Re: Buying in Sri Lanka

Quote:
Originally Posted by cbc View Post
I have just got a email from the property agent:

On 99 year lease,he replied: That he understood my concerns.He said that a 99 year lease cannot be taken to court under someone else name where as my name is registered in the land registry, same as a buyer with all those benefits.

On opening a company, he replied: opening a company is ok even if its a non running as far as you show the tax and it can be a guest house for example.

Another option he has come up with is put a small amount as the buying price in the deed and pay the 100 % tax so that it comes under your name.
This is completely legal. he said.

He ended the email with talk to a lawyer regarding theses matters and they will advise me on these things.

Any comments on this, please let me know your advise.

Hi CBC

All of these routes were tried in Goa, and all of them led to problems for the foreign buyers. Agents and lawyers will sell you the routes as easy - but none of them are quite what they seem. Sri Lanka is only just recovering from vitual civil war, so they are welcoming at the moment - but once the property prices outprice the locals, who knows. The visas are not guaranteed either.

Your agent is BS'ing you - Someone has already pointed out to you that the law there states you cannot hold more than a five year lease as a foreigner, which means that the 'owner' whom you have nominated in your deeds can terminate the lease after 5 years , and CAN take the matter to court, AND is likely to win, because you are legally not allowed a 99 year lease.

If you open a shell business, bear in mind that at a later date, the Sri Lankan govt may start to change rules. As well as that you will need to file annual tax returns - this means employing an accountant and a company secretary - in Goa this amounts to between £500 - £1000 pounds per year and is one almighty pain in the backside ! There is also a need to produce minutes of an AGM as well as minutes for quarterly meetings etc etc and more. It is not the easy option you are being led to believe.
As for only putting a small amount on the deeds instead of the full amount paid - if you are caught you will be likely prosecuted for fraud and/or tax evasion - these offences usually carry a custodial sentence in the UK, so I am sure it would be likewise there. Also if your builder doesn't deliver or turns on you (as many builders have in Goa) and you want your money back - guess what figure you will have refunded ..... yep you guessed it, the one on the deeds !!

My honest advice to you is to rent for a few years at least until you see how the situation pans out, regardless of what others are doing. Ask yourself this - how safe will it be owning a property if you have to use illegitimate means to do so?

Dread - 'fully concerned
x

Last edited by dreadsoc; Sep 4th 2010 at 6:20 am. Reason: spelling!
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Old Sep 4th 2010, 9:04 am   #30
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Thumbs up Re: Buying in Sri Lanka

Well explained Dreadsoc.

Lewys x
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