Buying in Sri Lanka
 

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 safe buy.

Thanks for any info.

Re: Buying in Sri Lanka
 

The process you describe cold apply in any country where foreigners are not allowed to own property.

What you are proposing is madness - no -one would advise you to take step 1 - and thre is no way that step 2 can be enforced!

Just rent and come and go betwen India and Sri Lanka!

Re: Buying in Sri Lanka
 

These are the routes that are being offered to foreigners and loads are buying in the Galle area and all over this way.
I'm just not sure about this, after India just changed the rules to the non Indian.

Re: Buying in Sri Lanka
 

Get a lease its much simpler in the end.Then rent it to other people caught in the same visa trap as your self.Make it self financing.I know the Sri Lankan Government have simplified the rules, but its a very pricy option to own direct in Lanka.You have to have a considerable amount on money coming in to obtain the necessary residence visa. There is a thread somewhere in Britexpats on this subject.Hope this helps.

Re: Buying in Sri Lanka
 

Get a lease, whats that a 99 year one to buy or very short term?

Re: Buying in Sri Lanka
 

whats the visa situation like in sri lanka? is it easy to stay forever?

Re: Buying in Sri Lanka
 

The vias situation is that you get a i month on landing then you can get an extension quite easily . But not forever, maybe a 3 months depending on your circumstances.As for the leases the laws that govern them are basicaly the same as India. 5 year or 20- year....Have a look for the earlier thread on this because that covers most of what your looking for.

Re: Buying in Sri Lanka
 

In my opinion none of these routes seems safe. These were all tried and tested in Goa over the years, and resulted in plenty of people losing out and/or finding themselves in dire straits. The Govt of India welcomed people buying at one point, and then changed the rules. The locals were more than happy to sell, but now complain about property prices ! My advise would be to lease. Sri Lanka has only just started to recover and become a tourist magnet, but what happens when foreign buying pushes the price of real estate up ? Will the locals and govt be so obliging then? !!!
And never ever put your property in anyone elses name - because it will never be yours and despite any supposed document, it may be found null and void if challenged in court as it probably breaches the rules.

As someone in the legal profession, I would say that you would be open to potential problems if you do anything other than go freehold, and even then you risk a changing of the rules.

I have posted this not to be negative, but purely in order to make you think seriously and look at all the potential loopholes and pitfalls before you commit your hard earned money. If you want me to explain this more fully please pm me and I will give you a more in depth explanation.

Dread - caution
x

Re: Buying in Sri Lanka
 

Thanks for all your advise, I just can,t get my head around how many people have bought out there and are buying on theses terms and are not worried.
The places are lovely out there and the agents really reassure you that theses methods of buying are completely safe, I've even said about India changing the rules and they say that's India, Sri Lanka like tourists and like them buying property it boosts the area in every way!
I really want to get in touch with anyone who has bought out there but they don't seem to have any sites loke this one.
Any ideas?

Re: Buying in Sri Lanka
 

I heard of someone who "bought" a renewable Resident visa for SL75000/-.

I'd be wary of "buying". Rentals are still cheap.

Re: Buying in Sri Lanka
 

Hi Cbc

I can't offer advice on where to find someone who has bought in Sri Lanka, but I do recall all the assurances people were given in Goa by agents, lawyers, developers and accountants, and all of those assurances turned out to be false and worthless. In fact friends of mine were even given advice re buying their property by the HCI in London, which also turned out to be bad advice. Remember the Goans liked tourists and wanted people to buy property once - look at things now.
Reading the suggestions above regarding buying in someone elses name, then having a 99 year lease, you need to be very cautious here. Any 'owner' can revoke a lease at any time if they can show reason, and reasons can be the smallest of things like claiming that you have been bad tenants and citing petty facts which are difficult to prove or disprove. This is so whatever legal document you have, because the 'owner' will always have the higher rights.

Greed is prevalent the world over and if some Sri Lankan person sees a way of getting his/her own house at your expense, can you absolutley guarantee that they would not take the opportunity? I know there are many genuine people out there, but how would you know which one is genuine and which one would con you? I would strongly advise that you do not choose this route, despite what other people tell you. I do sense that you are already a bit doubtful of these methods - remember you feel that way for a reason so don't dismiss your intuition.

My advice to you is to actually find the laws regarding visas and status in Sri Lanka, together with the written law on property buying, and the banking laws on foriegn exchange. That is the only way you will know what is safe and what is not. If you find that law and want it interpreted please send to me and I will do so for you.

Dread - intuition is the key to the mission
x

Re: Buying in Sri Lanka
 

:thumbdown: Like you Dread - once bitten twice shy, I would definately
rent, and not purchase anywhere in the world except in the UK.:rolleyes:

Re: Buying in Sri Lanka
 

Thanks again for the info:
Yes I do have a bad gut feeling about these 99 yr leases, but the agents say the 100% + tax on non-Sri Lankan is so crazy that lawyers have found a way around it, which they say is 100% legal.
Where this is written down and is legal I just don;t know???
Anyone know the laws on buying in Sri Lanka?

Re: Buying in Sri Lanka
 

Yes I do have a bad gut feeling about these 99 yr leases, but the agents say the 100% + tax on non-Sri Lankan is so crazy that lawyers have found a way around it, which they say is 100% legal.Where this is written down and is legal I just don;t know???

Just read what you have said - you know you should not buy but rent.:wub:
As they say "the choice is yours" Good Luck.

Re: Buying in Sri Lanka
 

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

Re: Buying in Sri Lanka
 

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?

Re: Buying in Sri Lanka
 

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

John

Re: Buying in Sri Lanka
 

This move has now been reversed

http://www.dailymirror.lk/index.php/...-reversed.html

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.

Re: Buying in Sri Lanka
 

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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Re: Buying in Sri Lanka
 

Yes I read the comments too, interesting......

Re: Buying in Sri Lanka
 

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.

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.

Re: Buying in 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.

Re: Buying in Sri Lanka
 

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.

Re: Buying in Sri Lanka
 

Find your own lawyer.

Re: Buying in Sri Lanka
 

Yes don;t worry if go ant further I will get my own Sri Lankern lawyer.

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 :wub:

Re: Buying in Sri Lanka
 

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

Re: Buying in Sri Lanka
 

Well explained Dreadsoc.

Lewys x

Re: Buying in Sri Lanka
 

Yes its a 5 year x visa, and i know the 2 month rule does not apply to me.
I also know i will never get another.

Re: Buying in Sri Lanka
 

Thanks Lewys
Nice to see you posting again. We missed ya ! :D

Dread - x

Re: Buying in Sri Lanka
 

The buying process was very straightforward due to the incredibly helpful and efficient professionals who seemed to bypass the normal queues and systems in their efforts to help me achieve my aim.The legal owner of the property is the only one allowed to sell his property; in cases where a more than one person is considered the legal owners of the land each owner should agree to the sale. In most cases, an estate agency would ensure the ownership of the property even before the public offering. The deed of ownership must be checked by the lawyer in the Land Registry.

Re: Buying in Sri Lanka
 

Advertising?

Re: Buying in Sri Lanka
 

Hi SS John
Have you bought a property in Sri Lanka?

Re: Buying in Sri Lanka
 

How many "L"s in Gullible?

Look at this persons profile and you will see what Leavingoa was referring to........


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Re: Buying in Sri Lanka
 

Hi SS John

Welcome to BE.
We welcome all posters onto this site, but there are a couple of phrases in your post which do give me some concerns, especially where this thread is discussing buying property in Sri Lanka. I prersume your post is referring to your own personal experience of buying a property in the said Sri Lanka?

First you state that the Professionals who seemed to bypass the normal queues and systems in their efforts to help me achieve my aim - Can you please explain how this was done?

Also the phrase "The legal owner of the property is the only one allowed to sell his property - please define 'legal owner'. Is this the person whose name appears on registered deeds? I ask this because from previous posts it appears that foreign buyers are being advised to put their property deeds in the name of a local, which means if the local person on the deeds is the 'legal owner' then the foreign buyer is on very dodgy ground.

Hope you will repost and expand upon these comments.
Again welcome to BE

Dread - detailed
x

Re: Buying in Sri Lanka
 

Thanks every one for your concern and vetting I really need all the help, if anyone is dodgy I can rely on this site/members to let me know, ones bitten twice as shy!!!
Maybe this is 100% a person who has bought in Sri lanka, if so please keep intouch, if not .......

Re: Buying in Sri Lanka
 

I like your investigative style J5 and regarding Mikki too.My best friend bought a lease 25 years ago in Sri Lanka from a journalist mate of his.It was a detached bungalow in Ambalangoda. His friend subsequently died very soon after in New York.He enjoyed the property for 15 years then because of the war he decided to leave it to the servants, who were live in anyway.Two years ago the original owners sister arrived on the scene and claimed vacant possession of the place.Apparently if a foreign owner has not visited the property for five years, it can be reclaimed by the original owner or his heirs.When i was in Sri Lanka over Xmas, one of the jobs i did was see what was happening re The High Court in Galle.She had won the case and the family who had lived there for nearly 22 years, were back on the street.Despite the lease being a 20 year roll over indefinitely, she got it on the clause of vacant possession because the servants, being uneducated fishing folk,never re registered the place in their names.The moral of this story is only lease for 5 years because Sri Lankans are as greedy as Indians when it comes to property

Re: Buying in Sri Lanka
 

Sri Lanka as from yesterday is effectively run by a dictator with unlimited powers to do anything.Ramprakasha (?) can now do anything he wants with the Chinese bankrolling him and India training his Storm Troopers, Sri Lanka is heading for a civil war again only this time it wont be the indigenous population against the Tamils , but a political struggle for democracy.He has gagged the press, murdered journalists and thrown opposition politicians into jail on trumped charges. The judiciary are a joke.I wouldnt pitch an old tent there now.I think Ramprakasha wants to transform Sri Lanka into something resembling Singapore.The hangman is going to be very busy soon.....