foreign buyers and leasers tax

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keith4Guest27 February 2011 15:44:57

I have just read that the government have passed a bill on Feb 11 closing the gap that allows foreign buyers to lease instead of buy to avoid the 100%tax rate. I think this is draconian, to say the least if it is true. I was really planning to come to Sri Lanka this year to lease long term, an old property, do it up and employ Sri Lankans and run a small holiday let business. I cannot afford to give the government 100% tax on top of the purchase price. This news is a big blow to me as I had been doing a lot of research and was growing to really like the place. This is not what I call welcoming foreign investment - is it greed or is it that you do not like foreigners to stay longer than a holiday? Thank you Sri Lanka for making us feel welcome I shall now take my money elsewhere and you will lose out on investment on restoring a property, Sri Lankan employment and tourist money - how sad is that? If someone tells me I am wrong I would be very happy! Keith

Aryamann Member

Member since 25 February 2011

AryamannMember28 February 2011 09:19:16

Hi Keith

I was at the Ministry of land development today A.M.

Foreigners must pay 100% tax if land purchased from a private party.

It is possible for foreigners to lease property directly from the Government, you will need to get a company registered and present your project report for consideration. Lease period 99 years taxed at 7%

SGhawker Member

Member since 01 April 2011

SGhawkerMember01 April 2011 11:53:01

please could you post a link where you read those recent bad news.

Did new rule apply to the appartments being in leasehold also (or it applies only to the landed freehold houses and freehold appartments)?

I am considering buying an appartment (offplan from developer) with leasehold status but I cannot find any clear government info with the rules and tax rates.

Is there any difference in tax/surcharge if I buy leasehold appartrment from the developer or from a private person?

Any links/references will be very helpful, many thanks