Can a foreigner buy property in Sri Lanka ?

If you had thought about this before 2014, the answer would have been ‘Yes’ and the trick is to pay 100% tax. That is of course in addition to all the other expenses. However, after the LAND (RESTRICTIONS ON ALIENATION) ACT, No. 38 OF 2014, Foreigners cannot buy land or property unless you can fulfil any one of the criteria’s set forth in this ACT under Clause 3(1).

If you can’t buy property in Sri Lanka then you will simply have to move on to the next best thing, Renting Apartments. Under this ACT you can rent property up to 99 years with 7% tax. It also states that a foreigner can only rent an apartment for long period provided it is on or above the 4th floor.

Now that the options are clear the next thing to do is to get a real-estate agent because of the paper work and the complexity of the real estate law in Sri Lanka. The agent will explain the ins and out of the trade providing details on the various costs that you have to bare as the buyer. Most of the time these include but is not limited to the Stamp Duty Fees, Property Survey Fees, and Legal Fees. If you don’t want to inquire additional legal fees to transfer buying rights to the agent via a power of attorney you will need to be in Sri Lanka to complete the purchase. Preferred mode of payment among most sellers is cash transaction which means the best place to do it would be in a reputable bank.

Of course there will be many other ways through which you can cut down on these insane costs. Most Sri Lankan real-estate companies know these loop holes and can assist you in acquiring your dream home. It simply a matter of getting connected to the right people. Bottom line is that if you’re a foreigner and you really want to buy property in Sri Lanka, go talk to a few agents and do a comparison. See how each story unfolds. Get a taste of the real-estate market before you make any huge decisions.


Can a foreigner buy property in Sri Lanka ?