So here’s yet another article suggesting that the law could change and foreigners could, once again buy Sri Lankan property and own it outright. The last time this was possible was 2012 when foreigners could buy ….BUT… they had to pay 100% of the land value as tax. So be it.
So here we are again, apparently the government is planning to allow foreigners to buy again – “under strict conditions”. Could that mean a 200% land tax this time around?
I mean from Sri Lanka’s perspective, this is economically a very good thing … increasing investment, attracting more travellers, increasing the FOREX reserve. However, the tricky thing remains ….how do you get your cash OUT of the country if you ever decide to go home?
It is possible, and it involves SIA accounts and a large paper trail. Before you move a single dollar into Sri Lanka you have to ensure your financial exit strategy is fully prepared for any eventuality. We sent our Company Accountant to personally speak with the Head of Exchange and Control to confirm that money could be repatriated. He clearly stated that it could so long as the set up procedures were followed closely and a clear paper trail exists.
You can read the latest rumour news here: http://www.lankaweb.com/news/items/2016/09/02/sri-lanka-to-ease-restrictions-on-foreigners-acquiring-land-for-investment-but-deceitfully-making-repatriation-of-invested-money-impossible/