Sri Lanka is a country in South Asia, which is located on the similarly-named island on Hindustan cost. Since 2009, the country has become more developed not only in the tourist direction but also in the economy. More than 10% of the world’s tea is produced on the island, and the production of rubber, cinnamon, and gemstones are also significant.
Sri Lanka Realty Advantages
A lot of investors do not buy but rent real estate for a period of 99 years, while the state profit is only 2%. For purchasing, as well as for rent, you can apply for a loan for the period of 12-25 years. In this case, the interest rate is 13%-15% per year.
The apartments situated upper the fourth floor are not taxable. There is also no interest rate on land plots that are bought for the realization of large investment projects. According to experts, it is most profitable not to buy real estate, but to buy land and build new buildings there. The cost of building construction ranges from $70 000 to $90 000.
Buying Process and its Characteristics
The process of buying is almost the same as in other countries. Just decide which object to buy. Then constitute an agreement with the seller and sign a contract of sale or long-term lease. During the process of signing, the investor should make an advance payment. The final stage of the transaction is the signing of the main contract, payment of the entire amount, as well as the grant. There are no restrictions that are associated with the purchasing of real estate by foreigners.
Estate Tax and Mortgages
In 2006, the island’s authorities imposed a 100% tax on the acquisition of real estate by foreigners. If you rent a property for 99 years, the tax is 7%. There are no restrictions in obtaining mortgages for foreign investors. The average loan rate ranges from 13% to 15%, from 12 to 25 years.
The Cost of Other Services
The price for legal services is 2% to 4% of the cost of housing. Stamp duty is 1% for renting, 4% for buying. In case of construction, it is necessary to create a company. It will cost from $2000 to $7000. This amount includes a tax on the transfer of acquired property to the company.