Five years ago, Sri Lanka’s government imposed stricter guidelines on visa requirements. This took place within a continuing process to improve administrative procedures following the end of the warfare in 2009. Because the new visa regulations were proposed, a new government has enter into power. What impact do the new visa requirements and this new government’s enforcement of the guidelines have on owning a home on the island?
Since the end of the war, Sri Lanka’s immigration services have changed considerably. The procedure of applying for a visa and creating a visa approved is now more a lot like processes in fully developed countries like Australia. All visitors to Sri Lanka now require an electric travel authorisation document (ETA) to get into the country. This represents an identical procedure to the united states and Canada’s immigration services. When it comes to spending longer intervals in the country, (and depending on your citizenship) you can either obtain a Visitor Visa (for a short stay), or a Property Visa. There are many different types of Property Visa. You may get a visa to be a worker, an investor, an associate of the clergy, a diplomat, a student, a family member, a going back former-expat/dependent, an Indian person covered by the 1954 Indo-Lanka Contract, or someone applying to the “My Goal Home Visa Programme” (an application for retirees). The My Desire Home Visa Programme serves to allow “senior international nationals” to get property in Sri Lanka as long as they meet certain requirements. Overseas nationals older than 55 can make an application for this scheme as long as they “remit All of us$15,000 or the equivalent in an approved forex”. Then they have to deposit the cash into a Sri Lankan bank account. Other requirements also apply.
Increase in PROPERTY FDI in Sri Lanka
These days, creating a valid permanent residency visa is usually a requirement of purchasing property in Sri Lanka. However, factors apart from immigration status make a difference the process of acquiring a home on the island. Actually, the rules of property acquisition by foreign nationals have modified for the better lately. Since Chief executive Maithripala Sirisena was elected in 2015, Sri Lanka has relaxed laws restricting international investment. This move has prompted foreign investors to buy homes in Sri Lanka.
Before the leisure law was transferred, foreigners who wished to spend money on property on the island (those buying a leasehold) needed to pay a big and off-putting amount in tax. Because the law was transferred, foreign nationals desperate to buy land can now primarily be 49% shareholders of any leasehold. Foreigners used only to be allowed to own 25% of the land. Foreigners now have the opportunity to obtain a freehold arrangement twenty years after buying this share. This is a big step as in many emerging market segments, it isn’t possible to apply for freehold as a foreigner at all. Foreign investors can now purchase a home with a leasehold of up to 99 years with a minimal tax fee. In addition, the procedure for putting your signature on a offer on property is now a lot more streamlined for foreigners. It still isn’t easy for foreigners to buy freehold properties and land from the outset, so there is still a fair way to go, however the situation is obviously getting better. Therefore good stuff and a shiny future for Sri Lanka’s property market.
A demand for luxury property among foreign nationals in Colombo
City centre property is within popular in the nation’s capital. Regarding to JLL, Colombo documents high sales velocity in projects close to conclusion; out of 3,300 luxury apartments provided since 2005, 98% of the completed devices were reported sold in 2014. While this style does not appear to be increasing by very much, demand remains stable and the economy is steady too. In addition to foreign investment providing a raise to Sri Lanka’s real real estate economy-wise, FDI in addition has had an impact in the kind of property this is the most in demand. Luxury property in Sri Lanka’s capital, Colombo, is increasing. This trend is largely motivated by overseas nationals’ penchant for luxury apartment living, especially among the retired, including those on the My Goal Home Visa. Demand is expected to grow.