Setting up an offshore entity for property leasing in Sri Lanka: 99-year lease taxes?
3 Answers from travellers
Under the Land (Restrictions on Alienation) Act, foreign nationals cannot own freehold land directly. The standard legal structure is securing a 99-year lease or establishing a local private limited company under the Companies Act No. 7 of 2007. While direct foreign leases previously incurred a steep Land Reform Commission lease tax, structures routed through locally registered companies holding minimum 51% domestic equity circumvent certain restrictions, though corporate compliance costs apply.
Title insurance and exhaustive 30-year deed searches at the local Land Registry are critical; family partition suits (Bim Saviya complications) often freeze disputed plots for years.
Verify coastal setback zone classifications with the Coast Conservation Department (CCD) prior to signing; building anything within 100 meters of high water mark risks mandatory demolition orders.
You must be logged in to post an answer.
Log In to AnswerRelated questions
- Wildlife parks in Sri Lanka beyond Yala - Wilpattu, Minneriya, Udawalawe - which is worth visiting?2 answers
- Kandy Esala Perahera - when does it happen, where are the best viewing spots, and how do I get seats?2 answers
- Arugam Bay vs Weligama for intermediate surfing - which should I choose and why?2 answers
- Best local food to eat in Colombo - where do locals actually eat and what should I try?2 answers
- How cheap can you realistically travel Sri Lanka on a shoestring - $25-30 USD per day?2 answers
- Ayurveda retreat in Sri Lanka - what to expect and how to find genuine treatment vs tourist trap?2 answers
Join a Crew
Kandy Perahera Live Tonight
Perahera Seats, Hotels & Roads
Dalada & Perahera Culture