During the long, dark and cold winter days many of us dream of owning a place in the sun and some of us manage to turn those dreams into reality. For decades countries such as Spain, France, Italy and Greece have been among the most popular destinations for home buyers.

Close proximity to Britain and the ability to freely settle and work under EU regulations have often been the main reasons for buying property in Europe. However, for citizens of non EU member states buying property in Europe is less attractive as they may be subject to immigration controls that restrict their ability to work, establish businesses and obtain access to healthcare.

In addition to Europe, Florida and Asia have also been hotspots with home buyers. Many Asian destinations including Thailand and Bali have restrictions preventing foreigners as well as foreign companies from owning freehold property outright. Because of these restrictions buyers have entered into various arrangements which are often high risk in order to buy their dream homes.

What most people are unaware of is the fact that in Sri Lanka foreigners can legally own freehold property outright. The property market is buoyant with prices moving upwards in popular areas. As one would expect there are some barriers to ownership but they can be easily overcome by following the law without any need for risky arrangements.

Sri Lanka has an English speaking Anglo-friendly culture. The legal system is very similar to England, Scotland & South Africa. It also has modern facilities such as western style supermarkets, shopping malls, golf courses, sporting facilities, international schools, good hospitals and some vibrant business opportunities.

Until 1961 foreigners were able to buy freehold land outright on the same terms as citizens of Ceylon (Sri Lanka). After independence in 1948, land ownership became an emotive subject for Sri Lankans, so various extra taxes and regulations were introduced by successive governments to make property ownership difficult but not impossible for foreigners.

1. Condominiums

For many years, foreigners have been able to buy freehold apartments in condominium buildings as long as the units were located above the 4th floor under the same terms as Sri Lankan citizens.

In recent times the regulations have been extended to include freehold ground level units as well, but there is no guarantee whether that rule will be maintained long term.

Buying a condominium is the easiest method for getting on to the property ladder in Sri Lanka.

2. Land

In 2018 the Sri Lankan government announced that it would allow majority foreign-owned companies listed on the Colombo Stock Exchange to purchase and build on freehold land. But there is no guarantee whether that regulation would be maintained in the long run.

3. Foreigner to Foreigner Sales

Where a foreigner already owns freehold land they are able to sell it as freehold land land to another foreigner in the same way as when Sri Lankan citizens sell freehold land to other Sri Lankan citizens.

4. Top - Tip

Open an Inward Investment Account (IIA) with a commercial bank such as HSBC. It is a special account designated for eligible investors and resident in or outside Sri Lanka to route funds to invest in permitted investments. (these accounts may be maintained in Sri Lanka rupees or in any designated foreign currency by eligible investors). When a foreigner sells the property he can put the money back into an IIA and send it out of the country without hassle.