In a strategic move aimed at rejuvenating foreign investment in Sri Lanka’s real estate sector, the Immigration and Emigration Department has reintroduced the Investor Visa program. This initiative, set to go live online on June 1, 2024, offers non-Sri Lankans the opportunity to secure long-term residency by investing in condominium units within the country.
Overview of the Investor Visa Program
The Investor Visa program promises a streamlined application process designed to attract more foreign capital into Sri Lanka. One of the notable improvements includes allowing applicants to apply online, eliminating the need to leave the country during the application process.
Visa Eligibility Criteria
To qualify for the Investor Visa, applicants must adhere to specific criteria:
1. Investment Thresholds:
US $100,000 or more investments qualify for a five-year visa, renewable upon expiry.
Investments of US $200,000 or more qualify for a 10-year renewable visa.
2. Investment Requirements:
Funds must be deposited in any foreign currency into an Inward Investment Account (IIA), verified by a bank statement. While the preference is often for the total investment amount to be transferred at once to ensure clarity and verification through a single bank statement, some development projects may allow for partial payments or staged deposits. This flexibility can accommodate larger investments or projects, like under-construction or off-plan developments, where investors may prefer to spread out their investments over time. Each deposit should be documented and verified to meet the program’s requirements. However, the minimum amount for a visa ($100K or $200K) should be deposited into the IIA account before applying for the visa. Investments directed towards approved condominium projects open for purchase by foreign nationals are eligible for the Investor Visa program. This includes under-construction/off-plan projects, allowing investors to participate in developments that are still in progress. This flexibility aims to broaden investment opportunities and encourage participation in various stages of real estate development across Sri Lanka.
Investments must be directed towards approved condominium projects open for purchase by foreign nationals, approved by the Condominium Management Authority (CMA). Foreigners can verify if a condominium project is approved by checking the official website of the CMA, consulting authorized agents specializing in real estate, directly inquiring with developers for documentation, or seeking confirmation from relevant authorities in Sri Lanka. For the Investor Visa program, the applicant only needs to provide a letter from the developer stating that they have purchased an apartment or are in the process of purchasing an apartment. These steps ensure compliance with the requirements for investment under the Investor Visa program.
3. Application Process:
Initiating an application under the Investor Visa program involves several key steps designed to ensure a smooth and efficient process for prospective investors:
Initial Documentation
Evidence of Deposit: Applicants must provide evidence of their deposit in an Inward Investment Account (IIA). This involves submitting a bank statement that verifies the funds have been transferred into the IIA. Payment in any foreign currency is acceptable, except for Sri Lankan Rupees (LKR). This flexibility in payment options facilitates international transactions and ensures that investments are made in a currency that aligns with global standards.
Developer’s Letter: Alongside proof of deposit, applicants need to present a letter from the developer. This letter should confirm that the buyer has purchased or is interested in purchasing an apartment in the developer’s project. This document is crucial for validating the investment and ensuring that the property investment aligns with the requirements of the Investor Visa program.
Minimum Investment Requirement
Investment Threshold: The minimum investment required to qualify for the Investor Visa is US $100,000 or its equivalent in other currencies. This threshold is set to ensure that the investment is substantial enough to warrant long-term residency benefits.
Visa Application
Visa Requirement: Foreign applicants must obtain a visa application form for the Investor Visa from the Visa section in the Department of Immigration. This step is necessary to legally reside in Sri Lanka under the Investor Visa program. The visa application must be submitted along with the required documents, including proof of investment and the developer’s confirmation letter.
Document Submission: Submit required documents, including proof of deposit in an IIA and a letter from the developer confirming the applicant’s intent to purchase an apartment from the project to the Immigration and Emigration Department of Sri Lanka. This ensures that all necessary paperwork is directed to the appropriate authority handling applications for the Investor Visa program.
Approval Process
Processing Time: The Immigration and Emigration Department oversees the approval process for the Investor Visa. The department is committed to ensuring an expedited processing timeline, with approvals typically completed within a maximum of five working days. This efficient turnaround time reflects Sri Lanka’s dedication to facilitating foreign investment and underscores the streamlined nature of the application process.
Receipt of Visa: Once approved, applicants receive their Investor Visa promptly. This visa enables them to reside in Sri Lanka according to their chosen investment threshold and duration, providing stability and long-term residency benefits in the country.
Ministerial Approval: Once documents are verified, the application undergoes ministerial approval, ensuring swift processing.
By following these steps and ensuring that all required documentation is submitted accurately, prospective investors can successfully navigate the application process for the Investor Visa program and enjoy the benefits of long-term residency in Sri Lanka.
Visa Renewal
To maintain your residency status under the Investor Visa Program, it is crucial to renew your visa before its expiration. The renewal process involves submitting a formal application to the Visa Section. This ensures that you can continue to benefit from the programmer’s advantages without any interruptions. The procedure is designed to be efficient and straightforward, allowing you to extend your stay and uphold your investment commitments seamlessly.
Benefits of the Investor Visa Program
The reintroduction of the Investor Visa program is expected to yield significant benefits for both investors and Sri Lanka:
Economic Stimulus: Increased foreign investment is anticipated to stimulate growth in the construction and real estate sectors, contributing to overall economic development.
Long-Term Residency: Investors can secure extended residency in Sri Lanka, providing stability and strategic advantages for those seeking to establish a presence in the country. Additionally, investors can easily renew the visa for another 5 or 10-year period.
Streamlined Procedures: The online application system and simplified procedures aim to enhance investor confidence and convenience, fostering a conducive environment for investment.
Strategic Implications
By reinstating the Investor Visa program, Sri Lanka demonstrates its commitment to attracting foreign investment and integrating into the global economy. This initiative not only supports economic growth but also positions Sri Lanka as a competitive destination for international investors looking to capitalize on the potential of its real estate market.
In conclusion, the Investor Visa program presents a compelling opportunity for foreign investors keen on contributing to Sri Lanka’s economic growth while enjoying the benefits of extended residency.
This initiative underscores Sri Lanka’s proactive approach to facilitating foreign direct investment and highlights its potential as a lucrative investment destination in South Asia.
Finding a Suitable Property to Invest in Sri Lanka
There are certain restrictions for foreigners buying property in Sri Lanka Here’s a step-by-step guide:
Define Your Investment Goals
Type of Property: Determine if you’re interested in residential apartments for sale, commercial properties, or investment opportunities in lands for lease. Foreigners can only purchase apartments/condominiums and lease property which comes with land ownership, such as houses or lands.
Budget: Use tools like the price meter and House Price Index on platforms such as LankaPropertyWeb for location-specific research and financing options available to foreigners.
1. Understand Restrictions for Foreigners
Ownership: Foreigners can typically purchase apartments or condominiums under the Apartment Ownership Law.
Land Ownership: Direct ownership of land by foreigners is generally restricted, but long-term leases (e.g., 99 years) are allowed.
Further details on restrictions and conditions for foreigners buying property can be found in this article.
2. Engage a Local Real Estate Agent
Reputation and Expertise: Choose a reputable agent from platforms like LankaPropertyWeb with experience in transactions involving foreigners.
Reputation and Expertise: Choose a reputable agent from platforms like LankaPropertyWeb with experience in transactions involving foreigners. Ensure you select someone with strong local property knowledge to guide you effectively through the process.
Market Knowledge: Ensure you choose an agent who is well-versed in local property market trends and legal requirements. You can find this information through the buyer and seller sections on the platform and gain further insights by visiting the Market Insights page.
3. Location Research
Popular Areas: Explore locations such as Colombo, Galle, and Negombo for their investment potential in residential and commercial properties.
Investment Potential: Consider factors like proximity to amenities, infrastructure development, and potential property appreciation. You can find the best investment options and get expert guidance on investments in the Invest section on LankaPropertyWeb.
4.Legal Considerations
Hire a Local Attorney: Consult with a local real estate attorney to navigate legal requirements, including due diligence processes and compliance with local regulations. It’s important to obtain reputable legal advice to ensure a smooth transaction. LankaPropertyWeb offers access to experienced attorneys through their Buyer and Seller service to assist with your needs.
Due Diligence: Access resources on the buyer and seller sections of platforms like LankaPropertyWeb to verify ownership documents, check for liens or disputes, and confirm necessary approvals. The legal process should involve a thorough due diligence of the ownership documents. To find a reputable attorney to conduct these checks, visit the buyer and seller assistance page on LankaPropertyWeb.
5. Due Diligence Process
Property Inspection: Conduct a thorough inspection of the property to assess its condition and identify potential issues affecting apartments for sale and lands for lease.
Tax Implications: Understand property taxes and capital gains taxes associated with ownership, available on LankaPropertyWeb.
6. Negotiation and Purchase
Negotiation Strategy: Collaborate with your agent and attorney to negotiate favourable terms for residential or commercial properties.
Purchase Process: Follow legal procedures for transferring ownership, including signing agreements and registering properties through LankaPropertyWeb.
7. Post-Purchase Considerations
Property Management: If renting out, consider property management services for tenant relations and maintenance, accessible through LankaPropertyWeb.
Residency and Visa: Understand how property ownership in Sri Lanka may affect residency and explore visa options for long-term stays.
By following these steps and utilizing resources available on platforms like LankaPropertyWeb, you can effectively navigate the process of investing in Sri Lankan property while ensuring compliance with local laws and regulations.
Investment Potential: Consider factors like proximity to amenities, infrastructure development, and potential property appreciation using tools and insights available on LankaPropertyWeb.
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