How to buy property in Ahangama
Six steps for anyone, four routes for foreigners, and one rule about money.
From first visit to registered deed
- 1
Tell us what you want.
Budget, size, beach or paddy, live in it or rent it out. We shortlist what fits and tell you what to skip.
- 2
Check the deed first.
Get copies of the deed and survey plan before any deposit. Your own lawyer runs the search at the Land Registry, normally for at least 30 years.
- 3
Walk the land.
Compare the boundaries with the survey plan. Check road access, water, electricity and anyone else's right of way.
- 4
Check what you can build.
Street line, building line, zoning, and the coast rules if you are within 300 metres of the sea. Ask an architect before you commit.
- 5
Agree the price and sign.
Keep any advance small until the legal questions are answered. The agreement should say what happens if a title problem appears.
- 6
Register it.
A notary attests the deed or lease, stamp duty is paid, and it is registered at the Land Registry. Registration is what protects you against third parties. Legal fees are commonly 1% to 3% of the price.
Can a foreigner buy land in Sri Lanka?
Not in your own name. The law bars transfers of land to foreigners, to foreign companies and to Sri Lankan companies with 50% or more foreign shareholding. There are legal ways to hold land here, and the right one depends on your plan.
What is your plan?
- What it is
- You lease the land from its Sri Lankan owner for up to 99 years, in your own name or through a company you own. The lease is registered at the Land Registry.
- Good for
- A home or villa, with no partner needed.
- Watch for
- The landowner still holds title, so the deed check matters as much as in a purchase. The old 15% land lease tax has been abolished. Stamp duty still applies, at 2% of the rent, calculated on the first 20 years for longer leases. Write your rights to build, sublet, sell the lease and renew into the deed.
- What it is
- A Sri Lankan company can hold freehold land if its foreign shareholding, direct or indirect, stays below 50%. A Sri Lankan partner holds the majority. That partner can be a lawyer, but make sure it is a good one.
- Good for
- Freehold land, hotels and other businesses.
- Watch for
- Your partner legally controls the majority, so choose someone you would trust for decades. Foreign shareholding must stay below 50% for 20 years from the transfer. If it reaches 50%, the transfer becomes void unless it is corrected within six months. If your partner is a lawyer, have a different lawyer check the title. Never let someone hold land in their personal name for you on a side letter. Nominee deals can cost you both the land and the money.
- What it is
- Foreigners can buy qualifying condominium units in their own name. The full price must arrive from abroad before the deed is signed.
- Good for
- Buyers who want title in their own name.
- Watch for
- Check the registered condominium plan and the management rules. Apartments are uncommon in Ahangama.
- What it is
- Sri Lankan citizens and dual citizens can hold freehold in their own name.
- Good for
- Sri Lankans abroad and their families.
- Watch for
- If you gave up Sri Lankan citizenship and do not hold dual citizenship, you count as a foreigner. Take your citizenship papers to your lawyer first.
Want to run a hotel, villa or cafe?
You can. Most foreigners operate through a Sri Lankan company, which pays corporate income tax at a standard rate of 30%. VAT may also apply. Renting to guests is a business, so register it, keep accounts and pay tax.
Tourist businesses register with the Sri Lanka Tourism Development Authority. Near the sea, expect to need Coast Conservation clearance first. Bring in an accountant and a company secretary from day one.
Bring your money in properly, so you can take it out later.
When you sell, banks release your proceeds against proof that the money came from abroad. Open an Inward Investment Account at a licensed Sri Lankan bank and send your purchase money there from your international account.
Send it from an overseas account in your own name.
Send building costs the same way. Development money counts too.
Keep every transfer record, bank letter and deed in one folder.
Cash, or money passed through a friend, may leave you with nothing a bank will accept.
With that paper trail, sale proceeds including capital gains can be sent back abroad. Capital gains tax applies, so ask your accountant for the current rate.
Checked November 2026. General information, not legal, tax or financial advice. Laws change, so confirm your position with an independent Sri Lankan lawyer before paying anything.