Condominium developers urge buyers to profit from Sri Lanka’s new VAT laws

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Mar 07, 2019 (LBO) – Condominium developers are urging buyers to profit from the new VAT laws as all condominiums are about to go up in price soon.
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After the 1st of April, any condominium buyer will have to pay 15 percent VAT on top of the purchase price.
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Eduard Hempel, Director of Tamba Villas says that if buyers move quickly, and get a deposit down and registered before the 1st of April, they will not have to pay the VAT. “If you put a deposit down on a condominium before the end of the month, you can immediately profit from it,” Hempel said.
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“Not only that but when you come to resell, your buyer won’t have to pay VAT, so that difference in price between a new condominium and yours will be a profit to you.
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” As per the budget proposals the VAT imposed on condominium housing units to be implemented with effect from 1 April 2019. Accordingly, exemptions will be removed for the supply of condominium housing units where the deed of the agreement relating to such supply is not executed prior to 01 April 2019.
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“Are prices about to rise otherwise?


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Well, the other important announcement in the budget is that foreign buyers will get three years resident visas if they buy a property for more than $400,000 USD,” “If that doesn’t drive demand, I don’t know what will.”
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