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Archived Articles  Simeon Mitropolitski is a Canadian analyst, of Bulgarian descent, and former syndicated columnist with the Bulgarian News Agency (BTA). He is the author of several hundred articles dealing with the hot political and economic topics, both Bulgarian and international. ("A Royal Solution." World Press Review. June 1997, provides English versions). He was part of the first group of Bulgarian intellectuals that began the opposition movement that finally put an end to the communist regime in the country, and in 1996-1997 participated in the international monitors' teams during the elections in several Balkan countries - Romania, Albania and Bulgaria. In 1999 he was among the few Bulgarian journalists that supported NATO military operation against Yugoslavia. In 2002 Simeon and his family emigrated from Bulgaria to Canada where they now live in Montreal, Quebec.
Global Real Estate Project
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Sri Lanka: Double prices for foreignersSri Lanka is an island in the Indian Ocean just south offshore India, and we expect that it will soon make headlines for those interested in international relations. Many factors have so far stopped foreigners from coming here en masse. Civil conflict and political uncertainties usually come to mind when people talk about this country. Positive recent developments show that these obstacles may soon be removed. Local population is friendly toward foreigners. Acts of violence toward those who pass their vacations are rare. On the other hand, the government makes little to attract foreigners. Example for this unfriendliness, let's hope it's only a temporary one, is the special tax for foreigners, a tax that doubles the price of residential properties. It wasn't clear why the government decided to impose this prohibitive tax. Was it because it feared particular kind of foreigners and didn't deem necessary to provide some exceptions for all the rest? Or was it because it thought it might bring more incomes from people that nevertheless would come and settle down? In anyway the result was the 100% tax on the values of any property bought by foreigners, which went in addition to 3% legal tax. So if a foreigner decided to buy house for $50,000, the taxes will be calculated at $51,500. Of course one obvious way to bypass this tax is by providing false price to the authorities. This seems easy enough only for those who have misleading information about Sri Lanka. In fact, it's very difficult to make such move in a country where price ranges are known and alternative options for small investors are provided. Speaking about alternatives, 99-year lease is certainly one of them. The tax falls to 7% and lessees enjoy their properties in full. Another way of having property without paying high taxes is by owing a local company and by arranging the transfer on its name. This option sounds good, but in reality foreign investors may be required to invest no less than $250,000 in order to qualify as investors. Yet another alternative is not to buy or make long-term lease, but to lease instead a property for several months a year. In fact many foreigners make exactly this decision. Living comfortably in Sri Lanka for people accustomed to colder and drier climates may be problematic between April and October. On the other hand, those who want to escape northern winters will probably look for a place under the sun between November and March. Good step in the right direction is that the government is currently discussing special plan for foreign retirees that will eliminate over-taxation and will give the country the place it deserves given its climate, location and friendly population.
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See also the directory of companies providing real estate services in, and general real estate information of Sri Lanka.
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