Tips to set up a property business in a foreign country ? Properties for sale in Sri Lanka
If you?ve been looking at properties for sale in Sri Lanka to start your own business, you will find our guide useful. Setting up any kind of business in a foreign country takes a lot of work in terms of building new networks, learning about the local culture and logistics. Read on to learn a few tips to give your property business a successful start.
Understand the local environment
The business environment in Sri Lanka is going to be entirely different from what you are used to. To truly understand the local environment, you should speak to expats who have been running their own businesses for some time. Join a few Meetups and go to conferences to mingle with the business crowd and learn about your potential clients. In the case of Sri Lanka, foreign nationals can purchase apartments over the fourth floor and they do not have to pay a capital gains tax on the sale of the property. The maximum effective rate of income tax payable on rent is 18 percent which depends on the investor?s total income in Sri Lanka.
Hire a local agent
Hire a local agent who possesses ample knowledge about international law. You would need someone who knows the local environment pretty well. This person can help you handle local officials and safely navigate local cultural norms. A valuable local agent would be an experienced lawyer or an accountant.
Form an international banking relationship
You should have sufficient understanding about currency differences to steer clear of exchange risk. The foreign exchange market tends to be volatile and if you don?t remain mindful of the changes and act accordingly, you may lose money unnecessarily. Talk to your bank about transferring money across countries. The general charges for bank transfers are rather high.
Have an exit strategy in place
You should have an exit strategy in place to salvage your investment in case of a crisis beyond your control (Eg: political crisis). Be aware of crisis indicators. Identify potential buyers in such a case and find out restrictions that might affect your ability to sell.