Below is a concise guide to buying luxury beach villas in Sri Lanka — prime locations, what to expect on price and tenure, key legal/tax points for foreigners, recommended due‑diligence steps, and where to look for listings.

1. Best areas to consider (why they’re popular)

• South Coast (Galle / Unawatuna / Ahangama / Weligama / Mirissa / Tangalle): top for luxury villas, surfing, restaurants, strong short‑let market and boutique resort developments. Popular with buyers seeking lifestyle + rental income. (cntraveler.com)
• West Coast (Bentota / Kalutara / Negombo): easy access to Colombo and Bandaranaike Airport; established luxury resorts and villa developments. (cntraveler.com)
• East Coast (Trincomalee / Pasikudah / Nilaveli): growing market with long sandy bays and quieter high‑end opportunities (seasonal differences vs. south coast). (cntraveler.com)

2. Typical price ranges (ballpark)

• Smaller luxury villas (2–3 BD) in good beachfront locations: roughly LKR 40–150 million (approx. USD 100k–375k) — varies widely by exact location, finish, land size, and whether direct beachfront.
• Larger beachfront estates (4+ BD, private pool, grounds): often LKR 150 million and up (several hundred thousand USD to >USD 1m for premium sites). Example listing: beachfront Tangalle villa advertised around LKR 155 million. (ceylonestateagents.com)

3. Foreign ownership / tenure — crucial rules (most important practical facts)

• Foreigners cannot generally purchase freehold land in Sri Lanka. Common, lawful options are:
  • Buy an apartment/condominium unit (permitted under the Apartment Ownership law when purchase funds are remitted through the banking system). (colomborealtors.lk)
  • Long‑term lease of land (up to 99 years) — widely used for villas and projects; leases are registered and commonly accepted. (TPP.lk)
  • Acquire via a locally incorporated company (with required Sri Lankan ownership thresholds and compliance) — typical for larger developments. (Desaram.com)
• Don’t assume freehold is available for foreigners; plan structure (lease vs. company vs. condominium) before committing. (Desaram.com)

4. Taxes & transaction costs to budget for

• Stamp duty, transfer fees and legal fees (lawyer typically 2–3% of transaction value). Stamp duty scale applies to purchases; lease registration carries smaller fixed fees. (LankaProperty.info)
• VAT can apply to new apartment sales and some primary market developments (recent years have seen VAT reintroduced/adjusted — check current VAT rate for developer sales). (LankaProperty.info)
• Capital Gains Tax (flat rate) and income tax on rental income — check current rates and exemptions when planning investment exit. (LankaProperty.info)

5. Due diligence checklist (must do before signing)

• Confirm title/tenure (freehold vs. lease; length and registration status of lease). Obtain land registry extracts. (LankaLand.com)
• Confirm developer/owner permits and environmental approvals (coastal zone rules can affect rebuild/expansion).
• Funds route: ensure purchase funds are remitted via an approved inward foreign remittance channel if you are a foreign buyer (necessary for condominium purchases and proper repatriation). (TPP.lk)
• Check tax liabilities (VAT on primary sales, stamp duty, CGT), local property management and security of rental income. (LankaProperty.info)
• Use a Sri Lankan property lawyer to review: title, encumbrances, lease terms (if leasehold), corporate structure (if buying via a company), and foreign‑exchange documentation.

6. How to search and find good villas

• Reputable local real‑estate firms and brokers that specialize in luxury coastal properties (examples: local realtor listings and established agencies); international property portals also list villas. Example listing site shown for Tangalle beachfront villa. (ceylonestateagents.com)
• Consider developers with established hospitality brands (some projects are integrated with boutique resorts or managed rental programs) — these can simplify short‑let management but check fees and contract terms. (cntraveler.com)

7. Practical buying steps (summary)

• Shortlist locations and properties → instruct local lawyer and surveyor → verify title/tenure and approvals → negotiate conditional sale agreement / lease terms → arrange inward remittance & tax planning → complete transfer/lease registration and final settlement → engage property management for rentals or handover.

8. Risks & practical notes

• Coastal regulations, seasonal tourism cycles, and infrastructure differences between regions will affect rental yields and resale demand. (cntraveler.com)
• Exchange control and repatriation: use the correct inward remittance channels and document trails to ensure ability to repatriate sale proceeds or rental income. (TPP.lk)

If you’d like, I can:

• Pull current luxury villa listings in a specific area (e.g., Mirissa / Tangalle / Bentota), with price, tenure (freehold/lease/condo) and contact details; or
• Summarize steps and costs for a foreign buyer in detail for one particular property or project.

Which would you prefer?