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FAQ

Landlords in Sri Lanka should be aware of the following taxes when leasing or selling property:

•Stamp Duty: A 1% stamp duty is payable when rent is collected, applicable to leases for both foreigners and locals.

•Value-Added Tax (VAT):

•Leasing: VAT at 15% is applicable if the lease is to a VAT-registered person, except for residential premises.

•Sales: The sale of land and buildings (excluding residential premises) is subject to VAT at 15% on the property value.

It’s essential to stay informed and compliant with these regulations. Consult a tax professional for personalised advice.

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