Capital gains tax on property: the rate changed in 2026
Resident individuals and partnerships now pay 15% on the gain, up from 10%, in force from June 2026. The department's own page had not caught up in August.
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The guide
Costs, taxes & legal
The price is rarely the whole bill. These set out each cost, which side of the table it falls on, and the rule that decides the figure, before it surprises you at the notary's desk.
In this subject
3 articles.
The full cost of buying, beyond the price
Duty, professional fees, registration, survey and search. What each line is, which side it falls on, and why the total cannot be fixed until the assessment is checked.
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What stamp duty costs, and who pays it
Four per cent, carried by the buyer, settled before registration. The part that decides the bill is not the rate but the base it is applied to.
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Other subjects
Elsewhere in the guide.
FAQ
Questions we are asked.
Where do you work?
Across Sri Lanka. The locations where we currently have properties are shown in the areas section, and the list grows as new instructions come in.
What will a property purchase cost me in Sri Lanka?
Stamp duty is 4% of the price or the Provincial Department of Revenue's assessed value, whichever is higher, payable before the deed is registered, with notary and registration costs on top. The assessed-value rule catches people out: duty is charged on the assessment when it is higher than the price you agreed.
How do you value a property?
On evidence: comparable recent sales, the stock currently competing with yours, and how long similar properties have taken to move. This is a market appraisal, not a chartered valuation; where a bank or a court needs a formal valuation, we refer you to a qualified valuer.
How long will it take?
It depends on price, location and condition. For context, Central Bank figures show condominium prices in Colombo District up 18.5% year on year in the first quarter of 2026 while sales volumes fell 15.2%. In a thinner market, correctly priced property still moves and optimistically priced property sits.
Can my property be marketed discreetly?
Yes. Quiet marketing to a qualified shortlist, with no board and no public listing, is a routine instruction. It narrows the audience and usually takes a little longer, and we are clear about that trade-off before you decide.
Can I own property here as a foreign national?
Freehold land is restricted under the Land (Restrictions on Alienation) Act No. 38 of 2014. You can own a condominium outright, and land is available on a long lease. A power of attorney, clear title and a suitable bank account cover most practical needs, and a notary should advise on your specific position.
Do you charge for a first consultation?
No. A first conversation and a market appraisal carry no charge and no obligation.