Can Foreigners Buy Property in Sri Lanka? (2025 Rules)

The Rule: Land is for Locals. Apartments are for Everyone.

Under the Land (Restrictions on Alienation) Act, foreign citizens are heavily restricted from owning freehold land.

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1. Buying Land (The Ban)

• Direct Ownership: PROHIBITED. A foreigner cannot be the owner of a land deed.
• Company Ownership: A foreign company (or a local company with >50% foreign shares) cannot buy land.
• Update 2025: There are occasional "Strategic Investment" exceptions for massive projects (like Port City), but not for a holiday home in Galle.

2. Buying Apartments (The Loophole)

Foreigners CAN buy apartments (condominiums) above the 4th floor (sometimes even below, rules fluctuate).

• Freedom: You get a Freehold Deed.
• Tax: Historically, there was a 15% tax, but this is often waived to encourage investment. Check current budget.
• Payment: Must be paid in foreign currency (via an IIA Account).

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3. The "Lease" Option

If you really want that beach villa:

• 99-Year Lease: Foreigners can lease land for up to 99 years.
• Lease Tax: There is usually a Land Lease Tax (often 15%) payable upfront on the total lease value.

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4. Dual Citizens

• Status: Treated as Sri Lankan.
• Rights: Can buy land, apartments, anything. No restrictions. No special taxes.

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Invest smart. Luxury Apartments for Foreigners