Rental yield calculator · free

What will a home in Sri Lanka really earn you, after every cost and tax?

Each country’s buying duties, yearly charges and tax on rent come from our Library, read at the government’s own pages and dated. You type only what the market sets: the rent, the building’s charges, the agent and the loan.

Your home in Sri Lanka

Example: a Colombo flat bought through an Inward Investment Account. Change any figure.

Where, and who is buying

You are

The home

The rent You type

TenantDecides who must keep back tax from the rent.

Running it You type

Loan and tax

Your yield

2.94%a year after every cost and Sri Lanka tax, on the LKR 62,400,000 you put in. Before finance.
Advertised (gross)5.00%
After costs3.49%
After tax2.94%
Total to buyLKR 62,400,000

Your first year, in cash

Rent for 11 monthsLKR 2,750,000Yearly costs−LKR 575,000Tax you pay when you file−LKR 339,000In your accountLKR 1,836,000

Every figure, with its source

What went into 2.94%

Figures with a source come from our Library, read at the official page on the date shown. The rest are yours.

Stamp duty, Western Province (Colombo, Gampaha, Kalutara)LKR 2,399,000Department of Revenue · 26 Oct 2026
Land Registry registrationLKR 1,000Registrar General's Department · 26 Oct 2026
Management corporation chargesLKR 240,000You typed it
Council rates billLKR 30,000You typed it
Agent’s fee for finding a tenantLKR 250,000You typed it
Stamp duty on the tenancy agreementLKR 55,000Inland Revenue Department · 26 Oct 2026
Sri Lankan income tax on rent less costsLKR 339,000Inland Revenue Department · 26 Oct 2026

If the rent or the empty months change

Your yield after costs and tax, with the rent 10% lower to 10% higher.

2.64%-10%
2.79%-5%
2.94%Yours
3.09%+5%
3.24%+10%

One more empty month: 2.67%.

Rules to know in Sri Lanka

In Sri Lanka a foreigner may buy a condominium unit on any floor, provided the entire value is paid upfront through an inward foreign remittance before the deed of transfer is executed; the old fourth-floor rule was removed with effect from 1 April 2018 (Land (Restrictions on Alienation) (Amendment) Act No. 21 of 2018, s.2). Land · 26 Oct 2026

In Sri Lanka rent and sale proceeds of property bought by a non-resident through an Inward Investment Account are credited back to that account, and the account may remit money abroad to the holder without a set yearly limit (Foreign Exchange Regulations No. 2 of 2021, Gazette 2213/35, Part I A.4(1); CBSL Directions No. 15 of 2021, para 5(a)). Foreign Exchange Regulations No. 2 of 2021 · 26 Oct 2026

How it works

Official rules, your figures, nothing guessed.

Advertised (gross) yield is a full year’s rent divided by the price. After costs takes off the months empty and every yearly cost, and divides by the price plus every buying cost. After tax also takes off the tax on the rent in the country where the home is, worked out with that country’s own bands and allowances for someone in your position.

Tax at home on the same rent: our free Tax guide works it out for ten home countries. Loan interest is shown separately, as the yield on your own money.

A planning tool: it works the yield out from the published rules and the figures you type. Currency movement, price growth, furnishing and the cost of selling sit outside it, and an advisor checks every figure for your own unit and date.

The yield is a starting point

Talk through this property’s numbers with an advisor.

A free 15-minute call: an advisor checks the rent evidence, the building’s charges and the title behind the yield, and tells you what the figure rests on.

Talk to an advisor