Indian citizens and OCI cardholders in Sri Lanka can buy and sell residential and commercial property in India, other than agricultural land, plantations and farmhouses, without permission. Sri Lankan citizens who are not OCI cardholders need prior RBI permission to acquire or transfer immovable property in India. Sales are taxed in India, the buyer deducts TDS, and proceeds can be repatriated within FEMA limits.
- Document route
- Sri Lankan notary, Ministry of Foreign Affairs attestation, then Indian mission attestation
- Time difference
- IST and Sri Lanka time are the same all year
- Rules
- FEMA (Non-Debt Instruments) Rules 2019
- Not allowed to buy
- Agricultural land, plantation, farmhouse
Buying & Selling Property from Sri Lanka: how it works
For a purchase, we search the title for at least 30 years, check approvals and encumbrances, review the builder or seller agreement, and make sure payment comes from your NRE or NRO account or by inward remittance. Completion can be done through an attested power of attorney, so you need not fly in for the registration.
For a sale, we confirm your status under FEMA, draft the sale deed, help you obtain a lower TDS certificate where the actual gain is small, and plan the repatriation with Forms 15CA and 15CB. Where the seller is a Sri Lankan citizen who inherited the property, we first deal with the RBI permission so that the sale is valid.
What clients in Sri Lanka should know
- Buyers of property from an NRI must deduct TDS on the capital gain at the rates for non-residents, not the 1 percent resident rate.
- Agricultural land can be inherited by NRIs and OCIs but not bought.
- Keep purchase records and payment trails; they decide the tax on sale and the repatriation limit.
Step by step from Sri Lanka
Video consultation
A call at a time that suits Sri Lanka, after we have read your documents.
Documents signed in Sri Lanka
Sri Lankan notary, Ministry of Foreign Affairs attestation, then Indian mission attestation
Work in India
Our team files, appears and follows up in India, and shares scans of everything filed.
Result and handover
Certified copies and originals are couriered to you in Sri Lanka where needed.
The full guide
This page covers what changes when you are in Sri Lanka. For the law, the documents and the step-by-step procedure, read our main page on Buying & Selling Property, or see all services for clients in Sri Lanka and the NRI Property Law practice area.
Questions from clients in Sri Lanka
Can a Sri Lankan citizen of Indian origin buy property in India?
If they hold an OCI card, generally yes, like an NRI. Without OCI, RBI permission is needed.
How much sale money can I send to Sri Lanka?
NRIs can repatriate up to USD 1 million per financial year from an NRO account after tax, with CA certification.
Do I need to be in India for the registration?
No. An attested power of attorney lets a relative or our nominee sign for you.