Guide for Sri Lankans in Europe: Tax liability & e-filing Y/A 2025/26 on taxcalculator.lk. Learn residency rules, filing requirements, and step-by-step IRD e-filing from abroad.
Introduction
Sri Lankans living in Europe, whether with or without citizenship, need to understand their Sri Lanka tax obligations for the Year of Assessment (Y/A) 2025/2026. Tax residency, filing liability, and e-filing requirements have specific rules for expats, particularly when it comes to worldwide vs. Sri Lankan-source income.
This guide is tailored for Sri Lankan citizens residing in countries like Germany, France, Italy, United Kingdom, Norway, Switzerland, Netherlands, Sweden, and Spain. It explains tax residency rules, filing thresholds, and how to submit your income tax return online using the IRD portal from overseas.
Understanding Sri Lankan Tax Residency
Determining your tax residency is the first step in assessing your filing liability:
- Resident: You are a resident if physically present in Sri Lanka for 183 days or more during any 12-month period within the Y/A (April 1, 2025 – March 31, 2026). Residents are taxed on worldwide income, including foreign earnings. From April 2025, foreign service income is taxed at 15%.
- Non-Resident: Typically, Sri Lankans living in Europe are non-residents unless they meet the 183-day threshold. Non-residents are taxed only on Sri Lankan-source income, such as rental income from local property or bank interest.
Note: Loss of Sri Lankan citizenship does not affect taxation if you have Sri Lankan-source income. Non-citizen former residents follow the same rules as non-resident citizens.
| Status | Tax Scope | Key Thresholds |
|---|---|---|
| Resident (183+ days in SL) | Worldwide income | LKR 1.8M annual; Personal Relief LKR 1.2M |
| Non-Resident (Citizen or Not) | Sri Lankan-source only | Any taxable local income (e.g., rent, interest) |
Filing Liability for Y/A 2025/2026
For the Y/A 2025/2026:
- Residents must file if their monthly earnings exceed LKR 150,000 (annual LKR 1,800,000). They declare worldwide income, assets, and liabilities as of March 31, 2026.
- Non-Residents file only if they have Sri Lankan-source income, like rent, dividends, or bank interest. Pure non-residents with no Sri Lankan income generally do not need to file, though filing may be recommended for future compliance or audit situations.
Example: A Sri Lankan expat living in the UK or Germany earning only foreign employment income does not have to pay Sri Lankan taxes but must report local income such as property rent.
Step-by-Step Guide: How to File Sri Lankan Tax Return from Europe
Filing your income tax return from abroad is simple using the IRD e-filing portal.
Step 1: Register or Obtain a TIN
- Visit the IRD e-Services portal > Taxpayer Registration.
- Use NIC or passport to register. Non-residents/foreigners must use passport.
- You will receive a TIN and PIN necessary for filing.
Step 2: Log in and Select Return
- Login using TIN and PIN.
- Select Individual Income Tax (IIT) for Y/A 2025/2026 (April 1, 2025 – March 31, 2026).
- Choose Simplified return (for employment income, interest, solar payments) or Standard return.
Step 3: Declare Income & Reliefs
- Residents declare all income worldwide, including foreign employment, dividends, interest, and rentals.
- Non-residents declare only Sri Lankan-source income.
- Include personal reliefs, deductions, and WHT credits.
Step 4: Assets and Liabilities
- Residents report assets and liabilities as of March 31, 2026.
- Non-residents typically skip this unless dealing with property or other taxable local assets.
Step 5: Submit & Upload Supporting Documents
- File online anytime before deadlines.
- Deadlines can vary; for prior years, extensions like November 30 may apply.
- Upload proofs later if requested.
Step 6: Quarterly Instalments (if applicable)
- Self-assess tax payable if you are an instalment payer.
Pro Tip: Keep digital copies of rental agreements, bank statements, and foreign income proof to avoid delays.
Countries Covered: Sri Lankan Expats in Europe
This guide is particularly useful for Sri Lankans living in:
- United Kingdom (London, Manchester, Birmingham)
- Germany (Berlin, Munich, Frankfurt)
- France (Paris, Lyon, Marseille)
- Italy (Rome, Milan, Florence)
- Netherlands (Amsterdam, Rotterdam, The Hague)
- Sweden (Stockholm, Gothenburg)
- Norway (Oslo, Bergen, Stavanger)
- Switzerland (Zurich, Geneva, Basel)
- Spain (Madrid, Barcelona, Valencia)
Keywords like “Sri Lankan expat income tax filing” and “IRD e-file overseas non-resident” are relevant for SEO targeting these countries.
Common FAQs for Sri Lankans Filing from Europe
Q1: Do I have to file if I earn only overseas income?
A1: Only if you are a resident (183+ days in SL). Non-residents filing is required only for Sri Lankan-source income.
Q2: Can I e-file from any country in Europe?
A2: Yes. The IRD portal is accessible worldwide with a TIN and PIN.
Q3: What is the deadline for filing Y/A 2025/2026 from abroad?
A3: Standard deadlines apply; check IRD updates. Prior year filings may have extended deadlines like November 30.
Q4: Are foreign service earnings taxable?
A4: Yes, for residents, at 15% from April 2025. Non-residents are exempt unless earned in Sri Lanka.
Q5: Do I need to declare overseas assets?
A5: Only residents. Non-residents report only Sri Lankan-source assets.
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Internal Links & Tools
For convenience, you can use our Sri Lanka Tax Calculators to estimate your liability:
SEO Tip: Interlinking these calculators boosts time on site and relevance for queries like “Sri Lanka tax return from overseas 2025/2026”.
Summary
- Residents: 183+ days in SL, pay tax on worldwide income, declare assets & liabilities.
- Non-residents: Taxable only on Sri Lankan-source income.
- E-filing: Mandatory for eligible individuals using IRD portal.
- Thresholds: LKR 1.8M annual for filing; personal relief LKR 1.2M.
By following this guide, Sri Lankans living in Europe can comply with Sri Lanka’s tax requirements, e-file efficiently from abroad, and avoid penalties.
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