Guide to property taxation in Lebanon
Guide to property taxation in Lebanon
A guide to real estate taxes in Lebanon, including: rental income and tax, capital gains tax, property taxes and personal tax rates in Lebanon.
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This article is intended as a preliminary guide only and refers to some but not all elements required to consider in detail prior to starting any property dealings or due diligence. Property dealings are often complex, especially in foreign countries and we highly recommend you seek independent professional advice... read more...
Property investment and taxes are often highly complex areas in most parts of the world and is also relevant to each individual or companies situation, we highly recommend that you always obtain tax advice from a qualified tax accountant, plus seek legal, finance and residency advise before beginning to look at property or start any negotiations to buy invest rent or sell and especially before signing any contracts or documents and paying deposits.
According to PKF (Feb 2017) taxes are applicable only on Lebanese-sourced income and capital gains for non-residents. Married couples are taxed individually.
There are three categories of income in Lebanon and each category is taxed separately:
- Business income
- Employment income
- Income from movable capital
Personal Tax Rates in US$ according to PKF (Feb 2017):
1 to 3,974 2%
3,975 to 9,935 4%
9,936 to 19,869 7%
19,870 to 39,724 11%
39,725 to 79,470 15%
more than 79,471 20%
Rental income and tax
Rental income is taxed at progressive rates, and expenses are deductible from the taxable income. Deductible expenses include:
- Depreciation costs (depreciation of the building is deductible up to 5% of the rent)
- Management costs and charges (up to 5% of the rent)
- Maintenance costs.
Capital gains
Unless individual taxpayers are trading in real estate, capital gains on real estate are not subject to capital gains or profit tax. Otherwise, capital gains are principally taxed at 10%.
There are no fringe benefit taxes or local taxes in Lebanon.
Property taxes
When buying a property in Lebanon, the Ministry of Finance charges 6.7% which is made up of a six percent registration fee, a municipality fee of 0.3 percent, 0.3 percent in stamp duties, and 0.1 percent in lawyers' fees.
Article sources:
See also:
Where to buy and rent in Lebanon
Residence in Faqra, Lebanon designed by Bernard Khoury Architects
This article and the above linked artciles are not complete and are intended as preliminary guides only. These guides refer to some elements to consider prior to starting any property dealings or due diligence. Property dealings are often complex areas, especially in foreign countries and we highly recommend you seek independent professional advice... read more...
