Lebanon: Taxes and Costs
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Rental income tax is moderate in Lebanon
INDIVIDUAL TAXATION
Non-residents pay tax only on Lebanese-sourced income and capital gains. Married couples are taxed separately.
INCOME TAX
There are three categories of income in Lebanon and each category is taxed separately: business income, employment income, and income from movable capital.
Business income are those income derived from industrial, commercial and professional activities. It includes royalties, rent, and income from the exercise of liberal professions.
BUSINESS INCOME TAX |
|
| TAXABLE INCOME, LBP (US$) | |
| Up to 9 million (US$6,000) | |
| 9 million - 24 million (US$16,000) | |
| 24 million – 54 million (US$36,000) | |
| 54 million – 104 million (US$69,333) | |
| Over 104 million (US$69,333) | |
| Source: Global Property Guide | |
RENTAL INCOME
Rental income is considered as business income and taxed at progressive rates. Income-generating expenses are all deductible when computing for the taxable income. Deductible expenses include depreciation costs (depreciation of the building is set at 2.5% per annum), expenses incurred by the landlord on behalf of the tenants (not exceeding 20% of the rental proceeds), and other management costs and charges for administering lease properties on behalf of the tenants (not exceeding 10% of the proceeds).
CAPITAL GAINS
Unless individual taxpayers are trading in real estate, capital gains on real estate are not subject to capital gains or profit tax.
PROPERTY TAX
Real Estate Tax
Real estate tax is levied on the annual net rental income of the property.
REAL ESTATE TAX |
|
| TAX BASE, LBP (US$) | |
| Up to 6 million (US$4,000) | |
| 6 million – 20 million (US$13,333) | |
| 20 million – 40 million (US$26,667) | |
| 60 million – 60 million (US$40,000) | |
| 100 million – 100 million (US$66,667) | |
| Over 100 million (US$66,667) | |
| Source: Global Property Guide | |
CORPORATE TAXATION
INCOME TAX
Income and capital gains realized by corporations are taxed at a flat rate of 15%. Income-generating expenses are all deductible from the gross income.
Lebanon - more data and information
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