Tax on property income in Lebanon
Effective Tax Rate on Rental Income |
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| Monthly Income | US$1,500 | US$6,000 | US$12,000 |
| Tax Rate | 3.03% | 5.49% | 7.74% |
| Click here to see a worked example | |||
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Source: Global Property Guide research |
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INDIVIDUAL TAXATION
Nonresidents pay tax only on Lebanese-sourced income and capital gains. Married couples are taxed separately.
INCOME TAX
There are three categories of income in Lebanon and each category is taxed separately: business income, employment income, and income from movable capital.
RENTAL INCOME
Rental income is taxed at progressive rates. Income-generating expenses are all deductible when computing for the taxable income. Deductible expenses include depreciation costs (depreciation of the building is deductible up to 5% of the rent), expenses incurred by the landlord such as management costs and charges (up to 5% of the rent) and maintenance costs.
REAL ESTATE TAX |
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| TAX BASE, LBP (US$) | |
| Up to 20 million (US$13,245) | |
| 20 million - 40 million (US$26,490) | |
| 40 million - 60 million (US$39,735) | |
| 60 million - 100 million (US$66,225) | |
| Over 100 million (US$66,225) | |
| Source: Global Property Guide | |
CAPITAL GAINS TAX
Capital gains tax is levied at a flat rate of 10%. Acquisition costs and improvement costs are deductible when calculating taxable gains.
PROPERTY TAX
CORPORATE TAXATION
INCOME TAX
Income and capital gains realized by corporations are taxed at a flat rate of 17%. Income-generating expenses are all deductible from the gross income.