Tax on property income in Lebanon
July 17, 2017
Effective Tax Rate on Rental Income
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Global Property Guide research
Nonresidents pay tax only on Lebanese-sourced income and capital gains. Married couples are taxed separately.
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 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
|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.
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.