Can I avoid the transfer fee by selling shares of a company that owns property in Lebanon?
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Short answer
No, not since Law 10/2022[1,2,3]. When an individual sells shares in a joint-stock company that mainly owns, trades or develops property, or whose property is over half its fixed assets, the seller owes a tax equal to the transfer fee, on the gain. The sale must be declared and the tax paid within two months[1,2] of the transfer, and buyer and seller are jointly liable.
Also asked as: “Is selling shares of a property company in Lebanon taxed?” · “Share deal instead of a property transfer in Lebanon” · “Tax on selling shares of a real estate company in Lebanon” · “Article 39 Law 10/2022 share sale tax”
Key facts
Why the share route no longer saves the fee
When you sell a property directly, the sale is signed and then entered at the Land Registry, and ownership passes on that entry[4]. The Land Registry fee on that sale is 3% of the value for Lebanese buyers, 5% for non-Lebanese[5]. Kallas Law Firm said in May 2026 that this rate was still in force after the 2024 and 2026 budget laws[3]. More in how much the registration fee is.
If the property sits in a company, selling the company's shares leaves the company as the registered owner. Article 39 of Law 10/2022 deals with exactly that case: the gain an individual makes on such shares now bears a tax equal to the transfer fee, on the gain[1,2,3]. Kallas Law Firm says the share-sale structure no longer avoids the fee and should not be proposed.
What the tax covers
The tax applies to individuals who sell shares in joint-stock companies whose main purpose is owning, trading or developing property, or whose property makes up more than 50% of their fixed assets[1,2,3]. It is charged on the gain, meaning the sale price minus what the shares cost, and not on the value of the property. A direct sale of built property works differently: there the fee is charged on the finance office's estimated value, rental value × 30, if higher than the declared price[1,3]. For unbuilt land, our sources do not confirm the base. For the separate tax on gains from a direct sale, see how the taxable gain is calculated.
The tax is halved when shares pass between shareholders, or between ascendants and descendants, such as parents and children[1,2,3].
A company also matters for the foreign ownership limits. A Lebanese company counts as foreign when most of its capital is foreign-owned[6,7], and the 3,000 m² limit applies to it as to a person. See whether a company with foreign shareholders can buy and buying through a Lebanese company or friend.
What is not settled
The rule above follows the consolidated text of Article 39 and Kallas Law Firm's reading of it[1,2,3]. Three points are not covered by any source we have:
- How the gain is worked out in practice when the shares were bought in lira and sold in dollars, or the other way round.
- Whether the tax uses the 3% or the 5% transfer-fee rate when the seller is not Lebanese.
- Whether limited liability companies (SARL) or offshore companies are treated the same way.
Ask a tax lawyer in Lebanon about all three before you sign anything.
Selling or buying shares in a property company
- Check the property first. Ask the company for the plot number and real estate district of each property it owns, and the section number for an apartment. Then get a recent Land Registry extract (ifadeh aqariyeh) for each one, the document a purchase normally starts with[4]. Confirm the company is the registered owner and read the charges listed. See how to get a Land Registry extract and how to check a title deed.
It depends on
- The type of company and seller. Our sources cover individuals selling shares in joint-stock companies. SARLs, offshore companies and shares sold by a company are not covered. Ask a tax lawyer.
Common questions
Is the share-sale tax charged on the property's value?
Who pays the tax if the seller does not?
Is there a reduction if I transfer shares to my children?
Sources
Checked against these sources. The numbers in the text point here.
- 1.Law 10/2022 (General Budget Law for 2022), consolidated text with amendments
Lebanese University Legal Informatics Center (legallaw.ul.edu.lb) · 15 Nov 2022 · read 17 Oct 2026
- 2.Summary of the Budget Law 2022 (Law #10)
ALDIC (Arab Lebanese Diplomatic and International Consulting?) · 15 Nov 2022 · read 17 Oct 2026
- 3.Real estate fees calculator
Kallas Law Firm · 24 May 2026 · read 17 Oct 2026
- 4.How to Buy Property in Lebanon: The Legal Steps from Verification to Inscription
Kallas Law Firm · 9 Jun 2026 · read 16 Oct 2026
- 5.قانون الموازنة العامة لعام 2022 (القانون 10/2022) المنشور في الجريدة الرسمية
Lebanese Ministry of Finance · 15 Nov 2022 · read 17 Oct 2026
- 6.Legal Framework for Ownership of Land in Lebanon
IDAL (Investment Development Authority of Lebanon) · March 2018 · read 16 Oct 2026
- 7.Legislative and Administrative Land and Property Rights Framework. Lebanon
GLTN / UN-Habitat · May 2024 · read 16 Oct 2026
Related questions
- How much is the property registration fee in Lebanon?3% of the value for Lebanese buyers, 5% for foreigners; for built property, the estimated value or the price if higher. Other charges and the 2% advance.
- Can a foreign company, or a Lebanese company with foreign shareholders, buy property in Lebanon?A company set up abroad counts as foreign, and a Lebanese one may too: sources disagree on the test. The 3,000 m² limit, the 50% rule and what to check.
- Can a foreigner get around the limits by buying through a Lebanese company or a Lebanese friend?Not safely: a company with foreign owners can count as foreign, and a friend on the deed is the registered owner. Company tests, share tax, nominee risks.
- How is the taxable gain calculated when selling property in Lebanon?Lebanon taxes the gain at 15%, cut to 1% until end-2026, after 8% off per full year held. What is known, what is not published, and how to pay.
- Are Lebanese registration fees charged on the contract price or on an estimated value?For built property, on the higher of rental value × 30 and the declared price. Where the estimate comes from, the 2% advance, and what is not known.
- What does it cost the seller to sell a property in Lebanon?Mainly capital gains tax: 1% until end 2026 unless extended, otherwise 15%. Plus tax clearances, broker fees and what the contract sets.
- How and when do I declare and pay capital gains tax after selling property in Lebanon?Declare and pay within two months of the transfer, in practice before the sale registers. Covers the rate, exemptions, fines and what is unpublished.
