How is the taxable gain calculated when selling property in Lebanon?

Also asked as: “How is capital gains tax calculated on Lebanese property?” · “What cost basis is used for property sale tax in Lebanon?” · “Lebanon capital gains holding period deduction” · “Can a revaluation reduce my property gains tax in Lebanon?”

Who pays the tax on the gain#

The tax applies to gains on disposing of real estate owned by three groups: people and companies not subject to income tax, people and bodies with special exemptions, and individuals subject to income tax whose property is not a business asset^[1]. What decides it is your tax status. The passage of the law we read contains no residence or nationality test. In 2024, the Finance Ministry's implementing decision applied the rate to such individuals "regardless of the transferor's place of residence or nationality"^[4]. More in non-resident and foreign sellers.

If you run a business taxed on a lump-sum or estimated profit, a different item of the same article taxes gains on fixed assets, including real estate, at 15%. The temporary 1% sentence is not written in that item^[1]. Ask a tax adviser before assuming 1% applies to you.

What is not published: the price and the cost#

The law taxes "the gain", but no source we read says which sale price counts. It could be the price written in the deed, or the registry's estimated value, which for transfer fees on built property is rental value × 30, if higher than the declared price^[2,3]. We also found nothing on how a purchase made in USD or in old Lebanese pounds before 2019 is converted, or whether renovation and improvement costs can be deducted. For how the registry values property for fees, see estimated value versus declared price.

One nearby rule does define the gain. For shares in companies that mainly own property, the law taxes the gain as sale price minus acquisition cost^[2,3,5]. That rule is written for shares, so do not assume it carries over to a direct sale of property.

Until 31 December 2020, owners could revalue their property through an appraisal expert and pay 3% on the uplift. That window has closed^[3]. We could not confirm whether a revaluation made then resets the cost for a later sale. If you used it, bring the papers to a tax lawyer.

How the holding-period relief works#

For each full year between acquiring the property and selling it, 8% of the gain is deducted. After 12 full years or more, the gain is exempt^[1,2]. The table below is our own arithmetic from that rule.

The exemption carries a proviso: "provided the difference is paid in the year of transfer"^[1,2]. No source explains what that means. Nor does any source explain how years are counted for inherited property or property bought in parts, or how the deduction combines with the 1% rate. Ask a tax lawyer to apply it to your dates.

Which rate: 15% or 1%#

The 1% rate was struck down once and then re-enacted. Law 330/2024 wrote it into the Income Tax Law to 31 December 2026, which is why older pages give different end dates^[1,4,6,7]. The law text covers the whole item, though at least one tax summary, from PwC, has read the 1% as applying only to non-residential property^[1,2]. It is also unresolved whether the date that counts is the contract date or the registration date. For a sale near the end of 2026, confirm with the Ministry of Finance or a tax lawyer. More in 15% or 1%.