What is the capital gains tax on selling property in Lebanon, 15% or 1%, and until when?

Also asked as: “What happens to the capital gains rate on property sales in Lebanon after 31 December 2026?” · “Does the 1% capital gains rate apply to all property sellers in Lebanon?” · “Lebanon property capital gains tax rate 2026” · “Is the 1% property gains tax in Lebanon temporary?”

Who pays 15% and who gets 1%#

Item (j) taxes the gain at 15% when the property belongs to one of three groups^[1]. The groups are people or companies not subject to income tax, people with permanent, special or exceptional exemptions, and individuals subject to income tax whose property is not a business asset. Law 330/2024 cuts the rate for that whole item to 1% until 31/12/2026, and the law text does not limit the cut to non-residential property^[1,2]. PwC reads the 1% as applying only to non-residential property. We found no Ministry of Finance statement saying which reading it follows.

A separate item (b) taxes at 15% the gains on fixed assets, real estate included, of people and companies taxed on a lump-sum or estimated profit basis. The 1% sentence sits in item (j), not in item (b)^[1]. Read that way, a seller who runs such a business stays at 15%, but this has not been confirmed, so ask a tax adviser.

The passage of item (j) we read has no test of residence or nationality^[1]. The 2024 implementing decision said outright that the 1% applied regardless of the seller's place of residence or nationality^[3]. Nationality matters for the buyer's registration fee instead: 3% of the value for Lebanese buyers, 5% for non-Lebanese^[4]. More in capital gains for non-residents and foreign sellers.

Why older pages give different end dates#

The 1% was struck down once and then re-enacted^[1,3,5,6]. The 2024 Budget Law (Law 324/2024, Art. 86) first set 1% until 31/12/2026, and on 4 April 2024 the Constitutional Council deleted that end date because it breached the annual-budget principle. Ministry of Finance decision 644 then applied the 1% through 31/12/2024. Law 330/2024 of 4 December 2024 then wrote 1% until 31/12/2026 into the Income Tax Law itself.

A page from mid-2024 may therefore give you 1% to 31/12/2024 (2024 rule)^[3]. Law 330/2024 has replaced that rule. We found no 2025 or 2026 implementing decision that replaces decision 644^[1,3,5,6].

What happens after 31 December 2026#

Kallas Law Firm said in May 2026 that the rate returns to 15% from 1 January 2027 unless a later budget law extends the cut^[1,2]. No source we found has checked whether the draft 2027 budget does so. It is also unclear whether the date that counts is the day the sale contract is concluded or the day it is registered. If your sale straddles the year end, ask the Ministry of Finance (Revenue Directorate) or a Lebanese tax lawyer before you rely on 1%.

Exemptions and the holding-period cut#

Gains on an individual's primary places of residence are exempt from the item (j) tax, up to two dwellings^[1,2]. No source says what proves "primary residence" for an owner who lives abroad or spends only summers in Lebanon. See the main-residence exemption.

For other property, 8% of the gain is deducted for each full year you held it, and the gain is exempt after 12 full years^[1,2]. The law adds "provided the difference is paid in the year of transfer", and no source explains that proviso or how the deduction combines with the 1% rate. More in the 12-year holding rule.