Frequently Asked Questions

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Lebanon
What is the population of Lebanon?
What languages are used in Lebanon?
What is the weather like in Lebanon?
What are the official public holidays in Lebanon?
How can I get statistical data about the Lebanese economy?

Business Environment
Why should I invest in Lebanon?
Is there any control or restriction on movement of foreign currency?
Are there any laws restricting foreign ownership in Lebanon?
Are foreigners restricted from operating certain types of business?
Does a foreign investor need a Lebanese partner?
Can foreign investors own real estate property in Lebanon?
What are the procedures for setting up a company in Lebanon?
What are the types of business entities permitted in Lebanon?
What are the procedures required from a foreign company to register in Lebanon?
Did Lebanon sign any treaty or agreement to avoid double taxation or promote investment with Arab and non-Arab countries?
Is there a mechanism for dispute settlement in Lebanon?
Does Lebanon have free trade zones?

Taxes
What is the income tax rate in Lebanon?
What is the corporate tax rate in Lebanon?
What is the tax rate on capital gain?

Labor Market
Are there any restrictions on the employment of foreign citizens?
Is it difficult to get a work permit for Lebanon?
Will I encounter any problem when recruiting qualified workforce in Lebanon?
What is the average salary in Lebanon? Is there a minimum wage?
What are the laws pertaining to overtime work in Lebanon?

Investment Development Law 360
What is Investment Development Law 360?
What are the Investment Zones?
Are the incentives and exemptions offered through the Investment Development Law 360 available to anyone?
Is it difficult to obtain the permits and licenses required for investment projects?
Does the Investment Development Law provide similar benefits and incentives to existing projects?
What will it cost to apply for a Package Deal Contract? Investment Project?
Once an application for an investment project or a package deal contract has been submitted to IDAL, how long does it take for a decision to be reached?

IDAL
What services does IDAL provide to potential and existing investors?
Does IDAL provide the same services for all investors alike regardless of their nationality?
What guarantees and protection does IDAL provide for foreign investors?
Who can benefit from "Export Plus" Program?
How can I find out about Lebanese firms looking for foreign investors?
I have a project and I am looking for a partner. Can IDAL help me?
Who should potential investors contact?
How do I request a copy of a specific publication?

Lebanon

What is the population of Lebanon?
Lebanon's population is estimated at around four million, with 29% of the total under 15.

What languages are used in Lebanon?
Arabic is the official language. French and English are widely spoken and commonly used. Armenian is spoken by a small percentage of the population.

What is the weather like in Lebanon?
Lebanon enjoys a typical Mediterranean climate. The winters are mild on the coast and snowy in the mountains, while the summer months are hot on the coast and mild in the mountains. On average, Lebanon enjoys around 300 days of sunshine a year.

What are the official public holidays in Lebanon?
The schedule of the official pubic holidays is as follows:

How can I get statistical data about the Lebanese economy?
IDAL's primary objective is to supply investors with quality, timely and easily-accessible information to facilitate their investments in Lebanon. To this effect, IDAL is setting up the Investors Support and Information Center (ISIC) to provide all required statistical data, economic, legal and sector-specific information.

Business Environment

Why should I invest in Lebanon?
There are many reasons to invest and to do business in Lebanon: Lebanon offers a strategic location with direct access to the markets of Middle East, a highly educated labor force, a strongly business-minded economy and a multi-cultural lifestyle.
More specifically, Lebanon offers a wide range of opportunities for investment in all major sectors mainly in tourism, agriculture, industry, agro-industry and IT / Technology / Telecommunication / Media.

Is there any control or restriction on movement of foreign currency?
No. Lebanon allows full repatriation of capital, profits and dividends. There are no restrictions on the inflow and outflow of funds.

Are there any laws restricting foreign ownership in Lebanon?
No. Lebanon offers a well-developed legal system, which grants Lebanese and non-Lebanese equal rights.

Are foreigners restricted from operating certain types of business?
Lebanese Law does not differentiate between local and foreign investors, except in land acquisition and, in some cases, there are certain restrictions imposed on foreigners establishing companies in Lebanon. With only a few exceptions in sectors such as real estate, banking, insurance and commercial representation, foreign investors are allowed to own 100% shares in Lebanese companies.

Click here to learn more about Foreign Acquisition of Property Law.

Does a foreign investor need a Lebanese partner?
No. Foreign entities can operate under the same conditions as Lebanese businesses, provided they are registered with the commercial registry. Foreigners can fully own a company, except in the case of a joint-stock company (S.A.L), a holding or an offshore company, where there are conditions for Lebanese involvement.

Click here to learn more about Incorporation Law.

Can foreign investors own real estate property in Lebanon?
Yes. However, foreigners wishing to acquire real estate property of more than 3,000 square meters are required to obtain the approval from the Lebanese Council of Ministers.
In addition, restrictions on foreign ownership exist in the following cases:
- Real estate property at the Lebanese borders, which by law fall within three kilometers from the borders; and
- More than 10% of the total surface area of the Mohafazat of Beirut and more than 3% of the total surface area of other Mohafazats.

Click here to learn more about Foreign Acquisition of Property Law.

What are the procedures for setting up a company in Lebanon?
All companies established in Lebanon must abide by the Lebanese Commercial Code and its regulations and are required to retain the services of a lawyer. The incorporation procedure is relatively simple. All required documents – signed and notarized – should be submitted to the Commercial Registry.

Click here to learn more about the Incorporation Law.

What are the types of business entities permitted in Lebanon?
The types of business entity that may be registered in Lebanon are:
- Sole proprietorship
- General partnership
- Limited partnership
- Joint stock company
- Limited liability company
- Holding company
- Offshore company

Click here to learn more about the Incorporation Law.

What are the procedures required from a foreign company to register in Lebanon?
Foreign companies may operate in Lebanon through local branches or representative offices provided they obtain a "Registration Certificate" from the Ministry of Economy and Trade. Branches should register at the Commercial Registry. If the foreign entity wishes to engage in trading activities, it must also be registered at one of the four Chambers of Commerce, Industry and Agriculture (Beirut, Zahleh, Tripoli and Sidon).

Did Lebanon sign any treaty or agreement to avoid double taxation or promote investment with Arab and non-Arab countries?
Yes. Lebanon has concluded several promotion investment agreements as well as treaties for the avoidance of double taxation with Arab and non-Arab countries.

More information on such agreements can be found on the Ministry of Finance's website.

Lebanon is a member of the Euro-Med partnership. Lebanon is a signatory to the Greater Arab Free Trade Area (GAFTA) and European Free Trade Association (EFTA). In addition, Lebanon is at the negotiations stages to accede to the World Trade Organization (WTO).

More information on the above agreements can be found on the Ministry of Economy & Trade website.

Is there a mechanism for dispute settlement in Lebanon?
Yes. In 1995, the Chamber of Commerce, Industry and Agriculture of Beirut and Mount Lebanon has created the Lebanese Arbitration Center to settle all disputes of internal and international character by using procedures for arbitration or optional conciliation. Its statutes are similar to those of the International Chamber of Commerce in Paris. Lebanon has also endorsed the New York Convention of 1958 relating to international arbitration.

Does Lebanon have free trade zones?
Yes. Lebanon has two free zones in the Port of Beirut and the Port of Tripoli. The free zones provide a range of benefits including a 10-year corporate tax holiday, elimination of custom duties, etc. 

Taxes

What is the income tax rate in Lebanon?
The income tax is applied at progressive rates depending on the income bracket. It ranges from a minimum of 3% to a maximum of 21%.

What is the corporate tax rate in Lebanon?
The income tax on corporate profit varies depending on the legal stature of the company. Sole proprietorship and general partnership are taxed at progressive rates of 4% to 21%. Capital companies such as joint stock corporations, limited partnerships and limited liability companies are taxed at a flat rate of 15%.

What is the tax rate on capital gain?
The tax rate on capital gain is equal to 10%.

Labor Market

Are there any restrictions on the employment of foreign citizens?
No. All foreigners wishing to work or establish a business in Lebanon require a resident permit and a work permit which are issued from the Ministry of Labor. 

Is it difficult to get a work permit for Lebanon?
No. Work permits are usually authorized for a period of one year. IDAL can provide investors with all necessary information regarding issuing work permit and can facilitate the issuance of work permits through the One-Stop-Shop.

Will I encounter any problem when recruiting qualified workforce in Lebanon?
No. Lebanon's workforce is considered among the best educated and trained in the region. Lebanon's literacy rate is among the highest in the Arab world standing at around 90%. Lebanon's top-notch universities attracted students from across the Middle East region. Universities, vocational and technical colleges and high schools are actively involved in offering training partnerships to support the educational needs of businesses.

What is the average salary in Lebanon? Is there a minimum wage?
The official minimum wage is set at LBP 300,000 per month (or approximately US$ 200). Average salaries and wages vary depending on the sector and the profession.

What are the laws pertaining to overtime work in Lebanon?
Maximum work hours are set at eight hours per day. Overtime above the maximum working hours is permitted provided the overtime rates are paid.

Investment Development Law 360

What is Investment Development Law 360?
The Investment Development Law 360 was enacted to regulate investment promotion of domestic and foreign entities in Lebanon. The Law stipulates a system of incentives, tax and tariff concessions granted to investments in key economic sectors: industry, agriculture, agro-processing, tourism, information and communication technology (ICT) and media.

Click here to learn more about the Investment Development Law 360.

What are the Investment Zones?
Lebanon is divided into three investment zones. Investors wishing to set up an investment project in one of three zones are entitled to certain incentives and benefits.

Are the incentives and exemptions offered through the Investment Development Law 360 available to anyone?
Yes. The Investment Development Law 360 is completely transparent. The criteria for evaluating projects are the same for everyone.

Check the Package Deal Contract and Investment Projects  sections for more details on the selection criteria.

Is it difficult to obtain the permits and licenses required for investment projects?
No. This is where IDAL can help you. Through the One-Stop-Shop, IDAL can facilitate and streamline the permitting and licensing process for your investment project. IDAL acts as a single point of contact for all dealings with the Lebanese government, bypassing bureaucracy.

Does the Investment Development Law provide similar benefits and incentives to existing projects?
Yes.

Click here to learn more about the benefits provided to existing investment projects.

What will it cost to apply for a Package Deal Contract? Investment Project?
Absolutely nothing! The entire application process is free.

Once an application for an investment project or a package deal contract has been submitted to IDAL, how long does it take for a decision to be reached?
In general, a decision will be reached once all required documentations are submitted.

Click here to learn more about the required steps for approving a Package Deal Contract and an Investment Project .

IDAL

What services does IDAL provide to potential and existing investors?
IDAL offers to date a broad and comprehensive investment-services platform focusing on solution-oriented investment promotion, facilitation and aftercare services to ensure that investors have all the support required to establish or expand their operations in Lebanon.

Click here to learn more about IDAL's scope work and services.  

Does IDAL provide the same services for all investors alike regardless of their nationality?
Yes. Lebanese and foreign investors are treated equally by IDAL. Any investor requiring assistance or support from IDAL will receive fast and efficient help.

What guarantees and protection does IDAL provide for foreign investors?
Foreign investors can be covered against non-commercial risks through a number of organizations mainly: the National Investment Guarantee Corporation (NIGC) as well as other international organizations – Inter-Arab Investment Guarantee Corporation (IAIGC), COFACE (France), HERMES (Germany), ECGD (UK), OPIC, the Export Import Bank (US) and the Multilateral Investment Guarantee Agency (MIGA).

Who can benefit from the Export Plus Program?
The Export Plus program is intended for Lebanese farmers and exporters of fresh agriculture products.

Click here to learn more about the Export Plus program.  

How can I find out about Lebanese firms looking for foreign investors?
IDAL has recently launched the Investors Matching service, which connects the local business community with local and overseas investors.

Browse the Investors Matching Database  for a listing of available online information on potential partnership opportunities. 

I have a project and I am looking for a partner. Can IDAL help me?
Yes. You can register with IDAL's Investors Matching Database.  Registered members may conduct searches for business partners based on their specific partnership requirements.

Who should potential investors contact?
IDAL 's team stands ready to assist investors with any inquiry. IDAL's address, phone numbers and e-mail are available on the Contact us page.

How do I request a copy of a specific publication?
If you wish to download a publication in PDF format, please check our comprehensive Publications section. Physical copies of IDAL's publications may be requested through the form available on the Contact us  page.