Lebanon Cross-Border Tax Guide 2026
Lebanon's cross-border tax rules include 10% withholding tax on outbound dividends, interest, and royalties. Over 40 double tax treaties reduce these rates further.
Withholding Taxes (WHT)
- Dividends: 10% — 0% for resident individuals
- Interest: 10% — 0% for resident individuals on LBP deposits; 5% on USD deposits
- Royalties: 10%
All rates may be reduced under applicable double tax treaties.
Double Tax Treaties (DTTs)
Lebanon has over 40 DTTs in force. Key treaty partners include:
- France, UAE, Kuwait, Qatar, Egypt, Cyprus
- Italy, Romania, Greece, Armenia
- Algeria, Morocco, Tunisia, Sudan, Syria
- Iran, Iraq, Jordan, Bahrain, Yemen
- Senegal, Ivory Coast, Mali, Guinea
Transfer Pricing
Lebanon has introduced transfer pricing rules based on the OECD arm's length principle. Related-party transactions must be documented. The law applies to transactions exceeding certain thresholds, and documentation must be maintained for tax audit purposes.
Permanent Establishment (PE)
A foreign company creates a PE in Lebanon if it has a fixed place of business or a dependent agent concluding contracts. PE profits are taxed at 17% CIT. DTTs typically follow the OECD model with a 6-month threshold for construction sites.
Inbound Investment
Foreign investors can invest in most sectors without restrictions. IDAL (Investment Development Authority of Lebanon) offers incentives for qualifying projects. Dividends repatriated to foreign shareholders are subject to 10% WHT unless reduced under a DTT.