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Libya Capital Gains Tax Guide 2026

Libya does not impose a specific capital gains tax. Gains from the sale of assets, shares, or property are not subject to a separate CGT regime. However, gains realized by businesses as part of their ordinary trading activities are taxed as business income at the standard corporate rate of 20% + 2% Jihad tax.

Overview — No CGT in Libya

Libya's tax system does not include a separate capital gains tax. Individuals selling assets privately, including shares, real estate, or personal property, are generally not subject to tax on any gain realized. There is no specific CGT legislation, no annual exemption, and no reporting requirements for capital gains by individuals. This makes Libya attractive for investors seeking to avoid capital gains taxation.

Business Gains

While there is no separate CGT, gains from the sale of assets by businesses as part of their ordinary trade or business are included in taxable income and subject to CIT at 20% + 2% Jihad tax. For example, a real estate developer selling properties would pay tax on the profits as business income. Similarly, a trading company selling shares would include any gains in its taxable profits. The distinction depends on whether the asset is held as a capital investment or as trading stock.

Property Gains

Gains from the sale of personal real estate by individuals are not subject to capital gains tax. However, property transfers are subject to stamp duty at rates typically ranging from 1-2.5% of the property value, payable by the buyer. If the seller is a business or property developer, the gain is included in business income and taxed at the standard 22% combined rate.

Share Disposals

Individuals selling shares in Libyan or foreign companies are not subject to capital gains tax. For corporate shareholders, gains on share disposals may be taxable as business income depending on the nature of the shareholding. There is no specific participation exemption regime.

FAQs

Do I pay tax when I sell my house in Libya?

No, there is no capital gains tax on the sale of personal property, including your primary residence or investment property. Only stamp duty applies to the transfer.

Are cryptocurrency gains taxable?

There is no specific CGT for crypto gains. If crypto trading is conducted as a business activity, profits are taxed as business income at 20% + 2% Jihad tax.

Do companies pay CGT on asset sales?

Companies include gains on asset sales in their ordinary taxable income, which is taxed at the standard CIT rate of 20% + 2%. There is no separate CGT calculation.

Disclaimer

This guide provides general information about Libyan capital gains tax for the 2026 tax year. Tax laws may change. Always consult with a qualified Libyan tax advisor or the Libyan Tax Authority for advice specific to your situation. InvestmentKit does not provide tax advice.

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