Lebanon presents a complex environment for investors vivir en el extranjero. The country has faced a prolonged financial crisis since 2019, marked by sovereign default, strict capital controls, and multiple exchange rates.
While reforms are underway, foreign investors continue to face significant risks related to banking access, taxation, and compliance.
This article provides a structured guide for expats considering investments in Lebanon. It covers how to open and operate bank accounts under current capital controls, options for moving money in and out of the country, as well as Lebanon’s tax framework for expats.
The guide also touches on property ownership limits and residency options with the lack of a golden visa program.
My contact details are hello@adamfayed.com and WhatsApp +44-7393-450-837 if you have any questions.
La información contenida en este artículo es meramente orientativa. No constituye asesoramiento financiero, jurídico o fiscal, ni una recomendación o solicitud de inversión. Algunos hechos pueden haber cambiado desde el momento de su redacción.
How to Open a Dollar Account in Lebanon as an Expat
To open a dollar account in Lebanon as an expat, you must visit a local bank in person, submit identification and proof of income, and fund it with fresh USD from abroad. Below are the steps and documents you’ll need to complete the process.
Step 1: Choose a Bank
Opening a bank account in Lebanon is possible for foreigners, but the requirements are stricter than in the past due to capital controls, anti–money laundering rules, and the FATF grey-listing.
The process depends on whether you want a resident account (with local ID and residency) or a non-resident account (as a foreigner with no local ID).
Not all Lebanese banks handle expat clients equally. Larger banks with international correspondent relationships (e.g., Bank Audi, BLOM Bank, Byblos Bank, Fransabank) are more experienced with non-resident clients, but even they apply heightened due diligence.
Always confirm that the branch can open fresh USD accounts (funded only by new inflows, not legacy deposits).
Step 2: Prepare Documentation
Expect to provide:
- Valid passport (and residence permit if available).
- Proof of address abroad or in Lebanon (utility bill, lease, or deed).
- Proof of income or source of funds (employment contract, business documents, payslips, tax returns, or investment portfolio statements).
- Bank reference letter from your home country bank is often requested.
- Tax identification number (TIN) from your country of residence, to meet FATCA/CRS reporting.
Some banks may ask for notarized translations if documents are not in Arabic, English, or French.
Step 3: Submit Application in Person
Most banks require physical presence at a Lebanese branch to open the account. Remote openings are generally not possible after 2019.
You will complete KYC/AML forms and declare whether you are a US person (FATCA) or tax resident elsewhere (CRS).
Step 4: Fund With Fresh USD
The account must be funded with fresh dollars (wire transfer from abroad or cash deposit). Money coming from pre-2019 accounts in Lebanon cannot be classified as fresh. Fresh USD accounts can normally:
- Receive international wire transfers.
- Allow international transfers out.
- Issue international debit/credit cards linked to fresh funds.
Step 5: Confirm Restrictions and Fees
Even with fresh USD, banks may impose:
- Minimum balances (commonly USD 1,000–5,000).
- Monthly account fees or transaction fees in hard currency.
- Transaction reporting delays, especially for larger wires flagged for AML revise.
What is a lollar account?
Lebanese banks now operate under a dual system: legacy dollar accounts, commonly referred to as “lollars”, and fresh USD accounts. Understanding the distinction is critical for expats.
- Legacy Dollar Accounts: Balances deposited before October 2019 are subject to withdrawal restrictions, quotas, and forced conversions into Lebanese pounds at unfavorable rates. These funds are effectively illiquid for international investors and should not be relied upon.
- Fresh USD Accounts: These are funded by new transfers from abroad or fresh cash deposits. Funds in these accounts can be freely withdrawn in cash or transferred internationally, making them the only reliable option for expat investors. Documentation requirements typically include a valid passport, proof of residency or work status, and disclosure of source of funds under strict anti–money laundering rules.
- Capital Controls: Although not formalized into law, Lebanese banks continue to enforce central bank circulars that restrict withdrawals and transfers. Circular 158 and 166 allow limited monthly withdrawals in dollars, but these apply only to legacy accounts and do not offer meaningful liquidity for new investors.
For expats entering Lebanon, the practical step is to open a fresh USD account with a reputable bank that maintains active correspondent relationships abroad.
It is recommended to maintain a secondary offshore account to secure investment capital outside the country in case new restrictions are imposed.
Sending Money from Lebanon Abroad
Moving money out of Lebanon remains one of the most difficult challenges for expats. Since 2019, banks have enforced informal capital controls that restrict transfers from legacy dollar accounts. The rules are not uniform, but several principles apply.
Only money classified as “fresh” (wired from abroad or deposited in cash after 2019) can be moved outside Lebanon. Transfers are allowed in full, but banks scrutinize transactions heavily, especially larger wires.
Delays are common due to anti–money laundering (AML) reviews.
Funds held in legacy (lollar) accounts, however, cannot be transferred abroad except under Central Bank Circulars 158 and 166, which permit minimal monthly withdrawals in dollars or partial conversions to Lebanese pounds.
Workarounds for expats:
- Dual banking setup: Maintain one Lebanese fresh USD account for local expenses and a foreign account for savings and investments.
- Remittance companies: Services like Western Union or MoneyGram operate, but fees and exchange spreads are high.
- Employer payroll arrangements: Some expats negotiate salaries to be paid directly abroad, bypassing Lebanese banks.
- Informal “hawala” networks: These still exist but carry regulatory and legal risks.
Always test the system with a small transfer before wiring significant sums. Keep funds in fresh USD accounts only, and never assume that transfer rules will remain stable for long periods.
Expat Tax Rules in Lebanon: What You Need to Know
Lebanon operates a territorial tax system, meaning residents and non-residents are taxed only on income sourced from within Lebanon.
Foreign-sourced income is generally not taxable. For expats, this simplifies some aspects but creates specific obligations for local business and investment.
- Personal Income Tax: Expats earning income from Lebanese employment or services are taxed at progressive rates on Lebanon-sourced income. Foreign salaries remitted to Lebanon but earned abroad are not taxed locally.
- Withholding Tax for Non-Residents:
- 7.5% on payments for services performed in Lebanon.
- 2.25% on sales of equipment and materials.
- 10% on dividends paid to non-residents.
- Capital Gains Tax: Real estate gains are taxed at 15%. Corporate capital gains are taxed at the standard corporate rate. Some exemptions exist for long-term ownership or primary residences.
- Value-Added Tax (VAT): The standard VAT rate is 11%. Expat-owned businesses providing goods or services in Lebanon are required to register if annual turnover exceeds the statutory threshold.
- Inheritance and Estate Tax: Estate transfers are governed by both civil law and religious court rules. Tax rates vary depending on degree of kinship, with closer relatives paying less. Expats with assets in Lebanon should plan succession carefully.
- Compliance Considerations:
- Lebanon has adopted FATCA and the OECD Common Reporting Standard (CRS), so foreign investors should assume their financial accounts will be reported to their home tax authorities.
- Employers and investors must also contribute to the National Social Security Fund (NSSF), though rules and contribution ceilings have shifted due to the crisis.
Expats benefit from Lebanon’s territorial tax system, but must budget for withholding taxes, VAT, and property taxes on local investments. International tax reporting obligations still apply through FATCA and CRS.
Can Foreigners Buy Property in Lebanon?
Yes, Lebanon allows foreign ownership of real estate but under strict limits.
- Ownership Caps:
- Up to 3,000 m² without government approval.
- Larger purchases require approval from the Council of Ministers.
- Aggregate foreign ownership cannot exceed 3% of total land nationwide, or 10% in Beirut.
- Registration Rules: Property must be registered within one year of purchase, or the license lapses.
- Taxes:
- Real estate capital gains taxed at 15%.
- Annual property tax levied on rental income or deemed rental value.
- Transfer fees at registration add ~5–6% of property value.
- Residency: Buying property does not grant automatic residency or a golden visa. Residency must be obtained separately.
Focus on properties with strong USD rental yields in prime areas. Always verify title deeds, zoning, and compliance with the foreign ownership cap before purchase.
Does Lebanon Have a Golden Visa or Residency by Investment?
No. Lebanon does not offer a formal golden visa or residency-by-investment program. Property ownership, even above the 3,000 m² threshold, does not grant automatic residency rights.
- Ordinary Residency Routes:
- Work permits issued through a sponsoring employer.
- Student visas for those enrolled in Lebanese universities.
- Family reunification if married to or directly related to a Lebanese citizen.
- Special permits may be available for religious, humanitarian, or diplomatic purposes.
Residency permits must be renewed periodically and often require proof of income, accommodation, and valid insurance. Expats investing in Lebanon must therefore separate their investment strategy from their residency planning.
Unlike regional neighbors, Lebanon does not link investment to immigration status. Residency must be secured through standard legal channels.
Expat Investment Options in Lebanon
Given the banking crisis and currency instability, only certain sectors remain viable expat investment options.
- Real Estate: Properties in Beirut and prime coastal areas can still generate USD-denominated rental yields, particularly if targeting the expatriate or diaspora market. Liquidity is limited, so real estate should be viewed as a long-term hold.
- Diaspora and Export-Linked Businesses: Sectors that earn fresh USD from abroad—such as IT services, creative industries, and export-oriented agriculture—are better insulated from local currency volatility.
- Tourism and Hospitality: Despite political instability, Lebanon’s cultural and natural attractions maintain demand, particularly among returning diaspora. Opportunities exist in boutique hotels, restaurants, and niche tourism services priced in USD.
- Trade and Services: Import-export businesses can be profitable if structured with offshore banking support. Strong contracts and arbitration clauses are essential to protect against payment and transfer risks.
- Less Viable Sectors: Local banking products, Lebanese bonds, and the thin Beirut Stock Exchange carry high risk and poor liquidity. These should be approached cautiously, if at all.
Focus only on ventures that earn or are priced in USD. Avoid reliance on local pound revenues, as currency depreciation and capital controls will erode profitability.
Expat investors may face significant risks related to banking access, taxation, and compliance until significant reforms in Lebanon have taken place.
It is highly recommended to seek the services of a trusted expat financial advisor for those interested in investing in Lebanon.
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Adam es un autor reconocido internacionalmente en temas financieros, con más de 830 millones de respuestas en Quora, un libro muy vendido en Amazon y colaborador de Forbes.
