A Lebanese national may have lived abroad for twenty years, working and paying taxes in another country, while still owning an apartment in Beirut, a plot of land in their hometown, a bank account, or a stake in a company. They may receive rental income, inherit property, sell an asset, or decide to invest part of their money in Lebanon.

This raises a question that many people do not consider until they are about to complete a transaction: Can Lebanese expatriates still have tax obligations in Lebanon even if they live abroad?

In an exclusive interview with DiasporaEcho, licensed accountant Rabih Dagher breaks down the issue from a practical perspective, explaining that the first mistake is to assume that being an “expat” automatically determines a person’s tax status.

Tax residency, the source of income, the location of assets or property, the nature of the activity, and the country of residence can all affect the answer.

Living abroad: Does that mean your tax relationship with Lebanon is over?

Dagher begins by distinguishing between a Lebanese national who lives and works abroad and earns no income in Lebanon, and an expatriate who continues to have financial or economic interests in the country.

Nationality alone is not the determining factor. According to Dagher, the more important questions are: What does the person own in Lebanon, and what type of income is generated by that ownership or activity?

This is where confusion often arises. Simply owning an asset in Lebanon does not necessarily carry the same tax implications as when that asset begins generating income, or when it is sold, transferred, or used as part of an investment.

For Dagher, therefore, asking “Where do I live?” is not enough. The source of the money and the nature of the transaction carried out in Lebanon must also be considered.

Buying an apartment in Lebanon? Do not calculate the purchase price alone

Dagher places real estate among the key issues expatriates should pay attention to, particularly given how many Lebanese abroad continue to own homes or land in Lebanon.

The cost of purchasing a property does not end with the amount paid to the seller. There are fees and procedures associated with transferring and registering ownership, while additional obligations may arise depending on how the property is used, whether it generates income, and eventually how it is treated for tax purposes when sold.

Dagher advises expatriates to calculate the full cost of the transaction before making a decision rather than basing an investment calculation solely on the purchase and eventual sale prices.

“This becomes even more important when the property is being purchased as an investment rather than as a family home, because the real return cannot be determined before all related costs are taken into account,” he notes.

Renting out your home and getting paid in dollars? The currency does not eliminate the tax obligation

What happens if a Lebanese national lives in Paris, Montreal, or Dubai but rents out an apartment in Lebanon and receives the rent in US dollars?

Dagher stresses a key point: The fact that the owner lives outside Lebanon, or that the rent is paid in a foreign currency, does not change the fact that the income is generated by a property located in Lebanon.

This distinction matters because some expatriates may view money they receive from Lebanon solely through the lens of where they currently reside, while the source of that income is itself relevant in determining its tax treatment.

Owning an apartment for personal use is therefore not the same as owning one that generates regular rental income.

An inheritance can also leave expatriates with a tax file in Lebanon

The situation becomes more complex when an expatriate did not purchase the asset but inherited it.

A Lebanese national living abroad may suddenly become the owner of a house, land, funds, or shares in Lebanon following the death of a family member. Living abroad does not mean that the transfer of those assets takes place without procedures or obligations in Lebanon.

Dagher therefore stresses that expatriates should not treat inheritance solely as a family legal matter. They should also examine the financial and tax implications of transferring ownership before completing the necessary procedures.

“This is particularly important in light of amendments to certain tax provisions, which means that relying on outdated information or on someone else’s experience may not be a safe option,” he says.

A gift now or an inheritance later?

The question becomes even more sensitive when parents consider transferring property or money to their children during their lifetime.

Is a gift less expensive, or is it better for the assets to pass to the children later through inheritance?

According to Dagher, there is no single answer that applies to every case. The value and type of the asset, the degree of kinship, the method of transferring ownership, and the applicable fees and taxes all have to be taken into account.

A decision that may appear to be purely a family matter can therefore have different financial consequences. Calculating those consequences before transferring ownership is more important than trying to address the costs after the transaction has been completed.

Want to invest money in Lebanon? Do not start with the transfer

Dagher then turns to one of his most important recommendations for expatriates considering investing in Lebanon.

The first question, he argues, should not simply be “Where should I invest?” but also “How should I invest?”

Should the expatriate establish a company? Become a partner in an existing business? How will the funds enter Lebanon? What will the legal structure of the business be? And what accounting and tax obligations will arise as a result?

Depending on the nature of the project, different taxes and obligations may come into play, including income tax and VAT when applicable.

Dagher cautions against reversing the proper order of events: transferring the money or signing the contract first, and only then asking an accountant about the consequences.

“Accounting and tax planning should be part of the investment assessment from the outset, rather than an attempt to correct the situation after the fact,” he says.

You paid tax in Lebanon. Is that the end of it?

Not necessarily. And this may be the issue most directly relevant to expatriates.

Someone living outside Lebanon is not necessarily dealing with only one tax system. Depending on the laws of their country of residence, they may also be required to disclose income, assets, or investments held abroad.

This is where, Dagher explains, the issue of double taxation must be examined: Is there a tax treaty between Lebanon and the country of residence? What does it cover? And how is tax already paid in Lebanon treated?

Paying tax in Lebanon, therefore, does not automatically mean that an expatriate can disregard the matter in their country of residence.

This is precisely the type of situation in which a lack of information can translate into a real financial cost.

The United States is not France, and France is not the Gulf

Dagher rejects the idea of placing all Lebanese expatriates into a single tax category.

A Lebanese resident of the United States or Canada may face obligations in their country of residence that differ from those of someone living in France. The situation may be different again for Lebanese residents of Gulf countries.

Lebanon itself is not the only factor. Tax systems differ from one country to another, as do the tax agreements applicable between those countries and Lebanon.

The right question, therefore, is not simply: “What tax do I have to pay in Lebanon?” It is also: “What does this Lebanese-source income mean for my overall tax position in the country where I live?”

This is where specialized advice in both jurisdictions becomes particularly important when significant sums or investments are involved.

Before your money moves, ask questions

From his discussion with DiasporaEcho, Dagher offers expatriates a straightforward principle: Seek advice before the transaction, not after it.

Before buying or selling property, renting it out, receiving an inheritance, transferring ownership through a gift, establishing a company, or transferring funds for investment, expatriates should understand their tax status, the obligations that may arise in Lebanon, and any additional implications in their country of residence.

This can be reduced to five essential questions: Where am I a tax resident? What money or assets do I own in Lebanon? Do they generate income? What tax or fee could arise from the transaction I am considering? And will my country of residence require me to report it as well?

For Dagher, knowing the answers before making a decision can mean the difference between financial planning and discovering a problem after it has already occurred.

Living thousands of kilometers away from Lebanon may create physical distance, but it does not automatically eliminate the financial and tax implications of the assets and interests an expatriate still maintains in the country.

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