Investing in Lebanon’s real estate
This article discusses some, but not all, of the factors that must be carefully addressed before beginning any real estate transactions or due diligence. Property transactions, especially in foreign countries, can be complicated. Therefore, we strongly advise you to get independent expert assistance.
Foreigners are limited in the amount of property they can own in Lebanon.
Foreigners can possess just 3% of the country, whereas foreigners in Beirut can own up to 10% of the city’s entire area.
Who is eligible to own real estate in Lebanon?
Foreigners are allowed to purchase property in Lebanon, although they are limited to 3,000 square meters of land, including the structure, without prior permission or authorization. Larger plots for commercial development would require a decree from the Council of Ministers. Foreigners have one year to buy and register their property before their license expires, and any new development must be finished within five years.
Some banks offer loans to individuals who are salaried, self-employed, professionals, and traders residing and working in Lebanon.
Some banks provide loans to salaried, self-employed, professionals, and tradespeople who live and work in Lebanon.
A minimum age of 21 at the time of loan application and a maximum age of 65 at the time of loan maturity are required for salaried people with $1,500 in compensation, and no salary transfer is necessary. The minimum term of work is six months.
For entrepreneurs and self-employed professionals, however, you must be at least 21 years old at the time of the loan application. The borrower must be at least 65 years old when the loan matures. The basic minimum is $3,000, and one year of business experience is required.
Payments are made monthly for a minimum of 5 years and a maximum of 25 years during the repayment period.
Purchase Instructions
A notary public or a licensed facilitator drafts the sale agreement instead of a lawyer, as lawyers are only necessary in difficult transactions.
The seller obtains a real estate certificate from the Land Registry when the buyer and seller have reached an agreement.
The steps of the conveyancing procedure that are important to know about in the case
of an apartment are:
- Obtain a rental value from the Ministry of Finance.
- Obtain a sale contract from a Notary Public.
- Obtain a title deed.
- Pay the property registration fee.
When it comes to land,
- instead of getting a rental value, the municipality where the land is located must provide a declaration of contents.
- Obtain a sale contract from the notary public.
- Obtain a title deed.
- Obtain a map location of the property.
- Pay the property registration fee.
Other documents that may be supplied but are not required include the official cadastral (tax zone) map, the municipal and urban planning authority’s urban plan certificate, and the municipality’s tax clearance.
Fees: The buyer is responsible for all of these costs.
These fees are all paid by the buyer:
- Transfer fee 5%
- Stamp Duty 0.3%
- Bar Association Fee 0.1%
- Municipal Fee 0.25%
- Notary Tax 0.1%
- Registration Fee 0.15%
Total transaction costs: 5.9%
This article and the above linked artciles are not complete and are intended as preliminary guides only.
Source of the Article:
Where to buy and rent in Lebanon?
