How dividend tax works in Lebanon
Lebanon generally withholds tax from dividends paid to resident and non-resident shareholders at 10%. That is the headline domestic dividend tax rate, and it applies whether the distributing company is taxed on profits or exempt in some other way.
Some treaties reduce the dividend rate for qualifying corporate shareholders, often to 5%, so cross-border holdings still need treaty paperwork and beneficial-owner checks.
Foreign dividends can still be taxable for Lebanese residents under the moveable-capital rules, so it is not enough to look only at the domestic withholding tax on a Lebanese company’s distribution.
Tax rates at a glance
- Dividend withholding tax
- 10%Standard
- Domestic dividends
- 10%
- Treaty reduced rate
- 5% possible
- Foreign dividends
- Taxable for residents
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
InvestorsHolding companiesFoundersFamily businessesExpats
Watch out for
- Revaluation gains can be treated as distributed dividends in some cases, which can bring the 10% distribution tax into play.
- Treaty relief is not automatic. You usually need ownership, residency and beneficial-owner documentation before the lower rate is applied.
- If you are tax resident outside Lebanon, your home country may still tax the dividend even when Lebanese withholding has already been applied.
Frequently asked questions
Does Lebanon tax dividends?
Yes. Lebanon generally withholds 10% tax on dividends paid to resident and non-resident shareholders.
Can the dividend tax rate be lower?
Yes. Some treaties reduce the rate, often to 5% for qualifying corporate shareholders.
Are foreign dividends taxed in Lebanon?
For Lebanese residents, foreign dividends can still fall under the moveable-capital rules and should be checked separately from domestic withholding tax.