Lebanon is considering a new residency-by-investment framework aimed at attracting foreign capital and high-net-worth individuals. On June 22, the Parliamentary Finance and Budget Committee approved a draft bill that would grant residency to non-residents who invest at least US$500,000 in the country. However, the proposal still requires approval from the full Parliament and the issuance of implementing regulations before it can come into force.
Overview of the Proposed Program
Committee chair Ibrahim Kanaan described the initiative as a tax-residency instrument rather than a traditional golden visa. The proposed law would grant “golden residency” to non-residents, including foreigners and Lebanese expatriates, provided they invest no less than US$500,000 across three approved sectors. He compared the concept to Dubai’s golden residency model.
Investment Conditions and Compliance Measures
The investment must be transferred from abroad and will be subject to strict scrutiny to prevent money laundering. The funds are expected to flow through Lebanon’s “fresh dollar” system, referring to post-2019 capital that remains liquid, unlike older deposits frozen in the banking system. While real estate may qualify, it will remain subject to Lebanon’s foreign ownership laws.
Fees and Economic Objectives
In addition to the investment requirement, each family member applying for the same tax-residency status would need to pay an annual fee of no less than US$50,000. Kanaan positioned the program as a tool to create jobs, boost state revenues, and stimulate investment inflows, provided that all conditions are properly met.
Existing Residency Options and Tax Implications
Lebanon already offers residency permits to foreigners through an independent-means route, which requires proof of financial self-sufficiency. However, the new proposal introduces a higher financial threshold while granting tax residency. This is significant because Lebanon applies a territorial tax system, meaning only income generated within the country is taxed.
Challenges and Criticism
The proposal faces skepticism due to Lebanon’s current economic and financial situation. Since October 2024, the country has remained on the FATF gray list, and billions of dollars in deposits have been frozen since the 2019 financial collapse. Maria Wehbe, an advisor at Arton Capital, described the proposal as “somewhat ambitious,” questioning its timing and competitiveness compared to more stable jurisdictions.
Practical and Operational Concerns
Wehbe also raised concerns about implementation, including how authorities would verify the legitimacy and full transfer of investment funds in a largely cash-based economy. She further questioned whether General Security has the capacity to efficiently process a potentially high volume of applications. Many operational aspects, including eligible sectors and compliance mechanisms, remain undefined.
Broader Industry Perspective
Despite the challenges, some industry experts view the proposal as part of a global trend. Tony Ebraheem, founder of Triple One Immigration Services, noted a growing awareness among governments of the importance of golden visa and investment migration programs as tools to attract wealthy investors.
Next Steps
The bill now awaits a vote in the full Parliament, followed by the development of detailed regulations. These will need to clarify eligible investment sectors, compliance procedures, and administrative responsibilities before the program can be implemented.
Summary
Lebanon’s proposed residency-by-investment program aims to attract foreign capital through a US$500,000 investment threshold and additional annual fees. While positioned as a tax-residency solution, the initiative faces significant challenges, including economic instability, regulatory uncertainty, and operational concerns. Although some see it as part of a broader global trend, its success will depend on timing, execution, and investor confidence.
