- How would repatriation of capital work for a foreign investor?
Lebanon’s liberal investment policies are designed to attract foreign direct investment to foster economic recovery and rebuild its civil war-damaged infrastructure. In addition to limiting the maximum income tax rate to 10% for foreign investors, the movement of funds in and out of Lebanon is free from taxes, fees, or restrictions. Lebanon also has bilateral trade investment agreements with China and a number of European, East European, and Arab countries.
To conserve cash, the government uses “build, operate, and transfer” (BOT) agreements to finance major projects. In 1997 total foreign direct investment (FDI) totaled USD 150 million. By 2000 this had nearly doubled to USD 297.8 million. Lebanon allows full repatriation of capital, profits, and dividends. There are no restrictions on the inflow and outflow of funds as long as they are justified.
- What specific liabilities can impact a property owner?
Ownership of a property comes with certain liabilities obliging the landlord to comply with it. Therefore the landlord must pay the due fees whether to the ministry of finance or to the municipality where the land is located.
- Is there any specific environmental or health and safety legislation a property owner needs to be aware of?
The property owner is entitled to full discretion regarding his property, however, this should be according to the laws and regulations, where regarding certain actions it is mandatory for an owner to obtain a license or a permit and especially if it is related to environmental or health and safety, for example demolition of buildings, cutting down trees, construction …etc.
8. Do covenants get put on properties – what are the typical types and why?
Restrictive covenants are imposed by a real estate property seller to prevent the buyer from using or developing the land in such a way that could be damaging the surrounding lands.
In Lebanon, such covenants are not required or stated under the real estate laws however there are no legal provisions prohibiting such restrictions. Therefore, the covenants can be subject to the mutual consent of the buyer and the seller (contractual freedom) and shall be regulated by the Lebanese Code of Obligations and Contracts.
- What liabilities can be passed on from one owner to a subsequent owner?
The purchase of a property not only provides the transaction of the land to the subsequent owner but also the covenants and liabilities get passed on as well, for example, all references on the property’s record shall be passed on with no exclusions.
- How does the law over boundary disputes work?
If there are any boundary disputes between two neighboring property owners, the claiming owner can file a lawsuit at the real estate court where the properties are located requesting the appointment of a surveyor expert. After the surveyor expert prepares the report containing a details survey of the properties and its boundaries, it is presented to the judge. However the surveyor expert’s report is not binding to the judge where he has the discretionary authority in such cases, but most of the time the judge sentences according to the report.
11. How does the law governing title disputes work?
The law governing title dispute is the real estate property law, the claiming owner can file a lawsuit at the real estate civil court where the property is located and go through the court procedures and present the supporting documents in order to reach a verdict.
