North Africa
Libya: tax at a glance
A low-rate system. Individual tax tops out at 10%, the corporate rate is a flat 20%, there is no VAT, and the jehad surtax was abolished in July 2025.
Worldwide (residence-based)
Last verified
The taxes
- Personal income (top)
- 10%Progressive, at 5% up to LYD 12,000 and 10% above that. The 1–3% jehad surtax was cancelled effective 14 July 2025.
- Corporate income
- 20%
- Capital gains
- There is no separate capital gains tax regime. Gains are taxed as ordinary business income.
- VAT / None. There is no VAT.
- None
- Dividends (WHT)
- None. Dividends are not taxed.
- Interest (WHT)
- None. There is no general withholding tax regime.
- Royalties (WHT)
- None. Foreign providers are instead taxed through a permanent establishment.
- Social security (employee)
- 5.125%
- Social security (employer)
- 14.35%–15.375%
- Wealth tax
- None
- Inheritance / estate
- None. Sharia inheritance rules apply instead.
- Property tax
- Nothing significant.
- Other
- A stamp duty of 0.5% on net salaries and 1–3% on contracts. The jehad tax was abolished in July 2025.
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- No
- CRS
- Not participating
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.