North Africa
Libya tax rates 2026
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
Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.