# Libya

 Country code: LY · Currency: LYD · Language: Arabic

**Pros**
- Minimal effective personal income tax rates and limited state capacity for fiscal surveillance
- Significant opportunities in decentralized energy production and reconstruction within an under-regulated market
- High degree of informal economic freedom due to the absence of centralized regulatory bureaucracy

**Cons**
- Chronic political instability and security threats from competing militias against physical assets and personnel
- Systemic corruption and absence of a reliable legal framework for the protection of property rights
- Dilapidated infrastructure and frequent power outages hindering the efficiency of modern business operations

Long story short: In Libya, the state basically evaporated after Gaddafi fell: nobody's auditing your books or chasing you for a permit.

The flip side: militias run the real government and collect their own brand of tax, corruption greases every gear you touch, and the frozen banking system means you'll be hauling stacks of cash everywhere.

Beyond that: in Tripoli's wealthy districts, daily life is calmer than you'd expect, the Mediterranean food is genuinely excellent, the Roman ruins along the coast are worth the trip, but roads and power supply are falling apart.

## Will your income be taxed?

Long story short: YES, BUT LIGHTLY.
Income tax in **Libya** is already light (**10%** at the top), and the *territorial* regime shrinks the net further: foreign-source income doesn't even enter it.

Friendly sticker, friendlier machinery.

**01.1 Income tax**

| Metric | Value | Detail |
| --- | --- | --- |
| Personal income tax | 5 → 10% | progressive · 2 brackets |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 1,885 | 5% |
| 1,885 + | 10% |

**01.2 Tax residence test**

| Metric | Value | Detail |
| --- | --- | --- |
| 183-day rule | does not exist here |  |
| Economic interest | does not exist here |  |
| Family centre | does not exist here |  |
| Habitual abode | does not exist here |  |
| Extended-stay test | does not exist here |  |

## Will your wealth be taxed?

Long story short: NO.
**Libya** keeps its hands off what you hold. *No capital gains tax*, no annual wealth grab, no inheritance regime.

Your portfolio compounds in peace and leaves the way it came in; nobody's standing at the door with their palm out.

**02.1 Investment income**

| Metric | Value | Detail |
| --- | --- | --- |
| Capital gains | NONE | progressive |
| Dividend tax | 10% | progressive |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 1,885 | 5% |
| 1,885 + | 10% |

| Metric | Value | Detail |
| --- | --- | --- |
| Interest income | NONE | progressive |

**02.2 Wealth & estate**

| Metric | Value | Detail |
| --- | --- | --- |
| Wealth tax | NONE | no annual wealth tax · no real-estate wealth tax · no net-worth assessment |
| Inheritance system | NONE | no estate tax · no heir-based duties · no succession tax framework. Wealth transfers across heir-classes are not taxed in this jurisdiction. Only standard probate / registration fees may apply. |

**02.3 Crypto**

| Metric | Value | Detail |
| --- | --- | --- |
| Crypto · tax regime | UNREGULATED | Fallback rate: 19% · Cryptocurrency is officially banned by the Central Bank of Libya (CBL) since 2018. While illegal, any income generated is theoretically subject to general income tax under Law No. 7 of 2010. Non-salary income for individuals (categorized as 'Other Income' or 'Professions') is taxed at a base rate of 15%, plus a 3% Jihad Tax and a 1% Solidarity Tax, totaling 19%. Enforcement currently prioritizes criminal prosecution and crackdowns on mining rather than tax collection. |
| Crypto-to-crypto | TAXABLE | each swap counts as a disposal — gains realised at every trade |
| FATF travel rule | NOT SIGNED | no information-sharing obligation on VASP transfers |

## Easy to run a company there?

Long story short: YES, BUT TAXED.
Corporate tax in **Libya** lands at a *moderate* **20%**, no IP-box to soften it. Standard accounting, VAT at **n/a**, the usual dose of paperwork. Nothing to celebrate, nothing to flee.

**03.1 Rates**

| Metric | Value | Detail |
| --- | --- | --- |
| Corporate tax | 20% | flat |
| VAT standard rate | NONE | no general VAT · no consumption tax framework |

**03.2 Regime & registry**

| Metric | Value | Detail |
| --- | --- | --- |
| IP Box · Patent Box | NONE | no IP regime · IP income taxed under standard corporate rules |
| Misuse of corporate assets | CRIMINAL | criminal liability · Article 588(3) of Law No. 23 of 2010 on Commercial Activity · Libyan law adheres to the principle of the autonomy of the legal entity, meaning a company's assets are legally distinct from those of its shareholders. Under Article 588(3) of the Commercial Code (Law No. 23 of 2010), any manager who uses company funds or credit for personal purposes, knowing such use is contrary to the company's interests, commits a criminal offense. This is punishable by imprisonment for up to one year and a fine. The law does not exempt sole shareholders from this provision, as the 'social interest' of the company is protected independently of the owner's consent, and the crime is established regardless of whether the company remains solvent. |
| Shareholders privacy | PRIVATE | Commercial Register (Sijil al-Tijari) |
| Directors privacy | PRIVATE | Commercial Register (Sijil al-Tijari) |

**03.3 Incorporation cost**

_In this country, the most standard company form is called Sharikat That Mas'ouliyah Mahdoodah (شركة ذات مسؤولية محدودة) (Limited Liability Company (LLC)). The costs below are for incorporating a company in its simplest form, for reference only._

| Metric | Value | Detail |
| --- | --- | --- |
| Government Registration Fees (Registry, Notary, and Publication) | USD 330 |  |
| Professional Legal & Incorporation Services (Market Average) | USD 3,926 |  |
| Total | USD 4,256 |  |

## A good fit for a holding?

Long story short: NO.
**Libya** has no treaty network at all, which buries the holding question, full stop.

Every dividend in or out eats the statutory withholding at full rate, and no domestic regime can patch a hole that sits on the source side. Don't park a holding here.

**04.1 Substance & exemptions**

| Metric | Value | Detail |
| --- | --- | --- |
| Territorial · individuals | TERRITORIAL | territorial — foreign-source income generally untaxed |
| Territorial · corporates | WORLDWIDE | worldwide corporate taxation |
| Participation exemption | NONE | no dividend participation exemption regime |
| CFC rules | NONE | no controlled foreign corporation regime · foreign-source corporate income out of scope |

**04.2 Withholding tax · non-resident**

| Metric | Value | Detail |
| --- | --- | --- |
| WHT · dividends | 0% | non-resident outbound |
| WHT · interest | 0% | non-resident outbound |
| WHT · royalties | 0% | non-resident outbound |
| Tax-haven WHT | NONE | no punitive rate on record |

**04.3 Treaty network**

| Metric | Value | Detail |
| --- | --- | --- |
| Treaties signed | 0 | active |
| Treaties pending | — | in negotiation |

## Easy to come and go?

Long story short: LITTLE.
Coming and going from **Libya** costs you nothing worth mentioning. *Territorial* regime (foreign income stays foreign), *no exit tax* at the door.

You show up with your stuff, you leave with your stuff, plus whatever you earned abroad in between. Borders the way they should all work.

**05.1 Exit & dual nationality**

| Metric | Value | Detail |
| --- | --- | --- |
| Exit tax | NONE | no triggers active · residence change tax-free · no deemed-disposal mechanism |
| Dual citizenship | FORBIDDEN | naturalisation requires renouncing existing citizenship |

**05.2 Citizenship paths**

| Metric | Value | Detail |
| --- | --- | --- |
| Residence | 10 years | available path to naturalisation |
| Marriage | — | not available |
| Birth | — | not available |
| Descent | — | not available |
| Investment | — | not available |

## Is your money watched?

Long story short: NO.
Nobody's reading over your shoulder in **Libya**. It has joined *almost none* of the big automatic-exchange machines (CRS, FATCA, CARF, MLI, MAAC), and its corporate registries are *non-public*.

Your account movements stay out of foreign tax offices; your name stays out of search boxes. Here, discretion isn't a perk; it's the factory setting.

**Multilateral reporting frameworks — 0/9 active**

| Item | Status | Detail |
| --- | --- | --- |
| CRS | None | — |
| CARF | None | — |
| FATCA | None | — |
| MLI | None | — |
| BEPS | None | — |
| MAAC | None | — |
| GLOBAL FORUM | None | — |
| EOIR | None | — |
| CRYPTO TRAVEL RULE | None | — |

## Is it blacklisted?

Long story short: YES.
**Libya** sits on an **international embargo list** (UN, US or EU sanctions). This is not blacklist friction, it's the financial death penalty: correspondent banking is gone, payment rails refuse the corridor, and simply transacting with the country can put *you* on a sanctions desk's radar.

Whatever the tax math says, the jurisdiction is radioactive. Walk away.

**Blacklist exposure — Listed by 1 authority**

| Item | Status | Detail |
| --- | --- | --- |
| EMBARGO | Listed | un / us / eu sanctions |
| FATF | Clear | grey / black list |
| EU | Clear | non-cooperative list |
| FRANCE | Clear | ETNC list |
| SPAIN | Clear | tax-haven list |
| PORTUGAL | Clear | favourable regimes |
| BRAZIL | Clear | low-tax list |

## Do you feel free there?

Long story short: NO.
Press freedom in **Libya** is *locked down* (RSF rank **\#137**). Independent media and civic space operate under pressure (when they operate at all), and that kind of grip usually spills over into economic life too.

Small mercy: crypto isn't formally banned.

**08.1 Press freedom**

| Metric | Value | Detail |
| --- | --- | --- |
| Press freedom · RSF index | 137/180 | score 40 · ↑ 6 ranks year-on-year |

Central bank digital currency

NONE

no announced CBDC program · no pilot · no retail or wholesale prototype on record

## Connected to the world?

Long story short: COMPLETELY CUT OFF.
**Libya** is unplugged from the global money grid: **1/11** of the services we track work here. No *Stripe*, no *Amazon*, and almost nothing around them either.

Whatever your plan is, the payment layer gets built from scratch, with local banks and local rules. Come for other reasons; connectivity isn't one of them.

**Accept payments — 0/6 available**

| Item | Status | Detail |
| --- | --- | --- |
| Stripe | Not available | card payments |
| PayPal | Not available | wallet payments |
| Adyen | Not available | enterprise psp |
| Mollie | Not available | eu payments |
| GoCardless | Not available | direct debit |
| Paddle | Not available | merchant of record |

**Bank and move money — 0/3 available**

| Item | Status | Detail |
| --- | --- | --- |
| Wise | Not available | multi-currency |
| Revolut | Not available | personal banking |
| Revolut Business | Not available | business banking |

**Buy and sell on Amazon — 1/2 available**

| Item | Status | Detail |
| --- | --- | --- |
| Amazon | Not available | consumer delivery |
| Amazon Seller | Available | marketplace selling |

  SEE ALSO## Other jurisdictions worth comparing

Picked by similarity of strategic profile to Libya. No editorial ranking — neighbours in the same scoring space.

  PROFILE-ADJACENT Same shape, comparable overall friction.

 [   Honduras HN  → ](https://stateless.sx/en/country/hn) [   Panama PA  → ](https://stateless.sx/en/country/pa) [   St. Helena SH  → ](https://stateless.sx/en/country/sh)

  NOTABLY MORE FAVORABLE Same family of strategies, higher total score.

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  NOTABLY LESS FAVORABLE Same family of strategies, lower total score.

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