Starting a Business Abroad as an Expat: A Practical Guide to Entrepreneurship in Lebanon

Published on April 24, 2026 and written by Cyril Jarnias

Setting up a business in Lebanon means entering a permanent paradox. On one hand, an economic crisis of rare severity, a battered currency, a weakened state. On the other, a surprisingly dynamic startup ecosystem, a highly educated population, young and connected engineers, and regional-level tech hubs. For an expatriate, the question is not just “is it possible?”, but rather “how to structure a viable project in this very particular environment?”

A Resilient Entrepreneurial Ecosystem in a Country in Crisis

Let’s start by facing reality. Since 2019, the Lebanese economy has suffered one of the sharpest contractions in the world: GDP has nearly halved, from about $52 billion in 2019 to $21.8 billion in 2021, a cumulative drop of nearly 40%. In 2024, GDP contraction is still estimated at 7.5%, with the economy expected to remain under pressure at least until 2026.

Yet, despite this context, the country’s startup ecosystem shows surprising resilience. It ranks 77th globally and 7th regionally in the Middle East. The tech sector currently represents only about 3% of GDP, but projections point to over a billion dollars in contribution by 2025, if reforms continue and the regional environment does not deteriorate further.

A Pool of Young, Highly Tech-Savvy Talent

One of the main assets for a foreign entrepreneur is the quality of human capital. The Lebanese education system, particularly in engineering schools and French- and English-language universities, produces highly competitive recent graduates.

For a startup founded by an expatriate, this means something very concrete: it is possible to build a young, multilingual (Arabic, French, English) team comfortable with cutting-edge technologies, at salary costs significantly lower than in Northern Europe, France, or the Gulf.

A Struggling Domestic Market but a Strong Export Focus

Private consumption, historically around 100% of GDP, remains severely weakened by the loss of purchasing power and inflation that approached 220% in 2023, after even higher peaks for certain items (over 400% for food, transportation, and healthcare at the end of 2021). For an entrepreneur, this means the pure domestic B2C market is risky if it relies solely on the local middle class.

However, several factors favor international-oriented models:

– the de facto dollarization of the economy: most major transactions, especially in real estate and high-end services, are conducted in USD cash;

– the very high importance of services (nearly 70% of GDP and over 75% of employment);

– a massive diaspora rate, with remittances representing about 38% of GDP, and strong demand for services linked to the home country (fintech, content, exported products).

In this context, many new projects position themselves as “export services“: software outsourcing, digital marketing, design, content, customer support, or remote teams for clients in Europe, the Gulf, or North America.

The table below summarizes the main project categories currently dominant in this export or international services logic.

For the expatriate looking to set up a structure in Lebanon but targeting revenue in strong currencies internationally, this breakdown is a good indicator of the most promising playing fields.

Where Are the Real Opportunities for an Expatriate in Lebanon?

The country does not lack “classic” business ideas – cafés, services, real estate, healthcare, education, crafts, agriculture, environmental solutions – but they do not all present the same risk/reward ratio in the current climate. Lebanon’s advantage is that it combines immense local needs, driven by the crisis, with a strong capacity to export digitized services.

Tech, Fintech, “Crisis Tech”: Niches Where the Crisis Creates the Market

The sectors identified as the most dynamic for startups are:

– fintech and crypto: alternative payment solutions, trading platforms, applications for accessing dollars, money transfer solutions, merchant services;

– blockchain and digital assets, with a digital assets market expected to reach nearly 250,000 users by 2025;

– artificial intelligence, already adopted by a majority of engineers and applied to healthcare, logistics, media, or finance;

– “agri-food tech” and cleantech, encouraged notably by programs like IdeaLab.

Local startups like FoodPal (delivery based on a hybrid model between “cloud kitchens” and an AI-optimized fleet, with 40% reduction in delivery times and 25% fewer emissions), or MedicaTech (telemedicine and medical AI platform covering over 38% of the population in remote areas) well illustrate this logic: directly designing solutions exportable to other crisis contexts, from a very demanding testing ground.

Digital Services for Export: A Key Lever for Foreign Founders

The other major family of opportunities for an expatriate is everything that involves building from Lebanon a service structure largely focused on abroad. The idea is simple: take advantage of the local talent pool, the lower cost of living for salaries in strong currency, and the flexibility of the investment framework to target clients outside the country.

Among the segments particularly suited to this model:

The rise of clusters like Beirut Digital District (BDD) or Berytech makes this arbitrage even more credible: you can set up your operational headquarters in a coworking space with a decent internet connection, stabilized electricity, and an entrepreneurial community, while billing internationally.

“Real” Sectors: F&B, Real Estate, Agriculture, Environment

For expatriates who want a more tangible anchor than pure digital, certain sectors remain relevant, provided you fully integrate the reality of local purchasing power and political risk:

– restaurants and specialty cafés, chocolate shops, high-end bakeries, juice bars, specialty coffee shops, even microbreweries or seafood concepts;

– real estate, particularly short-term rentals in sought-after Beirut neighborhoods (Hamra, Achrafieh, downtown) or in mountain resorts and historic towns (Byblos, Tripoli);

– agriculture and organic farming, poultry farming, fruit farming, agricultural consulting;

– environmental solutions: solar panel installation, recycling, eco-friendly packaging, waste management.

These projects are more exposed to the local market and regulatory uncertainties, but the crisis has also created massive needs: access to healthy food, securing energy, valorizing waste, finding affordable housing.

Choosing the Right Legal Structure: SAL, SARL, Offshore, Holding, or Branch?

Lebanese law offers a fairly wide range of corporate forms, and most importantly, it does not make major discrimination between local and foreign investors. As an expatriate, you can hold 100% of the capital in most sectors (except specific limits: real estate, banking, telecom, media), subject to following the procedures.

Overview of the Main Types of Companies

The following table summarizes the main characteristics of the structures most used by investors, including foreigners.

In practice, a foreign founder launching a tech or services project most often opts for one of these four options: SARL, SAL, branch, or offshore/holding combined with a local operation.

The SARL: The Simplest Option for an SME or Services Startup

The Lebanese SARL (S.A.R.L.) is governed by a 1967 decree-law. It offers several advantages for an expatriate:

– moderate starting capital (around 5 million LBP, i.e., about $3,300);

– possibility of being formed by a single partner, even a foreigner, up to 20;

– liability limited to contributions;

– simpler functioning than an SAL (governance, publication obligations, etc.).

The SAL: For More Ambitious Projects, Access to Certain Sectors, and Fundraising

The Lebanese Joint Stock Company (S.A.L.) requires higher capital (30 million LBP, of which only one quarter needs to be paid up at incorporation), at least 3 shareholders, and a board of directors (3 to 12 members). It is suitable if you:

– aim for a capital-intensive project (industry, tourism, large tech);

– wish to benefit from certain IDAL schemes (see further);

– need a more “corporate” image for investors or institutional partners.

It is also the mandatory form for holdings and offshore companies.

Branch or Representative Office: Extending an Existing Structure

If you are already a director of a company in your country of residence, opening a branch in Lebanon is an option: zero minimum capital, but activities must remain within the scope of the parent company’s purpose, with taxation of the branch’s profits (15% + 10% tax equivalent to a withholding on dividends).

The representative office, on the other hand, is strictly limited to promotion, market research, liaison functions: it can neither invoice nor sign local commercial contracts. It is a prospecting tool, not a trading one.

Offshore and Holding: Powerful Tools, But for Specific Cases

Lebanese offshore companies are designed to conduct their activities outside the territory, or in free zones. They benefit from very reduced taxation: no income tax, fixed annual fee, exemption from withholding tax on dividends, neutrality on a large part of foreign gains. In return, they cannot operate on the domestic market, except for limited exceptions (real estate management related to their operations, etc.).

For many expatriates, a hybrid structure – a holding or offshore at the top, an operational SARL in Lebanon – can be interesting, provided you work with a local tax advisor who knows Lebanese rules and double taxation treaties well.

Understanding Taxation: An Attractive Rate, Special Regimes, and Incentives

Lebanon applies a corporate income tax of 17%, which places it in a reasonably competitive range regionally and internationally, with a territorial taxation system: in principle, only income from Lebanese sources is taxable locally for resident companies.

Main Lines of Corporate Taxation

For a “classic” SARL or SAL, the scheme is as follows:

– 17% tax on net profit (after deductions and depreciation);

– 15% on certain capital gains (resale of fixed assets, including medium-term securities);

– 10% withholding tax on income from movable capital (distributed dividends, interest, directors’ fees taken from profits, distribution of reserves, etc.);

– VAT of 11% on most goods and services, with a zero rate on exports and certain related operations, and exemptions for banking, financial, and insurance services.

Non-Residents and Foreign Service Providers

If your company in Lebanon works with service providers or subsidiaries abroad, specific withholdings apply on outgoing payments:

– 3.4% on payments for the purchase of goods from non-residents;

– 8.5% on payments for services from non-residents (rates raised in 2024).

These withholdings are paid quarterly. The challenge for an expatriate structuring a multi-jurisdiction group is to account for these costs in intra-group agreements and to check for the existence of bilateral tax treaties (with Cyprus, Malta, UAE, etc.) that may mitigate certain taxes.

Special Regimes: Holdings, Offshore, Export, Development Zones

Holdings and offshore companies have already been mentioned: they do not bear tax on profits, but specific taxes, making them optimization tools rather than local operating vehicles.

Two major schemes are particularly important for a foreign entrepreneur:

– the Package Deal Contract (PDC), reserved for large-scale projects (e.g., $10 M and 100 jobs in industry, $15 M and 200 jobs in tourism, $400,000 and 25 jobs in IT);

– the Investment Project by Zone (IPZ), aimed more at SMEs, with the level of exemption linked to the geographical zone (A, B, or C), with Zone C being the most generous (up to ten years of full exemption from income tax and dividends).

Added to these are more targeted regimes:

For an expatriate, the interest of these schemes depends on the project profile. A 10-person SaaS development studio may not necessarily need a PDC, but could benefit from the IPZ Zone C regime, or even the IT qualification giving access to incentives regardless of location. Conversely, a tourist complex, an agro-food factory, or a solar farm could derive substantial advantage from a PDC, at the cost of a heavier dossier and strict commitments regarding employment and impact.

Visas, Work, and Residence: What a Foreign Entrepreneur Must Anticipate

In terms of immigration, Lebanon remains relatively open, especially for nationals of Western countries, the Gulf, or certain Asian regions. But a clear distinction must be made between the short-stay business visa, the work visa, and the residence permit if you plan to run your business on the ground.

Short Stay: Business Visa and Visa on Arrival

For prospecting stays, negotiations, conferences, or meetings with partners and incubators, a simple business visa is generally sufficient. Depending on your nationality:

– you may benefit from visa-free entry (six countries);

– or a visa on arrival (82 countries);

– or a visa to be requested at the embassy, sometimes via a provider like VFS Global.

Business visas can be single, double, or multiple entry, with stays of 15, 30, or 90 days and an overall validity of 90 days. Fees vary ($35 for a single entry, $70 for a three-month multiple visa, other specific rates for certain countries like India).

Working and Managing a Company: The Mandatory Passage Through a Work Permit

As soon as you are not just visiting or supervising remotely, but actually managing the company from the territory, you fall under the scope of a work permit and residence permit.

Key rules to keep in mind:

– a tourist or business visa cannot be automatically converted into a work visa without a decision from the General Security; it is better to prepare your file in advance;

– the “classic” work visa is issued for three months, renewable once, and is obtained after prior approval from the Ministry of Labor;

For an investor-director, there is a specific regime: the “employer work permit”. It requires:

These conditions aim to prevent foreign consultants from artificially registering as “investors” to bypass local labor quotas. They must be integrated into your initial financing plan.

Procedures, Times, and Documents

The work visa procedure involves:

– a file to be submitted before the trip to a Lebanese representation or via a representative in the country;

– supporting documents: contract or employer letter (or company statutes for the investor), proof of financial means, criminal record extract, health insurance, proof of accommodation, etc.

Processing times vary greatly:

– about 2–3 business days for an executive or director whose application is processed directly by the embassy;

– up to 6–8 weeks when authorization from the Directorate General of General Security is required.

The essential thing for an expatriate founder is not to underestimate these timelines in your launch schedule, and to absolutely avoid working without the appropriate permits: the risk of subsequent refusal of entry, detention, or deportation is not theoretical.

Incorporation Procedure: From Name Reservation to Registration

Despite a heavy and sometimes arbitrary administrative environment, the formal procedure for incorporating a company remains relatively structured and codified.

Steps Common to Most Structures (SARL, SAL)

In simplified terms, the process looks like this:

Cumulative times are generally around 10 to 15 business days once the documents are ready, sometimes up to 2–3 weeks depending on the complexity of the file and the responsiveness of the various administrations.

Setup Costs: What to Plan For

Incorporation costs vary depending on:

– the type of company (SARL less expensive than an SAL);

– the share capital (fees are often proportional);

– the fees of your lawyer and notary.

As an indication, for a basic structure (SARL, SAL, holding, or offshore), the overall entry ticket – including consulting fees, notary fees, registration fees, and account opening – is often estimated from about $3,400. You must add the capital itself (minimum $3,300 for an SARL, $20,000 for an SAL), of which only a fraction needs to be deposited initially for an SAL.

In return, you benefit from a legal environment that, on paper, treats foreign investors like locals, with freedom of capital transfer, no formal exchange controls (beyond the de facto constraints of the banking crisis), and a reasonable tax rate.

Financing: Venture Capital, Circular 331, Banking Conditions

On paper, Lebanon presents itself as a free enterprise market, with a developed banking tradition and an investor-friendly environment. In post-2019 reality, the banking system is insolvent, many dollar accounts are “trapped,” and banks have imposed informal controls on withdrawals and transfers.

Venture Capital and Public Programs

Despite these dysfunctions, the startup ecosystem has continued to raise funds. In a recent year, Lebanese startups attracted $150 million in venture capital investments, with $80 million captured in 2022 alone. Players like MEVP or Berytech, supported by Central Bank schemes like Circular 331, have backed dozens of projects, particularly in technology, fintech, healthcare, and content.

Accelerators like Flat6Labs, Speed (incubated at BDD), IdeaLab, or programs like Lebanon Innovate Soft-Landing, offer:

For an expatriate founder, these programs can play a key role, not only to raise an initial round, but above all to enter the local circles (investors, lawyers, administrations) and reduce the cultural learning curve.

Relations with Banks: Accounts, Restrictions, and Dollarization

On the banking front, you need to be very cautious. The great legal principles – strict banking secrecy, free movement of capital, multi-currency – clash with post-crisis reality:

– impossibility, in many cases, to freely transfer dollars deposited before 2019;

– drastic restrictions on transfers abroad;

– increased reluctance of international banks to deal with Lebanese institutions.

Concretely, if your model is oriented towards exports with invoicing in strong currency, you will aim to:

– collect your revenues abroad on accounts outside Lebanon or on a “fresh dollars” account;

– limit as much as possible your assets held in the local banking system beyond what is necessary for your current payments.

Opening a corporate account requires a complete file (statutes, registration extract, commercial circular, minutes, identity documents of beneficial owners, etc.), often legalized and translated depending on the case. The timeframe, barring compliance complications, is between 5 and 15 business days.

Cost of Living: A Competitive Advantage for an Entrepreneur Paid in Foreign Currency

For an expatriate who receives their income in strong currency (euro, dollar, dirham), Lebanon has become, since the pound’s collapse, paradoxically very affordable. Beirut remains expensive for locals, but for a foreigner, the price/quality ratio is attractive.

Housing, Utilities, Salaries: Key Parameters for Your Business Plan

Here are some orders of magnitude (all amounts in USD):

– rent for a 1-bedroom in downtown Beirut: around $770/month, with a range of $500‑$1,020;

– outside the center, $435 on average, sometimes $300‑$500;

– in more outlying or rural areas, it is possible to find large apartments for about $200/month;

– basic utilities (electricity, water, heating, garbage) for an 85 m²: about $180/month;

– unlimited high-speed internet: ~$37/month;

– mobile plan with data: ~$20/month.

The average net salary in Beirut is estimated around $1,000, but the real median is much lower (about $229 after tax, covering only one-fifth of typical monthly expenses). For an entrepreneur who pays their employees in dollars or equivalent, it is therefore possible to offer salaries perceived as high locally, while remaining well below European or Gulf levels.

The following table illustrates some useful budget benchmarks for a foreign founder.

For a small team of 5 to 10 people, the payroll and cost of workspace therefore remain very competitive regionally. This is a central argument for export services models: you can generate an interesting margin from fees invoiced in strong currency.

Coworking: A Flexible Base for a Foreign Founder

Rather than renting a traditional office, many entrepreneurs (local and foreign) set up in coworking spaces, particularly well-developed in Beirut:

Rates remain reasonable for a founder:

Choosing a coworking space allows you to:

– reduce the initial investment (no renovations, little furniture to buy);

– benefit from more stable electricity than in a classic building;

– tap into a network of peers, mentors, investors.

Business Culture: What an Expatriate Must Really Understand

The success of an entrepreneurial project in Lebanon is not solely about the numbers. The cultural dimension is central. You operate in a society where honor, family reputation, loyalty, and network matter at least as much as contracts.

Personal Relationships Come First

Business is conducted in a climate where: uncertainty and rapid change are common.

– communication is often indirect, especially on sensitive topics;

– politeness and preserving the other’s “honor” take precedence over brutal frankness;

– decisions are largely made based on personal trust, rather than solely on the technical file.

It is not uncommon for a partner to assure you of their agreement to “not put you in a difficult position” socially, while not actually intending to conclude. This is disconcerting for a Westerner used to direct answers, but it is a form of face-saving management. You must therefore learn to read non-verbal signals, ask clarifying questions without aggressiveness, and verify commitments in writing without giving the impression of doubting the other person.

Negotiation, Long Time Horizons, and the Importance of Network

Negotiation is practiced as an art, with:

For an expatriate, this means planning for longer closing cycles and resisting the temptation to “force” the conclusion. Getting angry or losing patience in public is frowned upon and can ruin months of relationship-building efforts.

Network – family, college friends, religious community, diaspora – remains a decisive shortcut. A word of recommendation from a respected contact opens doors that months of cold emails will never breach. Hence the importance, upon your arrival, of:

– attending events at hubs like BDD, Berytech, FoundersBei, antwork;

– taking the time for coffees and dinners, which are often more productive than formal 30-minute meetings;

– staying in frequent contact (WhatsApp, calls) with your interlocutors even in the absence of an immediate topic.

Social and Professional Codes

A few pointers to avoid faux pas:

Meals play an important role: they serve as much to evaluate the person as to discuss the project. You will be encouraged to take second helpings; refusing to taste anything at all is poorly perceived, but you can politely decline after a second serving.

For foreign female entrepreneurs, the patriarchal culture can still be felt, even though the tech environment is more open. Being introduced by a senior male colleague at the start can facilitate credibility, but ultimately, it is your competence, consistency, and ability to read local customs that will make the difference.

Macro Risks and Structural Constraints: Integrate into Your Strategy

It would be irresponsible to only talk about opportunities without clearly addressing the risks.

Political and Security Instability

The political landscape is fragmented, with a transitional government, no president, and strong influence from non-state armed actors. The country remains officially in a state of war with Israel, and despite a negotiated ceasefire, sporadic clashes persist, especially in the South.

For your business, this means: the importance of adapting to market changes and optimizing your strategies to remain competitive.

– a risk of military escalation that can disrupt logistics, scare off some foreign clients, or skyrocket insurance costs;

– an environment where some regions are more volatile than others, which argues for a primary base in Beirut or its immediate surroundings, which are more stable and better connected.

Failing Infrastructure and Public Services

The structural difficulties are well documented:

Your operational strategy must take this into account:

– plan for generators or choose a coworking space/building already properly equipped;

– limit exposure to procedures where local arbitration is the only recourse;

– contractualize as much as possible with foreign clients and suppliers, subject to more predictable jurisdictions.

Corruption, Bureaucracy, and Commercial Risk

The country ranks very low on the corruption perception index (154th out of 180), with a set of frequent obstacles: outdated regulations, arbitrary licenses, complex customs, weak intellectual property protection.

For an expatriate, two main lines of defense:

– surround yourself with a solid local firm (lawyer, tax advisor, accountant) that knows the practices and can filter risky ones;

– stay strict on compliance, especially if you work with Gulf countries, the EU, or the United States, to avoid exposing your group to extraterritorial sanctions.

The most robust strategy for a young foreign company in Lebanon is often to: partner with local players. This not only helps navigate the complex business landscape but also benefits from deep local knowledge of markets, consumer preferences, and regulations.

– limit interactions with public markets and hyper-regulated sectors as much as possible;

– focus your business relationships on private, ideally international actors, or on the diaspora.

In Summary: For Which Profile of Expatriate Is Lebanon a Good Entrepreneurship Terrain?

Creating a business in Lebanon is neither a sinecure nor sheer madness. It is a calculated bet, which can be very rewarding for certain specific profiles:

For these profiles, the country offers: access to unique professional opportunities, continuing education programs, and a diverse work environment.

– a pool of young talent, especially in software engineering, AI, fintech, content;

– reasonable corporate taxation (17%), with very advantageous specific regimes for certain structures (holding, offshore, IDAL projects);

– a cost of living and work that has become relatively low for those earning in strong currency;

– a vibrant startup scene, supported by hubs like BDD, Berytech, antwork, and still-active venture capital.

But this potential must not make you forget:

– macroeconomic and banking fragility;

– political and security risk;

– insufficient infrastructure, heavy bureaucracy, and a high level of corruption.

The right approach for a foreign entrepreneur therefore remains pragmatic and modular: structure your project legally in a solid and optimized way, operationally rely on hubs that mitigate material constraints, anchor your revenue outside the country as much as possible, and invest above all in what is still Lebanon’s strength: its people, its networks, and its ability to innovate amid turmoil.

Cyril Jarnias

Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.

On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.

Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.

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