Libya

{"ftc_utility":"medium","fbar_trigger_notes":"US persons with Libyan bank accounts exceeding $10,000 in aggregate must file FinCEN 114 (FBAR). Maintaining a Libyan bank account as a US expat carries significant practical and compliance risk given Libya's banking sector instability and US sanctions-related due diligence requirements.","ftc_utility_reason":"Libya taxes employment income at progressive rates up to 20%, which is lower than US rates. Foreign Tax Credits can offset some US tax liability on Libya-source earned income, but the top Libyan rate of 20% will not fully shelter US tax obligations at higher income levels. The FEIE is generally more advantageous for most expats in this context.","presence_day_count_notes":"Libya is rated Level 4 - Do Not Travel by the US State Department. Most US citizens cannot obtain normal work visas or establish legal residence under stable conditions. The 330-day physical presence test is theoretically applicable but practically very difficult to satisfy given security conditions and the absence of a functioning US Embassy in Libya since 2014. Days in Libya can count toward the 330-day test regardless of visa status.","typical_qualifying_method":"physical_presence","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":32000,"local_tax_rate_on_earned_income":0.2,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Foreign pension income received by a Libya-resident individual is subject to income tax at progressive rates up to 20% under domestic law. No treaty relief is available.","tax_rate":0.2,"locally_taxed":true},"social_security":{"notes":"No US-Libya totalization agreement or tax treaty exists. US Social Security benefits received by a Libya resident are not protected by treaty and are in principle taxable as income under Libyan law.","locally_taxed":true,"treaty_protection":false},"roth_distributions":{"notes":"No treaty exemption applies. Roth distributions could be treated as income under Libyan domestic law, though the absence of a tax treaty and limited administrative capacity make enforcement unpredictable.","locally_taxed":true},"us_401k_ira_distributions":{"notes":"No US-Libya income tax treaty exists. Distributions from US 401(k) or IRA accounts received by a Libya-resident individual would in principle be subject to Libyan income tax as foreign-source income at progressive rates up to 20%. Practical enforcement is uncertain given Libya's governance environment.","tax_rate":0.2,"locally_taxed":true,"treaty_protection":false}}

{"rate":0.2,"notes":"Libya does not have a separate capital gains tax. Gains are folded into general income and taxed at progressive rates up to 20%. Corporate gains are subject to corporate income tax at a flat 20%.","details":{"tax_type":"Capital Gains Tax","country_name":"Libya","country_iso_code":"LBY","source_references":["PwC Worldwide Tax Summaries - Libya","Law No. 7 of 2010 (Libya Income Tax Law)"],"last_verified_date":"2026-06-03","general_description":"No standalone capital gains regime exists. Gains realized by individuals are treated as ordinary income under Law No. 7 of 2010 and taxed at progressive rates up to 20%. Corporate capital gains are taxed at the flat corporate rate of 20%.","corporate_capital_gains":{"rate":0.2,"tax_treatment":"Taxed as ordinary corporate income at the flat 20% corporate income tax rate."},"individual_capital_gains":{"rate":0.2,"tax_treatment":"Taxed as ordinary income at progressive rates; top marginal rate is 20%."}}}

{"notes":"Dividends paid to non-residents are subject to withholding tax. Libya imposes a withholding tax on dividends distributed by Libyan companies. The standard withholding rate on dividends to foreign recipients is generally 5%, though the Libyan tax framework is not fully codified in the same manner as OECD jurisdictions and enforcement is variable due to ongoing governance instability.","rates":[{"rate":0.05,"type":"withholding","notes":"Withholding tax on dividends paid to non-residents. Rate derived from Libyan income tax law provisions; no comprehensive double tax treaty network exists to modify this rate for most recipients."}]}