Residency, Real Estate, & Cryptocurrency in Lebanon
NOTE: This article was written and published on the Ghost.io hosted ExitStrategy.World site on September 11th (US time)/September 12 (Egypt time) 2023, weeks before the Israel-Hamas War exploded on October 7, 2023 and threatened to expand into an Israel-Hezbollah regional war with numerous skirmishes and exchanges of missile salvoes and air strikes along the Israel-Lebanon border.
Due to its low cost of living and highly educated and online workforce, Lebanon is one of the countries that our community founders anticipate will be a big part of the global 'repat' market trend over the next decade. As with the Armenian Diaspora, the majority of Lebanese on this planet live outside their ancestral homeland. Consequently we asked ES.W's Egypt-based MENA Regional Editor Ahmed (for non-Arabic speakers, a pen name meaning "greatly praised" or "commendable") to write this article as an introduction to the basic residency requirements in this beautiful Mediterranean country.
While the majority of people who will be interested in this article will either be Lebanese nationals or their children and grandchildren looking to return and/or acquire real estate in the country, with approximately 50% of the population Francophone in addition to speaking Arabic (or English), Lebanon is also poised to attract French expats and Canadiens in the coming years.
– James Smith, Editor-in-Chief and Publisher, www.ExitStrategy.World
A Comprehensive Guide to Lebanon, including acquiring Residency and Property in Beirut, and the New Opportunities for Acquiring Lebanese Real Estate Created by Cryptocurrencies
This article aims to provide invaluable insights into the processes and procedures involved in obtaining residency status and navigating the real estate market in Beirut, Lebanon, alongside informing the reader about the Cryptocurrency sector in the country of Lebanon. From understanding the legal requirements and documentation for residency applications, exploring the intricacies of buying or renting a property in the city, or even talking about the attractions of Lebanon in the aforementioned Cryptocurrency sector or the cultural and natural beauty of the country, this guide offers essential information for both expatriates and foreign investors looking to establish themselves in Beirut.
The Basic Requirements for Obtaining Residency in Lebanon
Important to note that there are 5 main types of visas that foreigners can obtain in Lebanon, tourist, business, work, transit, and resident visa, with several other subcategories.
To obtain any of the 5 visas, you need to have the following valid documents which will depend on what type of visa you are applying to, all of these documents must be submitted to a Lebanese embassy or consulate.
1) A visa application form
2) Valid passport
3) A copy/copies of your passport
4) Residence Permit
5) Recent passport-size photo
6) Bank statement for the last three months
7) Proof of address/destination in Lebanon such as a hotel or reserved rental apartment
8) Proof of return ticket
9) Confirmation of employment The letter should include your current position and salary.
There are also some extra documents, for example, if you are applying for a student visa, you must submit a letter of admission from the Lebanese educational institution and proof that you have sufficient funds to pay your tuition.
If you are applying for a work visa, you must also have your approval letter from the Lebanese Ministry of Labor and other documentation that may be required by the government on a case-by-case basis, although your employer should be able to handle it.
As for Residency Permits, here are the following categories which will allow you to have a residency permit, some of these permits we have already discussed earlier in detail.
1) Employment Residency Permit: You may apply for an employment residency permit if you have a job offer from a Lebanese employer. The employer will typically need to sponsor your residency and provide relevant documents supporting your employment status.
2) Family Reunion Residency Permit: If you have close family members who are Lebanese residents or citizens, you may be eligible to apply for a family reunion residency permit. This typically applies to spouses, children, and parents of Lebanese residents or citizens.
3) Student Residency Permit: If you are enrolled in an accredited educational institution in Lebanon, you can apply for a student residency permit. You will need to provide proof of enrollment and other necessary documents.
4) Retirement Residency Permit: Lebanon offers a residency permit for retirees who meet specific financial requirements. You may need to demonstrate a certain level of income or savings to be eligible for this type of permit (read the note below at number 5)
5) Investor Residency Permit: If you plan to invest a significant amount of money in Lebanon, you might be eligible for an investor residency permit. The investment amount required can vary based on government regulations.
Note: Due to the turbulent economic situation in Lebanon, the changes to the business/investor-related requirements may come at a moment's notice, so please get in touch with the the Lebanese embassy in your country to be informed.
6) Humanitarian Residency Permit: In certain exceptional circumstances, such as for refugees or asylum seekers, there might be provisions for a humanitarian residency permit. It's important to note that the temporary residency permit lasts for one year, and the permanent residency permit lasts for three years.
The Economic Situation in Lebanon
The current economic crisis started in 2019, which led to a rapid deterioration of the Lebanese pound (LBP). This made it difficult for Lebanese citizens to be able to afford basic goods and services. Severe banking measures were enacted, such as limiting the withdrawal of US dollars and other strict capital controls. But these banking and capital controls did not help the situation.
In Lebanon, there are many factors that led to the current situation as of autumn 2023. Political instability and the polarization of society along sectarian lines, mismanagement of public funds, corruption, and a fiscal policy that was deemed too risky by the International Monetary Fund is just a small amount of the factors that led us to the present.
As of 2023, Lebanon is still engaging with the IMF and other international institutions to address the economic crisis, but considering the political deadlock, it is unlikely that a solution will be found soon.
Lebanon - The Beauty of Nature and its People
Lebanon is a land of beauty, where nature blends with the rich cultural heritage going back to Syro-Phoenicia in Biblical Antiquity. The legendary Phoenician sailors and their colonist families founded Rome's ancient rival Carthage on the North African coast. For its small size, Lebanon boasts of abundant biodiversity and epic landscapes, having majestic palm-lined Mediterranean beaches, with winding roads rising in elevation from the coast upward to mountain ranges with winter skiing.
The city of Beirut is also a city that is a mix of tradition and modernity, for the old quarters have ancient roots, yet remain captivating to the 21st century expat, with the modern quarters are full of interesting nightlife.
Mount Lebanon and the Anti-Lebanon Range are often dressed in blankets of snow during winter, while spring and summer adorn them with vibrant wildflowers and lush greenery, which leads to breathtaking scenery for all seasons.
As for the people, the history of Lebanon is rich due to the history of the Lebanese. The Lebanese people are known for their warmth and hospitality, and welcome visitors with open arms. Their vibrant and diverse culture is a beautiful tapestry woven with influences from the ancient Phoenician/Caananite, Greco-Roman, Byzantine and Arab civilizations. This heritage is reflected in their art, music, cuisine, and traditions, making every experience in Lebanon a captivating journey through over 3,000 years of history.
Lebanese cuisine is a delight to the senses, from traditional mountain cuisine to the cuisines of the coast, which has the influence of the ancients of old and the people of new--you can eat authentic Shawarma or fresh Mediterranean seafood.
The Lebanese people are also traditional, although liberals and other signs of modernity do exist in the Lebanese landscape, the vast majority of the population is rooted in traditions spanning centuries. Those traditional religions include the Druze minority, the Marionite Catholic and Greek Orthodox Christian confessions, as well as the Sunni and Shia Muslims, who form a plurality.
Real Estate in Beirut
Locals and foreign investors find it a hard time to purchase real estate at stable and predictable prices due to the economic crisis. Some investors have been totally deterred from further investments in Lebanon due to the crisis.
The rental market also experienced significant changes during the severe inflation. Rents fluctuated and landlords faced challenges in setting rental rates that could keep up with inflation, while also accommodating the budgets of their tenants. However, the cheapest apartments for rent are generally found around $200 a month, which is generally affordable for foreigners. Most foreigners in Beirut live in the greater downtown area.
The real estate sector sadly has slowed the construction of new buildings due to the recent economic crisis. However, opportunities exist that if correctly utilized can reignite the real estate sector. The people of Lebanon are generally known across the Middle East for having a hard work ethic and a strong entrepreneurial spirit. So inflation by itself is not a good reason to avoid the real estate sector in Lebanon. Given the right amount of funding, goals, and security, the real estate sector can boom once again.
The 2006 Israel-Hezbollah War and fears of a second war with the Israelis and regarding the generally unstable political situation, alongside the presence of Palestinian camps and the civil war in neighboring Syria have kept many non-Middle Eastern investors away from the Levant. Indeed the economic situation in Lebanon remains precarious, but several nations have gone through worse crises and rose from the ashes of hyperinflation.
I remind the reader that due to the economic crisis, many properties in Beirut had their values drop significantly, so there are good options for long-term investment, once the economy stabilizes. Especially if said real estate has a significant potential for tourism and appreciation in the coming years and decades.
The role of Cryptocurrency in Lebanon
Due to the economic situation in Lebanon, several businesses and people have adapted to using Cryptocurrency in Lebanon. Cryptocurrency is decentralized, private, and exists outside the formal limits of Lebanese banking institutions. Although it is illegal in Lebanon to deal in Cryptocurrency, such laws are rarely, if ever enforced. The same situation applied to Venezuela and other countries where fiat currency has depreciated in value significantly.
Crypto Mining in Lebanon usually operates in either Beirut or the Chouf mountains due to stable electricity supplies to these most economically critical areas of the country. Economic opportunities provided by cryptocurrency are, by all reports, very attractive and much better than other opportunities given by the traditional financial system in Lebanon.
Cryptocurrency is also thought of in Lebanon as a way to protect the value of money that the residents maintain, as a way to preserve wealth. Cryptocurrencies, in theory, would have acted as hedges against inflation as the value of said cryptocurrencies are not tied to the local currency and its fluctuations.
However, considering that cryptocurrency itself can fluctuate severely, this method may not be ideal without the ability to swiftly liquidate from BTC to USD or gold. Also, since cryptocurrency is decentralized and borderless, and considering the capital controls the central bank has enacted, Cryptocurrency remains one of the most alluring methods to transfer funds without the need to pass through the traditional limitations imposed by Lebanese banks.