Lebanese lawmakers have introduced a proposal to establish a “golden visa” program aimed at attracting foreign investment amid the country’s ongoing economic crisis. The draft legislation would grant special tax residency status to foreigners who invest at least $1 million in Lebanon, either through a bank deposit, property acquisition, or other forms of investment, and who spend at least 90 days annually in the country.

Under the proposed scheme, qualifying individuals would receive residency rights and be exempt from taxes on income derived from shares and movable assets held abroad. They would also be exempt from inheritance tax on assets located outside Lebanon, although income and assets within Lebanon would remain subject to normal taxation. Lebanese citizens living overseas could also obtain tax residency by paying $500,000.

Finance Minister Yassine Jaber, who proposed the law, stated that the program was modeled on similar tax residency initiatives in Dubai, Italy, and the United Kingdom’s now-defunct non-domicile rule. Proponents argue that the measure could help bring much-needed capital into Lebanon, which has been grappling with a severe financial crisis and a collapsing banking system.

However, the proposal has drawn criticism from lawmakers and tax experts who question its practicality and timing. Independent parliamentarian Ibrahim Mneimneh expressed skepticism about attracting investors to deposit significant sums in Lebanese banks, citing concerns over the country’s unstable and poorly regulated financial institutions.

Karim Daher, a Lebanese tax lawyer who has been involved in efforts to improve Lebanon’s compliance with international anti-money laundering standards, warned that the new tax residency status might not be recognized by other countries’ tax systems. This could result in applicants continuing to face taxation abroad despite holding Lebanese residency. Daher also raised the possibility that the law could face constitutional challenges within Lebanon.

The proposal received support from Hezbollah lawmakers and parliamentary finance and budget committee head Ibrahim Kanaan during a parliamentary debate last Thursday. Nevertheless, the law was sent back to committee for further consideration as lawmakers remain divided over the details.

Critics argue that implementing such a scheme before comprehensive reforms to Lebanon’s banking sector and clarity on the treatment of depositor losses would be unwise. Political disagreements over how to allocate the financial burden between the state and banks have delayed progress on related legislation, leaving Lebanon’s economic recovery efforts in a state of uncertainty.