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Investment Incentives in Libya

The Government of Libya encourages foreign direct investments by offering several investment incentives. There are incentives for Free Trade Zones and for foreign investment partnerships.

Free Trade Zones

Incentives

  • Low energy prices
  • Liberal and relaxed social laws.
  • Health insurance.
  • Ownership of land and property.
  • Project ownership transfer between investors.
  • Exemption from custom duties and taxation.
  • Exemption from tax on earnings only if reinvested
  • Free repatriation of invested capital and earned profits
  • Exemption from registration in the trade or industrial registers.
  • Guarantees against nationalization, dispossession and confiscation.
  • Free movement of capital and products between the FTZ and foreign countries
  • International seaports and airports and land transport services to African countries.

Foreign Investment Partnerships

Incentives

  • Exemptions from all customs duties and taxes associated with the importation of machinery, tools and capital equipment required for the execution of the project together with other taxes of similar impact
  • Similar exemptions ranging for a period of five years shall be granted for the importation of primary materials, spare parts and supplementary equipment for the operation of the project.
  • Profit income generated from the activities of the project shall be exempted from income taxes for a period of five years. Depending on the nature of the project and performance, this period is extendable for an additional three years. Reinvested profits enjoy the same exemption rights.
  • The additional extension period of custom duties and income exemption shall be subject to special criteria adopted by the Foreign Investment Board on basis related to investment projects that contribute to particular area developments, food production operations, water and energy conservation projects and protection of the environment.
  • Exemption from the stamp duty tax imposed on bills (invoices) and related commercial documents.
  • Projects engaged in the production of goods for exports are exempted from production taxes, fees and other related taxes when export transactions take place.
  • The law provides adequate protection to all investment projects against exceptional measures such as nationalization, expropriation, trusteeship, asset freezing or other actions of similar effect. If such actions are justified by a law or a court decision, it can only be effected, indiscriminately and subject to a fair value of compensation in foreign currencies transferal within a period not exceeding one year.

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