Investments
Encouragements and Legal Protection for the Investor
Please see summary of the laws designed to encourage foreign and local investments in Libya. These laws provide many privileges and incentives to the local and foreign investors.
Privileges and Exemptions
The investment project, subject to the provisions of these Laws, shall enjoy the following privileges:
(1) Exemption of the machinery, equipment and apparatuses necessary for the execution of the project, from all taxes, customs duties, import fees, service charges and other fees and taxes of a similar nature. However, exemptions stated, as per this clause, shall not include fees levied for services as port, demurrage or handling fees.
(2) Exemption of facilities, spare parts, transport means, furniture, requirements, raw materials, publicity and advertising items, related to the operation and management of the project, for a period of 5 years, from all fees and taxes, whatsoever their type or source.
(3) Exemption of commodities produced for export, from production tax, customs duties and such charges imposed on exports.
(4) Exemption of the investment project from income tax for any activity for a duration of 5 years, the calculation of which shall commence from the date of the permission for licensing the engagement in the activity.
(5) Exemption of the returns of shares and equities, arising from the distribution of the investment project’s interests, during the period of exemption, as well as interests arising from the merger, sale, division or change of the legal form of the project, from all types of taxes and levies, provided these occur during the period of exemption.
(6) Exemption of interest arising from the project’s activity if re-invested.
(7) Exemption of all documentary records, registers, transactions, agreements that are made, ratified, signed or used by the investment project, from the stamp duty payable in accordance with the effective legislation. The investor may carry forward the losses that the project may incur during the exemption years to the following years. The Executive Regulation of this Law shall decide the conditions and rules necessary for the execution of this Article.
Investor’s Rights
The investor shall have the right to the following:
(1) Open a bank account, in favour of his project, in the local currency or foreign currency with any of the banks operating in the country.
(2) Receive financial loans from local and foreign banks and financial institutions, according to the legislation in effect.
(3) Re-export the invested foreign capital, in the case of the termination of the project’s duration, liquidation, or sale thereof, either in part or in whole.