The Cost of Living Index (CPI) in Lebanon is 42.58, indicating an affordable cost of living compared to NYC. Groceries (36.70) and restaurants (45.30) are also relatively inexpensive.

The Property Price to Income Ratio in Lebanon is 16.39 years, indicating a very expensive housing market. The Rent Index is 13.22, suggesting that renting is significantly more affordable than buying.

The Purchasing Power Index is 41.71, indicating low purchasing power compared to NYC, suggesting that average incomes are relatively low.

Lebanon has a progressive personal income tax system with rates ranging from 2% to 25%. The standard Value Added Tax (VAT) is 11%, though a 2024 draft budget proposed an increase to 12%. Property tax is progressive, from 4% to 14% on built property. Non-residents face withholding taxes on services (8.5%) and goods (3.4%).

Lebanon's business environment is severely impacted by a prolonged economic downturn, political instability, and infrastructure issues. The country ranked 143 out of 190 in the World Bank's 2020 Ease of Doing Business report. Challenges include limited access to funding, talent drain, and bureaucratic hurdles, though there are efforts to support a resilient startup ecosystem.

Lebanon recently enacted a landmark law in December 2023 establishing a comprehensive pension system for private sector workers, replacing the previous end-of-service indemnity with lifetime pensions. The National Social Security Fund (NSSF) provides healthcare coverage, though foreign employees may have limited access to some benefits. The social safety net is undergoing reforms amid economic challenges.

Lebanon's banking sector is in a severe crisis, with foreign currency deposit freezes and restrictions on transfers. While the National Institute for the Guarantee of Deposits (NIGD) exists, a proposed Financial Stabilization and Deposits Repayment Act (passed December 2025) aims to repay eligible deposits up to USD 100,000 in cash over 4-6 years, with larger amounts converted to securities. Lebanon is on the FATF grey list for AML/CFT deficiencies.