Taxes and Tax Schemes in Egypt | What You Need to Know in 2025

Egypt, a country rich in history and strategically located between Africa and the Middle East, operates a comprehensive tax system that affects both residents and non-residents. Located at the crossroads of three continents, Egypt combines emerging market opportunities with ongoing economic reforms, making it increasingly relevant for international professionals and businesses.

The country's economy, driven by sectors like tourism, manufacturing, and the Suez Canal revenues, has shown resilience through various challenges. Egypt's tax system balances the need for revenue with attracting foreign investment. Recent reforms have focused on digitalizing tax administration and simplifying procedures for foreign investors.

The expat community in Egypt is diverse, with many professionals drawn to sectors like oil and gas, education, and international organizations. The tax system, while comprehensive, offers various benefits and exemptions that can significantly impact an expat's financial planning.

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Egyptian Income Tax

Egypt employs a progressive income tax system with rates ranging from 0% to 27.5%. Tax residents face the following income tax brackets (as of 2025):

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Social insurance contributions are mandatory, with rates varying based on sector and employment type.

If you want to have a better understanding of the taxes you should pay on personal income in Egypt, you can use the personal tax calculator in the Taxation section of the Egypt page.

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Egyptian Tax on Overseas Income

Egypt's treatment of foreign income follows a territorial principle with some modifications:

• Tax Residents: Taxed on worldwide income from employment, but only Egyptian-source income for other categories
• Non-residents: Taxed only on Egyptian-source income
• Foreign Income Relief: Available through tax treaties

Special considerations apply to income earned in free zones and special economic zones.

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Egyptian Tax on Investments

Investment income in Egypt receives specific treatment under tax law:

• Capital Gains: 10% on listed securities for residents
• Dividends: 10% withholding tax, with exemptions available
• Interest Income: 20% withholding tax
• Rental Income: Taxed as regular income with deductible expenses

The system includes various exemptions for investments in certain economic sectors and zones.

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Egyptian Corporate Taxation

Corporate taxation in Egypt is structured as follows:

• Corporate Income Tax: 22.5% standard rate
• Suez Canal Zone: Special rates available
• Value Added Tax (VAT): 14% standard rate
• Branch Profits Tax: Additional 5% on distributed profits

Special rates apply to oil and gas companies and other strategic sectors.

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Special Tax Regimes

Egypt offers several special tax arrangements beneficial to international business:

Free Zones: Complete tax exemptions for qualifying projects.

Special Economic Zones: Reduced tax rates and simplified procedures.

Investment Law Benefits: Tax holidays and reduced rates for strategic projects.

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Regional Comparison

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Tax Planning for Egypt

Effective tax planning in Egypt requires attention to several key areas:

Residency Planning: Understanding the 183-day rule and its implications for taxation.

Investment Location: Evaluating free zones versus mainland operations.

Employment Structure: Optimizing compensation packages for tax efficiency.