Taxes in Egypt 2026: rates for individuals and business, residency

How the Egyptian tax system works

The Egyptian tax system rests on several pillars familiar to any investor: personal income tax, corporate income tax on company profits, value added tax (VAT), property tax and a set of special levies - on capital gains, withholding tax and stamp duties. All of this is administered by the Egyptian Tax Authority.

For someone used to European rates, the overall picture looks friendly: the key taxes in Egypt are lower than in most EU countries, and a number of income types are exempt altogether. But gentle rates do not mean you can act at random. In recent years Egypt has been actively reforming its taxes, moving reporting to an electronic format and tightening control over the source of funds, especially when it comes to large investments by non-residents.

It is important from the outset to separate two concepts that are often confused. Citizenship or a residence permit is one thing. Tax residency is another. These are different legal statuses, and holding an Egyptian passport does not in itself turn you into a tax resident of Egypt. We will discuss this in detail in a separate section, because it is exactly here that foreign investors make the most mistakes.

Personal income tax: a progressive scale

Personal income tax in Egypt is progressive. This means the rate rises with income: the first few thousand pounds are not taxed at all, while the highest incomes fall under the top rate, which in 2026 reaches approximately 27.5%. The more you earn, the higher the effective burden - a logic familiar from many countries.

The system has a tax-free minimum (the personal allowance), which was recently raised to roughly 20,000 Egyptian pounds (EGP) per year. Below a certain annual threshold, income is not taxed at all, and beyond it the brackets of the scale come into play. The exact bracket thresholds are revised periodically - the legislator adjusts them each year in line with inflation and the pound's exchange rate, so the specific figures should be verified at the time of the transaction.

Salaries, income from business and professional activity, and a range of other receipts are taxed. For employees the tax is usually withheld at source by the employer and remitted to the budget. The self-employed and entrepreneurs declare their income themselves. For an investor who is not employed in Egypt, this scale is most often indirect - it matters if you plan to run an active business there or to relocate.

Taxes in Egypt 2026: the rates in one table

So that you don't have to keep all the figures in your head, let us bring Egypt's main taxes together in a single summary table. This is a reference point for grasping the scale of the burden, not a personal calculation - the exact values depend on your situation, your residency status and the current wording of the law.

Note that taxes in Egypt are structured so that the burden depends heavily on the type of income. Passive income, dividends and capital gains are taxed at their own, usually lower, rates than active employment income.

Corporate tax: 22.5% on company profit

Business taxes in Egypt begin with corporate income tax. The standard rate is around 22.5% on a company's net taxable profit. This applies to most types of activity. The exception is oil-producing and oil-exploration companies, which are subject to a substantially higher rate (about 40.55%), along with separate regimes for certain industries.

The residency principle for companies works the same way as for individuals, but in corporate terms. An Egyptian company that is a tax resident pays tax on its worldwide income. A foreign company that is not a resident is taxed only on Egyptian-source income. That is why the ownership structure and the place of actual management of the business have a direct bearing on the final burden.

The corporate tax return is generally filed within four months after the end of the financial year. For companies on a calendar year, that means a deadline of the end of April. Egypt is steadily digitising tax administration: electronic invoices (e-invoicing) and electronic receipts have become mandatory, and when opening a business this must be built into your accounting from day one.

VAT in Egypt: the standard 14% and the exceptions

VAT in Egypt (Value Added Tax) is one of the key indirect taxes. The standard rate is 14% and applies to most goods and services. It is a consumption tax: in practice it is paid by the end buyer, while the business acts as an agent that collects the tax and remits it to the budget.

Alongside the base rate there are reduced and zero categories. Export operations, in particular, are zero-rated (0%) - standard global practice that supports exporters. Certain goods and services fall under a reduced rate or an exemption - for example, a range of basic foodstuffs and medicines. For some categories special rate schedules are set.

A business must register for VAT once the annual turnover threshold is reached (approximately 500,000 EGP); below the threshold, registration is voluntary. In 2025-2026 the authorities made notable adjustments to the VAT rules, including in construction, where the special regime was replaced by application of the standard rate. This is one more reason to check the current wording of the law before launching a project.

Property tax and real-estate transactions

For any foreign investor considering a seaside apartment or a flat in Cairo, property tax is a practical matter. Egypt's annual property tax is calculated not on the market price of the property but on its net annual rental value. The rate is 10% of that assessed amount, and before the calculation, standard maintenance costs are deducted from the gross rental value (around 30% for housing and 32% for commercial properties).

There is also a tax-free threshold: the 2026 reform raised the exemption bar, so a significant share of mid-segment housing effectively falls outside the annual tax. In other words, for a typical apartment used personally, the annual burden is usually small - far from European figures.

On the sale of real estate a separate levy applies: capital gains tax on property transactions is about 2.5% and is charged on the transaction amount (that is, on the sale price rather than the net profit). In essence it is a transaction payment on the transfer of title. We cover the details of purchase, registration and related costs in our article on real estate in Egypt.

Capital gains, dividends and withholding tax

Beyond the basic taxes, Egypt has a set of levies on investment income. Withholding tax on dividends for non-residents depends on whether the shares are traded on the Egyptian Exchange (EGX). For dividends on exchange-listed shares the rate is lower - around 5%. For shares off the exchange the withholding is higher - about 10%. A similar logic applies to residents.

Capital gains on different assets are taxed under separate rules. For real-estate transactions, as we noted, a simplified levy of about 2.5% of the transaction amount applies. Income from securities and shareholdings has its own regimes, which are revised periodically. This is an area where generalisations are dangerous: the rate depends heavily on the type of asset, the investor's status and the existence of a tax treaty between Egypt and your country of primary residence.

Egypt has a network of double taxation treaties. For a foreign investor this means that, with the right structure, the same income should not be taxed twice - but such treaties must be applied carefully and on the basis of the specific texts, not general expectations.

Egyptian tax residency: the 183-day rule

This is perhaps the most important section for an investor. Egyptian tax residency is determined not by a passport but by a person's actual connection to the country. The basic criterion is time: if you spend more than 183 days in Egypt (continuously or in aggregate) over 12 months, you are considered a tax resident.

But days are not the only criterion. A person may also be recognised as a resident if they keep a permanent home in Egypt, hold their main employment there, or have concentrated their centre of economic interests in the country. This is the so-called centre-of-vital-interests test, familiar from many jurisdictions. In other words, the formal counting of days is complemented by an assessment of the real connection.

What does this change in practice? A tax resident of Egypt is generally taxed more broadly than a non-resident, for whom mainly Egyptian-source income falls under Egyptian rules. So when planning a property purchase or the launch of a business, it is important to understand in advance in which country you will remain a tax resident - and not to create residency where you did not intend to.

Egyptian citizenship does not equal tax residency

One of the most persistent myths goes like this: you got a passport, so now you owe tax there on all your worldwide income. This does not apply to Egypt. Egyptian citizenship does not equal tax residency. A passport in itself creates no tax obligations in the country if you do not actually live or carry out activity there.

The logic is the same as we described above: taxes in Egypt are tied to residency, and residency to days spent and the centre of interests. You can obtain a second passport through investment, continue to live and work in another country, and remain a tax resident there. In this configuration Egyptian citizenship works as a mobility tool and a fallback option, not as a tax trap.

This fundamentally sets Egypt apart from countries that tax on the basis of citizenship regardless of place of residence (the best-known example being the United States). For a foreign investor who values flexibility, this model is rather an advantage. For more on the programme itself, see the guide to Egyptian citizenship by investment.

What an investor from Russia and the CIS should keep in mind

For Russians and residents of the CIS, Egypt has long been familiar as a destination for holidays and buying a seaside home. But investment decisions call for a different level of care than buying a holiday package. The first thing to remember: your tax residency at home does not disappear on its own. If you remain a tax resident of your country, your worldwide income is still governed by its rules, while Egypt taxes mainly what is connected to it.

Russia permits a second citizenship - its existence must be reported to the Ministry of Internal Affairs in the prescribed manner. This is a procedural point best not ignored. As for money, the key word here is transparency. Egyptian banks and authorities check the source of funds, and any investment must be made, within the law and compliance, without any attempt to circumvent sanctions or currency restrictions.

The sensible sequence is simple: first sort out your own tax residency and reporting at home, then plan the structure of your investment in Egypt, and only then do the deal. That way you avoid double taxation where it can be avoided and do not create unplanned obligations.

Taxes when starting a business in Egypt

If your goal is not passive real estate but an active business, the tax picture broadens. The company pays corporate tax of around 22.5% on profit, keeps its accounts under Egyptian rules, registers for VAT once the turnover threshold is reached, and operates within the electronic invoicing system. Dividends paid to shareholders may be subject to withholding tax at the rates described above.

Egypt positions itself as a gateway to Africa: the country is a member of the African Continental Free Trade Area (AfCFTA), while the Suez Canal and its associated economic zone create logistical and customs advantages for manufacturing and re-export. Special regimes and incentives may apply to certain projects and zones - these are worth studying in detail for the specific industry.

An investment in a business can also serve as one route to Egyptian citizenship by investment. Exactly how to structure the company, what thresholds and conditions apply and how this fits together with taxes, we cover in our article on business in Egypt.

Residence permit, residence and tax implications

Between a tourist trip and a full relocation there is an intermediate scenario - a residence permit. A residence permit in Egypt can be obtained, in particular, through the purchase of real estate or an investment, and the timelines and thresholds here differ from the conditions for citizenship. A residence permit in itself is the right to be present in the country, not an automatic tax status.

But it is precisely through residence that a residence permit is linked to taxes. If, holding a residence permit, you start spending more than 183 days a year in Egypt or move your centre of vital interests there, you risk becoming a tax resident with all that follows. So for those who want the status but wish to keep their tax ties to another country, it is important to keep track of the actual time spent in the country.

This is a typical fork in the road: either you use the status as a tool of access and mobility, or you actually relocate and take on local residency deliberately. Both options work - the point is to choose consciously. We describe the details of the statuses in our guide to the residence permit in Egypt.

Common mistakes and misconceptions about taxes in Egypt

Let us gather the typical misconceptions that cost investors dearly. The first is the belief that a second passport automatically makes you a tax resident of Egypt. We have already covered this: it is not so - status is determined by residence and the centre of interests, not by citizenship.

The second is trying to rely on outdated figures. Egypt is actively reforming its taxes: the income tax bracket thresholds, the VAT rules and the real-estate exemption limits all change. A rate that was current a couple of years ago may look different today. Any specific values - including those given here as a reference - should be verified at the time of the transaction.

The third is underestimating the question of the source of funds and double taxation. An investor sometimes thinks only about the Egyptian side and forgets about their obligations back home. The correct sequence is to look at both jurisdictions at once, relying on a double taxation treaty where one applies. And the fourth is resolving complex structures from articles on the internet instead of a personal consultation with a tax specialist for the specific situation.

Taxes, passport and investment: how to tie it together

Let us draw the line. For a foreign investor, Egypt's tax system is rather comfortable: moderate rates, taxes tied to actual residency rather than to a passport, and no taxation based on citizenship. This makes an Egyptian second passport a convenient tool that does not drag automatic tax obligations behind it as long as you do not live in the country.

But taxes are only one facet of the decision. Behind them stand your goals: a fallback option, access to the E-2 investor visa in the US (a reminder - this is a visa, not a passport or a green card), a business gateway to African markets, seaside property or mobility for the family. For all of this to come together without unpleasant tax surprises, the structure is best thought through as a whole - from residency to the method of investment.

If you are considering Egyptian citizenship by investment, it makes sense to build the tax logic into the plan from the start: where you remain a resident, which investment route you choose and how this will affect your reporting both at home and in Egypt. Then the passport becomes a working asset rather than a source of questions from the tax office.

The essentials at a glance: taxes in Egypt without illusions

If you strip away the details and keep the essence, taxes in Egypt come down to a few points. Personal income tax is progressive, approximately up to 27.5%, with a tax-free minimum. Corporate tax is around 22.5% on company profit. VAT is a standard 14%, with reduced and zero categories. Property tax is calculated on rental value and for typical housing is usually small, while on a sale a levy of about 2.5% of the transaction amount applies.

The main thing that sets Egypt apart from many countries: taxes are tied to tax residency, which is determined by residence (the 183-day rule) and the centre of vital interests, not by citizenship. A passport in itself creates no taxes in Egypt. This is a sensible and predictable model for an international investor.

This article is an overview for general understanding, not individual tax advice. Egyptian tax law changes and your personal situation is unique, so before any transaction your decisions should be checked against the current law and with a specialist in the field. Contact us, to calmly work through your configuration of residency, investment and a second passport - and build a plan without unnecessary risks.

Expert commentary from BRIDGES GLOBAL

Over to our Egypt programme specialist - on what investors pay the least attention to, yet what ultimately decides everything.

See the epigraph below - the expert commentary.