Doing business in Egypt

Egyptian law is codified civil law with Arabic as the official legal language. Companies are formed under Companies Law No. 159 of 1981 or the Investment Law, through GAFI's investor service centres, and acquire legal personality on entry in the Commercial Register. The Egyptian Tax Authority administers income tax and VAT, the Central Bank of Egypt regulates banking and foreign exchange, and free zones and the Suez Canal Economic Zone offer separate customs and tax regimes. Official English texts are often unofficial translations, so the Arabic original governs.

Key facts

Corporate income tax

22.5% (oil exploration 40.55%)

VAT

14% standard rate

Foreign investment

National treatment under the Investment Law

Incorporation

Through GAFI; decision within one business day

Profit repatriation

Guaranteed by the Investment Law

Foreign staff

Up to 10% of workforce (20% if no qualified Egyptians)

New York Convention

Party since 1959

The Investment Law gives foreign investors national treatment and sets four investment frameworks, from ordinary 'internal' investment to free zones. Companies are incorporated through GAFI, which must decide complete applications within one business day.

Key facts

• Foreign investors are entitled to the same treatment as Egyptian investors under the Investment Law, though sector laws can still restrict ownership.

• Choose the framework early: internal investment, investment zones, technological zones or free zones carry different customs and tax treatment.

• Incorporation runs electronically through GAFI for both Investment Law and 1981 companies law companies.

• GAFI must decide within one business day, and the company exists from entry in the Commercial Register.

Who handles this in EgyptSetting up and running a companyLicences, permits and regulators

Corporate income tax is 22.5 percent and VAT 14 percent. Payments abroad attract withholding tax, and transfer pricing documentation applies above set thresholds. Tax figures here come from a secondary source because the tax authority site could not be reached.

Key facts

• Corporate income tax is 22.5 percent, with higher rates for oil exploration and certain state bodies.

• VAT is 14 percent under Law No. 67 of 2016 as amended in 2025.

• Withholding on payments to non-residents is 10 or 5 percent on dividends and 20 percent on royalties, services and non-treaty interest.

• The corporate return is due four months after year end, and transfer pricing filings apply to larger related-party flows.

Who handles this in EgyptTax and structuringAccounting and annual filings

Employers and employees pay social insurance on a capped insurable salary, and investment projects may hire foreign staff only up to a set share of the workforce. Labour law terms and the minimum wage were not confirmed.

Key facts

• Social insurance costs the employer 18.75 percent and the employee 11 percent of the insurable salary.

• From 1 January 2026 the insurable salary runs from EGP 2,700 to EGP 16,700.

• Foreign staff are capped at 10 percent of an investment project's workforce, or 20 percent where qualified Egyptians are not available.

• Foreign investors can obtain residence for the life of their project.

Who handles this in EgyptEmployment, payroll and immigration

Incentives are tied to location, sector and foreign-currency financing, and strategic projects can seek a single Golden License. Free zones sit outside the ordinary tax laws but pay fees on goods or revenue.

Key facts

• The special incentive deducts 50 or 30 percent of investment costs from taxable profits, but only for companies incorporated by 28 October 2026.

• Industrial projects mainly financed in foreign currency can receive back 35 to 55 percent of income tax paid.

• A Golden License gives one approval covering set-up and operation for qualifying strategic projects.

• Free zone projects pay 1 to 2 percent fees instead of ordinary taxes; model these against the corporate tax alternative.

• Investors may obtain the real property needed for their activity, subject to rules for regulated areas.

Who handles this in EgyptLicences, permits and regulatorsTax and structuring

The Investment Law guarantees the right to transfer profits abroad in a convertible currency. Central Bank of Egypt rules on foreign exchange, account opening and AML onboarding could not be confirmed for this guide.

Key facts

• Profits may be transferred abroad, and foreign investment transfers are to be freely transferable in a convertible currency.

• Foreign employees of investment projects may send their earnings abroad.

Who handles this in EgyptPayments and currencyBanking and capital

Customs duties vary by product category, while free zones and the Suez Canal Economic Zone offer duty and VAT relief. Import registration and trade agreements were not confirmed.

Key facts

• Customs duties generally range from 0 to 60 percent of CIF value depending on product category.

• Goods moving to or from free zone projects are outside customs duties and VAT.

• Exports from the Suez Canal Economic Zone are zero-rated for VAT.

Who handles this in EgyptCustoms, trade and export controls

This topic was written by AI from general knowledge and is being checked against official sources. Confirm anything you plan to rely on with a qualified local professional.

6 statements on rates, thresholds or deadlines are held back until they are checked against an official source.

Who handles this in EgyptData protection and cyber

Egypt is a member of the PCT and the Madrid System, so international patent and trade mark filings can reach Egypt. National registration rules and the IP office were not confirmed.

Key facts

• International patent applications can enter Egypt through the PCT.

• International trade mark registrations can designate Egypt under the Madrid Protocol.

Who handles this in EgyptTrade marks, patents and brands

Only the tax treatment of share disposals could be confirmed. Merger control, takeover rules and insolvency need to be checked from official sources.

Key facts

• A non-resident selling unlisted Egyptian shares is taxed at 22.5 percent on the gain, while listed share gains are exempt for non-residents.

Who handles this in EgyptBuying, selling and investingTax and structuring

The Investment Law protects projects against nationalisation and administrative seizure. Anti-bribery, AML and sanctions rules could not be confirmed for this guide.

Key facts

• Projects may not be nationalised, and expropriation requires public utility and prior compensation.

• Project assets may be seized or frozen only by judicial ruling, except for tax and social insurance debts.

Who handles this in EgyptAnti-bribery, sanctions and compliance

Egypt has been party to the New York Convention since 1959. The Investment Law adds amicable settlement, a Grievance Committee and a ministerial committee for investor-state disputes.

Key facts

• Foreign arbitral awards are enforceable under the New York Convention.

• Investor-government disputes can be negotiated without giving up the right to litigate.

• Challenges to GAFI decisions go to a Grievance Committee within 15 business days.

• Claims against the state can go to the Ministerial Committee for Investment Disputes Resolution.

Who handles this in EgyptDisputes and arbitrationLicences, permits and regulators