Egypt top income tax rate: 27.5%. Corporate tax: 22.5%. VAT: 14%. Egypt is the Arab world’s largest economy and attracts expats seeking business opportunities in the MENA region. The country offers competitive corporate tax rates and has streamlined business registration processes for foreign investors. Cairo and Alexandria remain major commercial and expatriate hubs.
Sources: OECD Tax Database 2024; Egypt Ministry of Finance; Egypt Tax Authority; official government sources.
Key Tax Data at a Glance
| Tax Type | Rate | Notes | Source | Year |
|---|---|---|---|---|
| Income Tax — top rate | 27.5% | Above EGP 60,000 annually | OECD | 2024 |
| Income Tax — lowest rate | 0% | EGP 0–15,000 (exempt threshold) | OECD | 2024 |
| Corporate Tax | 22.5% | Standard rate; incentive zones may have reduced rates | OECD | 2024 |
| VAT (standard rate) | 14% | Zero-rated: exports, food staples, pharma; 5% on some items | OECD | 2024 |
| Capital Gains Tax | 10% (stock exchange) | 22.5% on other capital gains; conditions apply | OECD | 2024 |
| Social Security (employee) | 11% (capped) | Mandatory for employed; employer contributes additional percentage | OECD | 2024 |
| Digital Nomad Visa | No | Standard residency or work permit required | Official | 2024 |
| Territorial Taxation | No | Residents taxed on worldwide income; non-residents on Egypt-sourced income only | OECD | 2024 |
Income Tax Brackets
Egypt operates a progressive income tax system with a significant exemption threshold. The first EGP 15,000 of annual income is entirely tax-exempt. Residents are taxed on worldwide income, while non-residents pay tax only on Egypt-sourced income. Deductions include social security contributions, professional expenses, and certain allowances. Egypt has bilateral tax treaties with select countries to mitigate double taxation.
| Annual Income (EGP) | Tax Rate |
|---|---|
| 0–15,000 | 0% |
| 15,001–30,000 | 10% |
| 30,001–45,000 | 15% |
| 45,001–60,000 | 20% |
| Above 60,000 | 27.5% |
Corporate Tax
Egypt’s standard corporate tax rate is 22.5%, one of the lowest in the Middle East and North Africa region. Economic zones and special industrial areas may benefit from further reductions or incentive periods. Small enterprises may qualify for simplified taxation regimes. Dividend distributions are subject to withholding tax. Companies can deduct business expenses, depreciation, and interest.
VAT & Consumption Taxes
VAT is charged at a standard rate of 14% on most goods and services. Zero-rated supplies include exports, essential food items, and pharmaceuticals. A reduced rate of 5% applies to certain goods including some food products and services. The VAT registration threshold is EGP 500,000 annual turnover, though businesses can voluntarily register below this level.
Capital Gains & Investment Income
Capital gains on stock exchange transactions are taxed at a preferential 10% rate. Capital gains on other assets are taxed at the standard income tax rate of 22.5% (or up to 27.5% for high earners). Dividend income from Egyptian companies is fully taxable. Interest income is included in taxable income. Certain government securities may offer favorable treatment.
Social Security
Employees contribute 11% to the social security system, with employer contributions varying by sector. The employee contribution is capped at a maximum amount. The system covers retirement, disability, unemployment, and healthcare. Expats employed in Egypt must participate in the social security system. Self-employed professionals can enroll in the relevant schemes.
Frequently Asked Questions
How much tax do expats pay in Egypt?
Non-residents pay income tax only on Egypt-sourced income at progressive rates from 0–27.5%. Residents are taxed on worldwide income. Expats earning below EGP 15,000 annually (approximately USD 500) pay no income tax. Higher earners fall into progressive brackets up to 27.5%. The significant exemption threshold makes Egypt attractive for modest-income expats.
Does Egypt tax foreign income?
Egypt taxes worldwide income for residents but only Egypt-sourced income for non-residents. Determining tax residency is crucial for expats. Egypt maintains bilateral tax treaties with various countries to prevent double taxation. Proper structuring of income sources and residency status is important for tax planning.
Is Egypt a tax haven?
Egypt is not classified as a tax haven. However, it offers legitimate tax incentives for investment in economic zones, zero taxation on income below EGP 15,000, and competitive corporate rates at 22.5%. These features, combined with its position as a major regional economy, make it attractive for legitimate business investment and entrepreneurship.
What taxes do freelancers pay in Egypt?
Self-employed professionals are taxed at progressive income tax rates (0–27.5%) on net professional income. Freelancers below EGP 15,000 annual income pay no tax. Registration with tax authorities is required. Self-employed individuals contribute to social security systems (rates vary by profession). VAT applies if turnover exceeds EGP 500,000.
How does Egypt compare to neighboring countries for taxes?
Egypt’s 22.5% corporate rate is lower than South Africa’s 27%, Kenya’s 30%, but higher than Tunisia’s 15% sector incentive. Personal income top rate of 27.5% is the lowest among the major African nations compared. Egypt’s zero tax band on the first EGP 15,000 is comparable to Tunisia and makes it competitive for modest-income earners and digital entrepreneurs.
Explore Further
Related Tax Guides
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- Tax Rates in Morocco
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- Tax Rates in Kenya
- Tax Rates in South Africa
Cost of Living
Sources: OECD Tax Database 2024; Egypt Ministry of Finance; Egypt Tax Authority. Rates verified April 2026. Not financial advice — consult a qualified tax professional for individual situations.