Financial Planning in Egypt: A Guide for Expats and International Investors

Overview

Egypt is the most populous Arab country and one of Africa's largest economies. For internationally mobile HNW individuals, it is rarely a primary tax-planning destination in the conventional sense — the tax system is not particularly competitive by regional standards, currency controls are material, and the banking environment has been volatile. However, Egypt has a significant diaspora investor base, a growing real estate market in designated zones, and a large, dynamic domestic economy that attracts business owners and entrepreneurs with regional ambitions.

This guide sets out the key financial planning considerations for expats and international investors engaging with Egypt. It is not a substitute for professional legal or tax advice. Rules are subject to change, particularly given Egypt's ongoing economic restructuring under IMF support programmes.

Tax Residency Rules

An individual is considered tax resident in Egypt if they are habitually resident in Egypt, if Egypt is their centre of business or professional activity, or if they have resided in Egypt for more than 183 days in a tax year (the Egyptian fiscal year runs January to December).

Egyptian residents are subject to tax on worldwide income if they are Egyptian nationals, and on Egypt-sourced income if they are foreign nationals. In practice, this distinction means that a non-Egyptian expat working in Egypt is taxed on their Egyptian-source employment and business income but not automatically on foreign investment income retained offshore. However, remitted foreign income may come under scrutiny depending on how it enters the Egyptian financial system, and the boundaries of taxation are not always consistently applied in practice.

Income Tax

Egypt applies a progressive income tax scale. For the 2025–2026 tax year, the bands are approximately: 0% up to EGP 40,000; 10% on EGP 40,001–55,000; 15% on EGP 55,001–70,000; 20% on EGP 70,001–200,000; 22.5% on EGP 200,001–400,000; and 25% above EGP 400,000. Given the Egyptian pound's devaluation trajectory, these thresholds translate to relatively modest sterling equivalents at current rates.

Employees are subject to payroll withholding; self-employed and business owners file annual returns. A flat 10% tax rate applies to certain passive income categories including dividends from listed Egyptian companies. Interest on Egyptian government securities (T-bills, bonds) is also subject to withholding at 20% for non-residents, though treaty provisions can reduce this.

Capital Gains Tax

Capital gains from the sale of Egyptian listed securities by resident individuals are subject to a 10% withholding tax (this was reinstated after a period of exemption). Gains from unlisted shares and from real property disposals are subject to income tax at the standard progressive rates, though valuation practices and enforcement vary.

For foreign investors disposing of Egyptian property in the designated foreign-ownership zones (see below), the gain is subject to Egyptian capital gains rules. The interaction with UK CGT for UK-domiciled individuals selling Egyptian property while UK resident requires careful analysis under both domestic UK rules and the UK–Egypt DTA.

There is no Egyptian wealth tax, though municipal and notarial fees apply to property transactions.

Inheritance and Succession

Egypt applies Islamic succession law (based on Sharia) to Muslims. Non-Muslims are generally subject to the succession law of their home country for moveable property. Real property (immoveable assets) in Egypt is typically governed by Egyptian law regardless of the owner's nationality or religion, which can create complications for estate planning where Egyptian property is held alongside a UK estate.

UK IHT continues to apply to worldwide assets for individuals within its scope regardless of where they reside. Since 6 April 2025 that scope is residence-based rather than domicile-based: broadly, a "long-term UK resident" (UK-resident for at least 10 of the previous 20 tax years) is liable to UK IHT on worldwide assets. Solicitors experienced in both English and Egyptian succession law should be engaged where Egyptian real estate forms part of a larger estate.

Residency Visa for HNW Individuals

Egypt introduced a residential investment programme that allows foreign nationals to obtain a one to five-year renewable residence permit in exchange for property investment at specified thresholds. As of 2026, purchasing property with a value of USD 100,000 or above (payable in foreign currency) in a registered zone qualifies the buyer and immediate family for a temporary residence permit of three to five years. A higher threshold of USD 500,000 is linked to a longer-term permanent residence permit under the enhanced scheme.

These thresholds and conditions are subject to revision as Egypt refines its investor attraction strategy. Buyers should obtain current details from the General Authority for Investment and Free Zones (GAFI) or through a registered Egyptian lawyer before proceeding.

Banking Access

Egypt's banking sector is dominated by state-owned institutions (National Bank of Egypt, Banque Misr, Banque du Caire) alongside a growing private sector (Commercial International Bank, QNB Al Ahly, HSBC Egypt). The sector has been significantly affected by successive EGP devaluations — the pound lost more than 60% of its value against the dollar between 2022 and 2024 — which eroded the real value of EGP-denominated deposits for those holding sterling or dollar wealth.

Foreign nationals can open foreign currency accounts (USD, EUR, GBP) in Egypt, which provides some protection against EGP volatility for income and capital held in hard currency. Transfers out of Egypt in foreign currency are permitted for properly documented inward investments, though the Central Bank of Egypt has imposed various controls at different points during periods of foreign currency scarcity.

Offshore banking remains the preferred approach for HNW individuals with Egyptian connections: holding investment portfolios and pension assets outside Egypt and remitting only what is needed for local living expenses limits exposure to EGP volatility and capital control risk.

Pension Considerations

Egypt operates a national social insurance scheme (NSIS), but this is primarily relevant for Egyptian employees and their employers. Foreign nationals working in Egypt on short to medium-term assignments are frequently exempt from NSIS obligations under bilateral agreements or specific employment structures.

For UK expats, UK pension entitlements should generally remain in UK-registered vehicles (SIPP, workplace pension). No QROPS regime exists in Egypt. UK State Pension is payable to recipients in Egypt, but as Egypt does not have a social security reciprocal agreement with the UK, State Pension uprating may not apply — the pension could be frozen at the level in payment at the date of emigration. This is a material long-term consideration for those planning to retire in Egypt permanently.

UK private pension drawdown paid to Egyptian residents is subject to UK income tax withholding under PAYE unless a NT (No Tax) code is obtained via HMRC, using form DT Individual to claim treaty relief. Advice from a UK tax specialist should be obtained before commencing drawdown from an Egyptian address.

Property Ownership

Foreign ownership of Egyptian real estate is permitted in designated zones and in specific project developments. The key legal frameworks are:

• Registered development zones: Most new resort and master-planned communities (New Administrative Capital, Ain Sokhna, the North Coast, New Cairo, and many Red Sea resort areas) allow foreign ownership of completed units. Title is typically registered in the form of a 99-year usufruct or a full title deed (tabu) in designated freehold zones.
• Agricultural land: Foreigners cannot own agricultural land.
• Sinai Peninsula: Non-Egyptians face restrictions on property ownership in Sinai, which is treated as a strategic border zone.
• Number of properties: Foreign nationals are generally permitted to own two properties in Egypt, extendable by petition.

Transactions should be conducted through a licensed Egyptian notary, and buyers should engage independent legal representation to verify title, confirm zone status, and review the sale contract before signing. Off-plan purchases carry developer risk; buyer protection mechanisms are less robust than in EU markets.

UK–Egypt Double Tax Treaty

The UK and Egypt have a Double Taxation Agreement in force. The treaty covers income from employment, business profits, dividends, interest, royalties, and capital gains on certain asset types. Key withholding rates under the treaty are: dividends at 20% (reduced from domestic rates in some cases); interest at 15%; royalties at 15%.

The treaty includes a capital gains article that generally allocates taxing rights on immoveable property to the country where the property is situated, meaning Egyptian property gains are taxed in Egypt. UK relief by way of credit is available for Egyptian tax paid on the same gain.

Given the relatively high Egyptian withholding rates under the treaty and the limitations of EGP-to-GBP conversion on repatriation, investors should model full post-tax returns carefully before committing capital to Egyptian income-generating assets.

Practical Expat Community Observations

Cairo remains the primary hub for corporate expats, with New Cairo (Fifth Settlement) and Maadi housing the majority of the international community. Hurghada and the Red Sea coast have a smaller but established community of lifestyle buyers and retirees, primarily from Germany, the UK, and Russia. Alexandria attracts fewer expat residents but has strong Egyptian diaspora investment, particularly in property.

Living costs in Egypt in EGP terms have risen sharply due to inflation, but in hard-currency terms, Egypt remains very affordable relative to Europe or the Gulf. This dynamic benefits those earning in GBP or USD but makes Egypt less attractive as an income-generating base for sterling investors.

The security situation has been stable in central Cairo and resort areas for several years, and the Egyptian government has made significant infrastructure investments (new capital, new road networks, new metro lines) that have underpinned commercial real estate demand. Investors should nonetheless remain attentive to regional geopolitical developments given Egypt's location.

How Global Investments can help

Global Investments advises HNW clients with Egyptian property interests, diaspora investment plans, or corporate relocations to Cairo. We can help you assess the currency risk of Egyptian assets within a wider international portfolio, review UK IHT exposure on Egyptian real estate, and plan pension drawdown efficiently for Egyptian residents. Our team can also introduce you to qualified Egyptian legal and tax professionals for local compliance. Contact our international planning team to discuss your specific situation.