The Expat’s Guide to Taxes in Egypt: What You Need to Know in 2025
Are you an expat living in Egypt or planning to relocate here for work or retirement? Understanding the local tax landscape is crucial if you want to stay compliant and avoid costly surprises. Egypt offers a vibrant lifestyle, a lower cost of living, and rich cultural experiences—but when it comes to taxes, many foreign residents find themselves overwhelmed or under-informed.
As a tax consultant who works closely with expats in Egypt, I often receive questions like:
- Do I have to pay taxes in Egypt if I’m paid abroad?
- What if I work remotely?
- Are there any tax treaties or exemptions I can use?
In this in-depth article, I’ll cover everything you need to know about expat taxation in Egypt in 2025—whether you’re an employee, self-employed, freelancer, or retiree. We’ll examine applicable taxes, recent regulatory changes, double taxation agreements, common pitfalls, and practical tips. Let’s dive in.
What Are the Taxes Applicable to Expats in Egypt?
The most common misconception among expats in Egypt is the belief that they are exempt from local taxes just because they earn money abroad. Unfortunately, it’s not that simple.
1. Personal Income Tax (PIT)
If you perform any work physically located in Egypt—even if you’re paid by a foreign company—you are liable to pay Egyptian personal income tax on that income. The current progressive tax rates for residents are:
| Annual Income (EGP) | Tax Rate |
|---|---|
| Up to 21,000 | Exempt |
| 21,001 – 30,000 | 2.5% |
| 30,001 – 45,000 | 10% |
| 45,001 – 200,000 | 15% |
| 200,001 – 400,000 | 20% |
| 400,001 – 1,200,000 | 22.5% |
| Over 1,200,000 | 25% |
If you’re not a tax resident, you are still subject to a flat 10% withholding tax on Egyptian-sourced income.
Tip: Always track your days in Egypt. Crossing 183 days may trigger full tax residency—even if you’re only working part-time or remotely.
Understanding Tax Residency in Egypt
You are considered a tax resident if you:
- Spend more than 183 days in Egypt during a calendar year
- Have a permanent home or center of vital interests in Egypt
Tax residents must report worldwide income.
Are Expats Subject to Social Insurance in Egypt?
- Employees with Egyptian employers contribute to social insurance (11% employee, 18.75% employer)
- Self-employed or foreign-paid expats are generally exempt
Taxation for Freelancers, Remote Workers & Digital Nomads
If you live in Egypt over 183 days, you’re a tax resident—even if paid by a foreign company. Egypt does not tax foreign pensions (yet), but online income is under increasing scrutiny.
Recent Changes in Tax Regulations Expats Should Know
- Higher brackets for income above EGP 1.2 million
- Digital economy rules targeting freelancers, YouTubers, KDP authors
- Mandatory e-filing by March 31 via the ETA portal
Double Taxation Agreements (DTAs)
Egypt has tax treaties with over 50 countries, including the UK, USA, Canada, Germany, and France. These help prevent double taxation through:
- Tax credits
- Reduced withholding rates
- Clarification on business and pension income
Tip for UK Expats: UK government pensions are typically only taxable in the UK.
What Expats Wish They Had Known
- Foreign income is taxable if you’re a resident
- Tracking days is essential
- Late filing penalties are steep
- Large bank transfers may trigger reviews
Pros and Cons of Egypt’s Tax System for Expats
| Pros | Cons |
|---|---|
| Lower income tax than Western countries | Residency rules can be confusing |
| Double taxation treaties help avoid overpayment | Freelancers face more scrutiny |
| No inheritance or wealth taxes | No automatic social benefit access |
Common Questions
Q: Do I need to file if I earn only abroad?
A: Yes, if you’re a resident—even if it’s a nil return.
Q: Can I offset foreign tax paid?
A: Yes, with a DTA and the right documentation.
Q: Is overseas rental income taxable?
A: Yes, if resident, but DTAs and deductions may help.
Final Thoughts
Here are three golden rules for expats in Egypt:
- Track your days. Residency triggers obligations.
- Declare global income if resident—even digital income.
- Seek professional advice for complex cases.
Need Help? Contact a Tax Expert
I offer 1:1 consultations for expats in Egypt covering:
- Tax residency and planning
- DTA optimization
- Filing and compliance support
Book a consultation today and stay financially compliant in Egypt.
