Egyptian Income Tax: Rates and Residency Rules for Departure
Egypt's income tax (Ley 91 of 2005 — Qanun al-Dareebt ala al-Dakhl, as amended) applies to residents on worldwide income and non-residents on Egyptian-source income. 2026 individual income tax rates: 0% (up to EGP 40,000), 10% (EGP 40,001–55,000), 15% (EGP 55,001–70,000), 20% (EGP 70,001–200,000), 22.5% (EGP 200,001–400,000), 25% (EGP 400,001–1,200,000), 27.5% (above EGP 1,200,000). Note: these brackets have been revised periodically to account for EGP inflation — verify current thresholds at eta.gov.eg. Personal allowance: EGP 20,000 per year (2026 — verify). Employment income: withheld at source by employer (Form 4 quarterly returns). Annual personal income tax return: due April 1 for calendar-year taxpayers. Tax residency: Egyptian tax residency applies if: (1) Egyptian domicile or permanent residence; (2) present in Egypt for 183+ days in the tax year; or (3) the person carries out their main professional activity in Egypt. Loss of residency: physical departure combined with cessation of Egyptian economic activity ends Egyptian tax residency. ETA does not require formal residency deregistration for all taxpayers — but filing a final return (including a cover note indicating permanent departure and change of address) is advisable. Non-residents: 20% flat withholding on Egyptian-source income (dividends, interest, royalties). Employment income from Egyptian employer: progressive rates apply to the Egyptian-source portion.
NSSF Social Insurance and Pension Rights on Departure
Egypt's social insurance system is administered by NSSF (National Social Insurance Authority — formerly NSIO — under Law 148 of 2019 — the Unified Social Insurance and Pensions Law). Employee contributions: 11% of insured wage (pensionable + variable — up to wage ceiling). Employer: 18.75%. Unified Social Insurance Law (148/2019): represents a significant reform of Egypt's previously fragmented social insurance system. Under the new law, all workers (public, private, informal) are brought under a unified scheme. Pension eligibility: requires 10–15 years of qualifying contributions for early reduced pension; full pension at age 60 (men) or 55 (women) with 20+ years contributions. Lump-sum refund for departing workers: Egyptian social insurance law has historically not provided lump-sum withdrawal for departing workers in the same way as Ecuador or Taiwan. Under Law 148/2019, departing foreign nationals may be entitled to a dafat al-murtatbat (contribution return) under specific conditions — however, this is subject to administrative implementation that varies by NSSF regional office. Practical advice: if you are a foreign national who has contributed to Egyptian NSSF, contact the NSSF office (التأمينات الاجتماعية) in your last region of employment to inquire about your contribution balance and any applicable refund mechanism. Bilateral social security: Egypt has bilateral social security agreements with several countries — check with NSSF for your destination country.
EGP Currency Devaluation and International Transfers
The Egyptian pound (EGP — Gineih Masri) has experienced dramatic depreciation: from approximately EGP 8/USD in 2016 to EGP 30–50/USD range by 2024–2025 following multiple IMF-mandated devaluations. Foreign exchange system: Egypt operates a managed float with the CBE (Central Bank of Egypt — cbe.org.eg) setting the official rate. As of 2024, Egypt has moved to a more flexible exchange rate regime, reducing (but not eliminating) the gap between official and parallel market rates. International transfers: CBE regulations require all FX transactions to go through licensed Egyptian banks or foreign exchange bureaus. Requirements for international wire transfers: (1) Proof of income source (tax receipts, employment contract, rental income documents). (2) ETA tax clearance for large amounts — informal but banks may request confirmation of no outstanding ETA liabilities. (3) CBE Form for transfers above USD 100,000: submit to CBE foreign operations unit. (4) Bank processing: 2–5 working days for standard SWIFT transfers. Currency conversion: convert EGP to USD/EUR/GBP at your Egyptian bank's buying rate. The spread between buy and sell rates is typically 2–5% for consumer amounts. Wise from Egypt: Wise has limited functionality for EGP transfers due to CBE regulations — verify current Wise Egypt availability. For most departing expats: Egyptian bank wire to your destination account is the primary mechanism. Retaining a small EGP account in Egypt for ongoing obligations (property tax, rental income receipt) is advisable.
Egyptian Real Estate: Non-Resident Ownership and Capital Gains
Egypt has a significant market of foreign-owned real estate — particularly in New Cairo, Sheikh Zayed, the North Coast, and Red Sea resorts (Hurghada, Sharm el-Sheikh). Foreign ownership of Egyptian property: permitted for foreigners, subject to: (1) Maximum 2 properties per foreigner; (2) Value-based restrictions may apply in certain areas; (3) Resale to foreigners requires CBE approval if proceeds remitted abroad. Capital gains on Egyptian real estate: Egypt introduced real estate capital gains tax under Ley 91/2005 amendments. Rate: 2.5% on the total sale proceeds (final flat tax — applied on gross proceeds, not on the net gain). This is sometimes called the Capital Gains Tax on Real Estate (ضريبة على أرباح التصرف في العقارات) — it is effectively a transfer levy rather than a gain-based tax. Property registration tax: separate transfer fees (ranging approximately 2.5–5% depending on governorate and property type) at the time of registration. Annual property tax: Ley 196/2008 — property tax on market rental value at 10% of annual estimated rental income (standard deduction for maintenance of 30% for buildings). Practical issue: a significant portion of Egyptian real estate transactions historically occurred informally — if your property lacks formal registration (Tasjeel Rasmi), regularisation before sale is strongly advised. Rental income as non-resident: declare to ETA — 20% non-resident withholding rate applies. Annual ETA return required for rental income.