Value-Added Tax (VAT)  is a cornerstone of Egypt’s tax system, introduced in 2016 to modernize and broaden the tax base. For foreign investors and businesses operating in Egypt, understanding VAT is crucial to ensure compliance and optimize tax planning. In simple terms, VAT is a consumption tax  levied at each stage of the supply chain where value is added – from production to final sale. Unlike the old Sales Tax system, which applied only at the retail stage, VAT allows bus

Foreign investors in Egypt must carefully plan how to exit their investment  when the time comes to maximize value and comply with local law. An exit strategy lays out the legal and financial steps for selling or closing a business, repatriating funds, and settling obligations. This is critical because Egypt’s legal and regulatory framework for foreign investment is detailed and compliance-intensive. A well-defined exit plan helps minimize risk, avoid surprises (such as back

Foreign investors in Egypt must grasp both tax planning  and tax audit  processes to comply with Egyptian law and optimize outcomes. Tax planning is a forward-looking , proactive strategy for legally minimizing taxes, while tax auditing is a retrospective  review by the Egyptian Tax Authority (ETA) to verify compliance. Each serves different objectives and involves distinct actors and rules. In Egypt’s evolving tax landscape, understanding these concepts – and how they intera

A partnership agreement in Egypt is a legally binding contract between two or more people (individuals or companies) who agree to carry on a business together and share profits and losses. Egyptian law treats partnerships (Sherkat) primarily as personal contracts rather than separate entities. For example, a general partnership  (Sherka ‘Odawiya) requires at least two active partners who share management and are jointly and severally liable  for the firm’s debts. Unlike corpo

Tax due diligence is the thorough investigation of a target company’s tax affairs before a transaction. It builds a “risk profile”  for investors by verifying all material tax facts, filings and liabilities. In practice, due diligence uncovers hidden tax liabilities or errors so they can be addressed in negotiations. As one expert explains, “tax due diligence is a thorough examination of all of the taxes that a company will be liable for” , clarifying the target’s tax structu

In Egypt, a will  ( wassīya ) is the formal legal instrument by which a person disposes of property to take effect after death. Egyptian law (Civil Code Art. 915) expressly recognizes the right to make a will, but imposes strict limits on it. Under Article 915 of the Civil Code, any will must respect the country’s inheritance system. In practice this means that a will can only dispose of at most one-third of a person’s estate – the remaining two-thirds are distributed by law

Mergers and acquisitions (M&A) in Egypt encompass the purchase, sale or combination of companies  – whether through share transfers, asset sales or statutory mergers. In practice, most Egyptian M&A deals involve transferring shares of joint-stock companies or quotas of LLCs . The Egyptian Companies Law (No. 159 of 1981)  and related regulations govern corporate mergers and share transfers, while the Capital Market Law (No. 95 of 1992)  and EGX listing rules apply when listed

Foreign and domestic investors view Egypt as a strategic hub for M&A activity, given its large economy and growth potential. The legal system is civil-law based, and M&A transactions are governed by multiple statutes. Key laws include the Companies Law No.159 of 1981  (as amended), which sets out rules for corporate reorganizations, and the Capital Markets Law No.95 of 1992 , which regulates share transactions and public offerings. Listed companies must also comply with the E

Taxpayers in Egypt must navigate a complex tax system carefully. On one hand, tax optimization  (also called tax planning or avoidance) refers to using legitimate provisions of the law to minimize taxes. On the other hand, tax evasion  involves illegal schemes to escape tax payment. Understanding the line between these two is crucial. Egyptian law explicitly punishes evasion as a criminal offense, while allowing legal planning within the rules. Foreign businesses and expats i

Tax optimization (also called tax planning  or tax avoidance) refers to legally reducing taxes by structuring transactions and taking advantage of allowances or incentives. This is distinct from tax evasion , which involves illegal actions (e.g. false accounting or hiding income) to avoid paying taxes. In other words, optimization works within  the law, whereas evasion crosses the line into fraud. Egypt’s tax laws recognize this distinction: lawful planning is encouraged, but

Egyptian law treats corporate crime as illegal conduct by companies or their officers for business purposes. In practice, corporate crimes cover a wide range of offenses – from financial fraud and embezzlement  to bribery, tax evasion, and antitrust violations – whenever these acts benefit the company. Corporate crime is closely related to white-collar crime, but the two differ in focus. Corporate crime  typically involves illegal acts by a company (or its agents) against the

Egypt applies its criminal laws equally to all people on its soil. A foreigner accused of a crime in Egypt will be prosecuted under the same Penal Code and court system as an Egyptian. In fact, “foreigners who commit crimes in Egypt are subject to the same penalties as Egyptians” . There is no special legal exemption for ordinary non-citizens (only accredited diplomats or certain international officials enjoy immunity). Under Egypt’s 1937 Penal Code, jurisdiction is primarily

Foreigners and expatriates in Egypt should understand that “personal crimes” (often called crimes against the person) encompass offenses targeting an individual’s life, body, liberty, or dignity. Egypt’s Penal Code (1937) does not explicitly use the phrase “personal crimes,” but it classifies crimes against the person  (homicide, assault, kidnapping, sexual violence, etc.) as a category with the harshest penalties. In contrast, crimes against property or the state are separa

Egypt’s real estate market offers many opportunities for investors, but it also comes with specific tax obligations. The Egyptian property tax system includes a modest annual levy (10% of a property’s assessed rental value for residential units) and a one-time transfer tax on sales (about 2.5% of the transaction value). These requirements are spelled out in Law No. 196 of 2008 (with later amendments) and are administered by the Real Estate Taxation Authority ( RETA ). In prac

Egypt’s property market has opened up steadily since the 1990s. Under Law No. 230 of 1996 , non-Egyptian individuals and companies may own real estate—albeit with strict limits and approvals. This legal framework was part of Egypt’s cautious shift towards foreign investment. Today, foreign buyers can invest in homes, resorts or businesses, but must navigate caps on quantity and location. (Recent reforms – including a 2024 amendment to the Desert Land Law – have further libera

Egypt’s real estate sector is governed by a rich legal tradition. Its constitution (Art.29)  and Civil Code (Law No.131/1948) enshrine ownership rights – for example, the Civil Code grants each owner the “sole right to use and dispose of his property” and requires fair compensation for any expropriation. Over the decades, Egypt has enacted numerous laws to regulate land use, development, and investment. Key statutes include the Land Registration Law (No.114/1946, amended) , t

Registering real estate in Egypt is a crucial step to secure legal ownership and protect your investment. Egypt’s property laws require that any transfer, division, mortgage or other changes  to real estate rights be officially recorded with the government. The primary legal framework includes the Real Estate Registration Law (Law No. 114 of 1946), supplemented by the Civil Code (Law No. 131 of 1948) and recent amendments (such as Law No. 9 of 2022) that have streamlined the

Tax disputes in Egypt can arise from many routine business issues, and understanding how they are resolved is crucial for companies,...

Egypt’s corporate tax regime is a key consideration for any foreign investor. Corporate entities (including branches) are taxed under...

Egypt’s business landscape is shaped by a rich legal tradition and modern reforms. As a foreign investor considering entry into Egypt,...