Moving to Egypt: A Complete Tax Guide for US Expats

Egypt, with its rich history and dynamic modern culture, offers a captivating experience for Americans looking to live abroad. From the bustling energy of Cairo to the tranquil shores of the Red Sea, life in Egypt blends ancient heritage with contemporary living. Its affordable cost of living and growing expat communities make it an appealing destination for digital nomads, retirees, and professionals alike.

For US citizens relocating to Egypt, life isn’t just about exploring pyramids and Nile sunsets; it also comes with the responsibility of managing taxes in both countries. The IRS requires Americans abroad to file annual US tax returns, while Egypt’s own tax system applies based on residency and income earned within the country.

Fortunately, with the right tax strategies, you can significantly reduce or even eliminate your US tax liability. In this guide, we cover everything you need to know as a US expat moving to Egypt, from filing taxes to visas and essentials like healthcare.

Egypt Taxes

As a US expat living in Egypt, you may need to file an Egyptian tax return depending on your residency status and income. Tax residents are taxed on their worldwide income, while non-residents are taxed only on income earned in the country. Egypt uses a progressive tax system, and the first EGP 20,000 of income is tax-free.

Tax Residency in Egypt

Like many countries, Egypt determines tax residency based on time spent in the country or ties to it. The standard rule is 183 days in Egypt during a 12-month period.

You may also be considered a tax resident if you maintain a permanent home, primary employment, economic interests, or earn income from Egyptian sources while abroad.

• Residents: Must file by March 31 of the following year, though the authority may announce slight variations.
• Non-residents: Must file by the same deadlines if they have Egypt-sourced income that requires a return.

The Egyptian Tax Authority may occasionally grant short nationwide extensions, typically only a few days or weeks, but these are not guaranteed. To avoid penalties, taxpayers should plan to file by the official March 31 deadline unless an extension is formally announced.

Egypt Deadlines (for 2025 income, filed in 2026)

In Egypt, each taxpayer is required to file their own individual return; joint filings are not permitted. All tax returns are submitted electronically through the Egyptian Tax Authority (ETA) online portal, the official platform for income tax submissions. Deadlines depend on the taxpayer’s situation, as shown below:

Return Type	Deadline
Employees and Pensioners (individual income tax return)	March 31, 2026
Self-employed (individual business income)	March 31, 2026
Legal entities (companies with fiscal year ending Dec 31)	April 30, 2026
Final tax payment	By the same due date as the return (March 31 or April 30

Personal Income Tax Rates in Egypt

Egypt applies a progressive income tax system, with rates ranging from 0% to 27.5% depending on income level. Rates apply to both residents and non-residents.

Tax Rate	Net Income Bracket (EGP)
0%	Up to 40,000
10%	40,001 – 55,000
15%	55,001 – 70,000
20%	70,001 – 200,000
22.5%	200,001 – 400,000
25%	400,001 – 1,200,000
27.5%	Above 1,200,000

Social Security Tax

In Egypt, both employees and employers are required to contribute to the national social insurance system. Employees pay 11% of their insurable salary, while employers contribute 18.75% toward pension, disability, and death coverage. Additional contributions include 4.25% for health insurance (1% employee, 3.25% employer), 1% from employers for unemployment, and 1.5%–2% for work injuries.

Contributions apply to a minimum wage of EGP 2,000 and a maximum of EGP 12,600, with annual adjustments for inflation.

Self-employed individuals are also required to register with the national social insurance system and contribute a percentage of their declared income, typically ranging from 15% to 20% of their monthly earnings.

Capital Gains Tax

Capital gains in Egypt are taxable, with rates varying by asset type:

Type of Asset	Tax Rate
Listed shares on Egyptian Stock Exchange	10%
Unlisted Egyptian company shares	22.5%
Foreign shares held by residents	22.5%
Real estate located in Egypt	2.5% of sale value

Corporate Tax

Egypt imposes a flat corporate income tax rate of 22.5% on net taxable profits. Resident companies are taxed on their worldwide income, while non-resident companies are taxed only on income sourced in Egypt.

Certain sectors, such as oil and gas, are subject to higher rates, up to 40.55%.

Dividends and Interest Tax

In Egypt, dividends are generally taxed at 10%, or 5% for large shareholders holding at least 25% of a company. Individual interest income is taxed at regular progressive income tax rates 22.5 – 27%. Certain government bonds and deposits may be exempt.

Value-Added Tax (VAT)

Egypt levies a standard value-added tax (VAT) of 14% on most goods and services. Reduced or special rates apply to certain categories:

• 10% VAT: Professional and consultancy services, as well as certain petroleum and commercial activities
• 5% VAT: Machinery and equipment used in the production of goods or services
• 0% VAT: Exports of goods and services, along with essential sectors such as education, health care, and financial services

This system is designed to strengthen revenue collection while encouraging local production and investment, keeping essential goods and services affordable for the public.

Wealth Tax

Egypt does not impose a wealth tax on individuals.

Inheritance and Gift Tax

Egypt does not impose inheritance or gift taxes. Beneficiaries can receive inherited or gifted assets without paying any portion of their value to the government.

Property Taxes in Egypt

Egypt imposes an annual real estate tax on owned property, along with several transaction-based fees on property transfers:

• Annual real estate tax: Typically 10% of the property’s annual rental value, after a 30%–32% deduction for maintenance and expenses. Residential properties with an assessed annual rental value below EGP 24,000 are exempt.
• Property transfer tax: A flat 2.5% of the property’s sale value, payable by the seller at the time of transfer.
• Stamp duty: Applies to certain legal documents and contracts related to real estate; rates generally range from 0.1% to 0.3% depending on the document type.

While Egypt does levy an annual property tax, exemptions for lower-value properties and standardized rates help reduce the burden for most homeowners.

Deductions and Allowances in Egypt

Beyond the personal exemption of EGP 40,000, making the first portion of annual income tax-free, Egypt offers deductions and allowances that can reduce your taxable income.

Common deductions include:

• Social insurance contributions (employee share)
• Pension and retirement fund contributions up to approved limits
• Charitable donations made to approved organizations (with receipts)
• Employment-related expenses incurred in the course of work
• Ordinary business expenses necessary to generate income

When properly claimed, these allowances can help reduce your overall tax burden.

Do I Need to File US Taxes from Egypt?

Yes, the United States is one of only two countries in the world that taxes based on citizenship rather than residency. As a US citizen or Green Card holder, you must file a US tax return each year, even when all of your income comes from Egypt.

For the 2025 tax year (filed in 2026), here are the minimum income thresholds set by the IRS that determine whether you must file a US tax return. These thresholds are adjusted annually for inflation:

Filing Status	Income Threshold
Single	$15,750
Married filing separately	$31,500
Head of household	$5
Self-employed	$23,625
Self-Employed	$400 in net earnings

Even if your Egyptian income is taxed locally, the IRS still requires you to report and pay taxes on your worldwide income. Fortunately, expat tax benefits such as tax treaties, credits, and exclusions can help reduce or even eliminate the risk of double taxation.

US Deadlines (for 2025 income, filed in 2026)

As a US expat in Egypt, you automatically receive a 2-month filing extension to file your US return. Keep in mind, though, that any taxes owed are still due by April 15th to avoid interest and penalties.

Filing	Deadline
Standard US Tax Return and Taxes Owed	April 15, 2026 – (Expats: June 15, 2026 – Filing only)
Extended US Tax Return (if Form 4868 filed by June 15, 2026)	October 15, 2026
FBAR (FinCEN 114)	October 15, 2026

Avoid Double Taxation with US Expat Tax Benefits

The United States and Egypt have a tax treaty designed to help prevent double taxation and clarify which country has the right to tax certain types of income. However, unlike some countries, Egypt does not have a totalization agreement with the US, which means there is no coordination of Social Security contributions between the two systems.

In addition, the IRS provides tax breaks that can further reduce or even eliminate your US tax bill while living in Egypt.

Foreign Earned Income Exclusion (FEIE)

The IRS gives Americans abroad a powerful way to lower their US tax bill through the Foreign Earned Income Exclusion (FEIE). For the 2025 tax year, you can exclude up to $130,000 of foreign earned income from US income tax, including salary, wages, or self-employment income.

To be eligible, you must meet one of two residency tests:

• Bona Fide Residence Test — you are a resident of a foreign country for an entire tax year.
• Physical Presence Test — you spend at least 330 full days outside the US during any 12-month period.

Both the FEIE and the Foreign Housing Exclusion are claimed using IRS Form 2555.

Foreign Housing Exclusion (FHE)

In addition to the FEIE, you may also lower your taxable income through the Foreign Housing Exclusion. If you qualify for the FEIE and file Form 2555, you can exclude housing costs such as rent, utilities, and insurance.

For the 2025 tax year, you must have qualified housing expenses above $20,800. The IRS caps the exclusion at $39,000 under the standard limit, which means you can exclude up to $18,200 in housing costs. These amounts adjust annually for inflation, and higher caps may apply in high-cost cities such as Cairo or Alexandria, where living expenses are significantly above the Egypt average.

Self-employed expats claim this benefit as a deduction rather than an exclusion, though the overall effect on taxable income is the same.

Foreign Tax Credit (FTC)

The Foreign Tax Credit (FTC) allows US expats to reduce their IRS bill by applying a dollar-for-dollar credit for income taxes already paid to Egypt. You can apply the Foreign Tax Credit to both earned income (like wages) and passive income (like dividends or interest). If the Foreign Earned income Exclusion (FEIE) doesn’t cover all of your earned income, you can often apply the FTC to the remainder. The FTC is especially useful if your Egyptian taxes are higher than your US taxes, since you can carry forward any unused credits for up to ten years or back one year. You claim the FTC by filing IRS Form 1116.

US–Egypt Tax Treaty

The US–Egypt tax treaty, signed in 1980 and in force since December 31, 1981, is designed to prevent double taxation and establish which country has the right to tax specific types of income, such as salaries, pensions, dividends, interest, and business profits. In practice, the treaty can help reduce or even eliminate taxes on certain sources of income.

However, like most US tax treaties, the Savings Clause allows the IRS to continue taxing US citizens and Green Card holders as if the treaty did not exist, limiting some of the treaty’s benefits. Still, the agreement is valuable for clarifying taxing rights and for supporting the use of Foreign Tax Credits (FTC) to offset US tax liability on income already taxed in Egypt.

Child Tax Credit (CTC)

For the 2025 tax year, the Child Tax Credit (CTC) allows US taxpayers to reduce their federal tax bill by up to $2,200 per qualifying child under age 17. Up to $1,700 of this amount may be refundable through the Additional Child Tax Credit (ACTC). It’s important to note that if you claim the Foreign Earned Income Exclusion (FEIE), you cannot use that excluded income to qualify for the refundable portion of the ACTC.

US Self-Employment Tax

If you are self-employed and earn $400 or more annually, you must file a US tax return no matter where you live. Self-employed Americans owe 15.3% in US self-employment tax on their net earnings, which includes 12.4% for Social Security and 2.9% for Medicare contributions.

Because the United States and Egypt do not have a totalization agreement, Americans living in Egypt may be required to contribute to both the US and Egyptian social insurance systems. This can significantly increase the overall tax burden for self-employed expats.

While the Foreign Earned Income Exclusion (FEIE) and Foreign Tax Credit (FTC) can reduce or even eliminate US income tax liability, neither reduces self-employment tax.

FBAR and FATCA: Reporting Foreign Financial Accounts and Assets

As a US expat in Egypt, you’re not only responsible for filing your US tax return, but you may also need to report foreign financial assets if they exceed certain thresholds. These additional requirements fall under the Foreign Bank Account Report (FBAR) and the Foreign Account Tax Compliance Act (FATCA), which are designed to ensure overseas assets are disclosed to the IRS.

• FBAR (FinCEN Form 114): If the total value of your foreign bank accounts combined exceeds $10,000 at any point during the year, you must file an FBAR. This form is submitted separately from your tax return.
• FATCA (IRS Form 8938): You must also report foreign assets on Form 8938 if their value exceeds $200,000 at year-end or $300,000 at any point during the year.

Thresholds are different for Americans living in the US and those filing jointly.

Investing in Egypt as a US Expat

When it comes to investing while living in Egypt, US expats need to be especially cautious with foreign mutual funds, ETFs, and other pooled investments. The IRS generally classifies these as Passive Foreign Investment Companies (PFICs), which come with punitive tax treatment and complex reporting requirements. Each PFIC must be reported annually on Form 8621, and income is often taxed at the highest ordinary rates, sometimes with interest charges added. This treatment can quickly erode or even wipe out any investment gains, leaving US expats with little benefit.

Because of this, it’s recommended that you stick with US-domiciled mutual funds and ETFs. These remain under familiar US tax rules and don’t trigger PFIC reporting, making compliance far more straightforward and more tax-efficient on the US tax side. Of course, review local tax reporting rules as well.

Retirement Accounts (IRAs and Roth IRAs)

As a US expat in Egypt, you may still be able to contribute to traditional or Roth IRAs, up to $7,000 per year for 2025 (or $8,000 if you’re age 50 or older), provided you have qualifying earned income and meet the adjusted gross income limits for your filing status. These accounts offer important tax advantages and can help you keep your retirement savings on track while living abroad.

Note: Egypt does not automatically recognize the tax-deferred status of US retirement accounts. This means contributions,and in some cases, investment growth, may be taxable locally, even if they are tax-advantaged in the US.

Expats should review the US–Egypt tax treaty and consult a local tax advisor to understand how Egypt taxes retirement income and contributions.

Visas for US Citizens in Egypt

Most Americans moving to Egypt will need a residence permit or long-stay visa, depending on the purpose of their stay. Short visits (up to 30 days per entry) are allowed under Egypt’s tourist visa system, available both on arrival and through the official e-Visa portal.

Strategically located at the crossroads of Africa, the Middle East, and Europe, Egypt offers a range of visa options for those looking to stay longer. These include work and study visas, as well as residency by investment programs, often referred to as Egypt’s version of a “Golden Visa.”

While Egypt does not have a dedicated digital nomad visa, the government has announced plans to introduce a 5-year multiple-entry tourist visa to help boost tourism and bring more foreign currency into the country. The visa has not yet been launched, but once implemented, it is expected to allow foreigners to make repeated stays in Egypt over a five-year period.

Golden Visa / Permanent Residency and Citizenship by Investment

Egypt offers two investment-based visa pathways designed to attract foreign investors — one that provides long-term residency, and another that offers a direct route to citizenship. Both programs are administered by the Ministry of Interior and the General Authority for Investment and Free Zones (GAFI).

Residency by Investment

Egypt’s Residency by Investment Visa, officially known as the Residence Permit for Foreign Investors, allows foreign nationals to obtain renewable residency through qualifying real estate or capital investment.

Applicants must purchase property valued at a minimum of USD 50,000, with the duration of residency tied to the investment amount, USD 50,000 grants one year, USD 100,000 provides three years, and USD 200,000 offers five years of renewable residence. The permit covers the investor’s spouse and dependent children, providing family relocation under a single application.

Holders can live, work, and invest in Egypt and gain access to local education, healthcare, and property rights. To maintain eligibility, investors must keep ownership of the property and remain in good legal standing throughout their stay.

Citizenship by Investment

The Egyptian Citizenship by Investment Program grants full Egyptian citizenship to qualifying investors and their families, providing permanent status with no residence or language requirements. Dual citizenship is permitted, allowing investors to retain their original nationality.

Applicants can qualify through several investment routes, including:

• USD 250,000 non-refundable contribution to the state treasury
• USD 300,000 real estate purchase in registered property held for five years
• USD 350,000 investment in an Egyptian business plus a USD 100,000 donation
• USD 500,000 refundable bank deposit held in local currency for three years

Approved applicants receive full Egyptian citizenship and passports, extending the same rights and protections as other nationals. Family members can be included in the same application, offering a stable, long-term solution for investors seeking deeper ties to Egypt.

Other Residency Pathways for Foreign Nationals

Beyond the Residency by Investment and Citizenship by Investment programs, Egypt also offers work, study, and family reunification visas. These options allow foreigners to live in Egypt for employment with a local company, enrollment in an accredited educational institution, or to join immediate family members who are Egyptian citizens or legal residents. Each visa type has its own requirements, typically including proof of income, housing arrangements, admission or employment documents, and valid health insurance.

Healthcare in Egypt

Egypt’s healthcare system includes both public and private sectors, with the public system funded through national insurance contributions and government subsidies under the Universal Health Insurance System (UHIS). While the UHIS provides affordable basic care, most expats opt for private healthcare due to its higher service quality, English-speaking staff, and shorter wait times.

As a US expat in Egypt, you have several healthcare options:

• Public healthcare (UHIS): Available to residents contributing to the Universal Health Insurance System. Services are low-cost but often limited in quality, facilities, and accessibility outside major cities.
• Private healthcare: Most expats rely on private hospitals and clinics, particularly in Cairo, Alexandria, and coastal cities. Costs are significantly lower than in the US but vary by provider and level of care.
• International or supplemental insurance: Many expats purchase international health insurance to ensure access to private hospitals, specialist treatment, and medical evacuation if needed.

Proof of private health insurance is generally required for residency applications, as it guarantees coverage before enrolling in any national system.

Cost of Living in Egypt

For US expats, Egypt offers one of the most affordable costs of living in the Middle East and North Africa. Daily expenses such as food, transportation, and services are relatively inexpensive, though prices can vary significantly between Cairo and smaller cities.

Housing is especially affordable; a one-bedroom apartment in central Cairo or Alexandria typically rents for USD 400-700 per month, while similar apartments in smaller cities may cost less than USD 300. Groceries, local produce, and dining out are inexpensive, but imported goods and international brands tend to carry higher prices.

Transportation is widely accessible. Egypt has an extensive public transportation network, including buses, metro lines in Cairo, and ride-hailing apps such as Uber and Careem. Taxis are affordable, and fuel prices remain low by global standards, though owning a car can still add maintenance and parking costs.

Typical monthly costs for expats include:

• Utilities: USD 50–120, depending on air conditioning use and city
• Internet: USD 20–35, with reliable coverage in major urban areas
• Mobile plans: USD 10–15 for prepaid or SIM-only options

Overall, Egypt offers a comfortable lifestyle for US expats at a fraction of the cost of living in the US, particularly for housing, dining, and transportation. Those seeking Western-style amenities or imported products should expect higher prices.

Best Places to Live in Egypt for US Expats

While you’ll find Americans across Egypt, certain areas attract larger expat communities and offer more familiar comforts. From the historic streets of Cairo to the laid-back Red Sea coast, each destination offers a distinct lifestyle suited to different needs, whether you’re working, retiring, or simply seeking a cultural adventure.

1. Cairo

Cairo is Egypt’s capital and the center of expat life. It blends modern convenience with deep history, from the Nile River to the Pyramids of Giza. Most Americans live in Maadi, Zamalek, or New Cairo, where you’ll find international schools, embassies, and high-quality medical facilities for those with private health insurance. Busy yet vibrant, the city is ideal for professionals in business, education, or diplomacy.

2. Alexandria

Set along the Mediterranean coast, Alexandria offers a cooler climate and a slower pace than Cairo. Its seafront Corniche, historic architecture, and growing international community make it popular with expats seeking urban comforts in a relaxed coastal setting.

3. Hurghada

A major Red Sea hub, Hurghada attracts expats looking for affordable coastal living and year-round sunshine. With beaches, diving, and strong expat networks, it’s especially popular among retirees and digital nomads. English is widely spoken, and private hospitals and international schools are available.

4. Sharm El-Sheikh

At the southern tip of the Sinai Peninsula, Sharm El-Sheikh offers resort-style living in a safe, peaceful setting. It’s known for diving, snorkeling, and desert adventures, with a small but welcoming expat community and reliable modern infrastructure.

5. El Gouna

El Gouna, a planned resort town north of Hurghada, is one of Egypt’s most modern and foreigner-friendly areas. Built around lagoons and marinas, it offers gated communities, international schools, and an eco-conscious lifestyle — perfect for families, entrepreneurs, and remote workers.

6. Luxor and Aswan

Set along the Nile, Luxor and Aswan provide a quieter, more traditional lifestyle steeped in history and culture. These southern cities are affordable, scenic, and ideal for expats seeking an authentic Egyptian experience away from the urban hustle and bustle.

Simplify Your US Expat Tax Filing with MyExpatTaxes

We know expat taxes can feel overwhelming, especially when balancing two tax systems at the same time. Whether you’re working in Cairo, running a business in Alexandria, reuniting with family, or making an investment in Egypt, staying compliant doesn’t have to be stressful.

With MyExpatTaxes, you can file your US tax return confidently, take advantage of expat tax benefits, avoid overpaying, and focus on building your new life in Egypt.

Start filing with MyExpatTaxes today, and make your move to Egypt worry-free.

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