Sharm & South SinaiHow to Choose an Accountant in Sharm El Sheikh: 8 Questions to Ask FirstEight questions to ask before you hire an accountant in Sharm El Sheikh: e-receipts, VAT or the simplified regime, payroll, deadlines, the…
FAQ · Sharm El Sheikh & South Sinai
Frequently Asked Questions
Short, dated answers to the company formation and tax questions we hear most at Office 314 in Sharm El Sheikh: ownership, costs, timelines, VAT and e-receipts, residency, property tax and the Sinai rules. Each answer is checked against the law as of October 2026 and points to the page that covers it in full.
- Chartered Accountant (محاسب قانوني)
- Rules checked on 10 October 2026
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Eight topics, forty answers
Company formation and tax FAQ for Egypt, by topic
Jump to the group closest to your question. Every answer stands on its own, carries its date, and is followed by links to the pages that explain it in full.
5 questionsCompany formationForeign ownership, partners and managers, company forms, timelines and government fees.Read the answers5 questionsSharm & Sinai rulesDecree 128/2022, the 55% myth, the decree's maps, Hurghada and share transfers.Read the answers6 questionsTaxCorporate tax, the Law 6/2025 regime, deadlines, foreigners, pensions and disputes.Read the answers4 questionsVAT & e-receiptsThe EGP 500,000 threshold, e-receipts in Sharm, restaurants and construction.Read the answers4 questionsAccounting & complianceBooks for everyone from 2028, the annual audit, payroll and GAFI reports.Read the answers6 questionsResidency & workResidence routes, retirement, Sharm apartments, renewals, work permits and dive staff.Read the answers5 questionsPropertyUsufruct in Sharm, built-property tax, rent, holiday-home licences and selling.Read the answers5 questionsWorking with usLanguages, fees, clients outside Sharm, partner offices and how current this is.Read the answers
01Company formation
Questions about opening a company in Egypt: ownership, forms and timelines
Can a foreigner own 100% of a company in Egypt?
In most activities, yes. As of October 2026, foreigners can own 100% of most investment projects, and the repatriation of profits and capital is guaranteed. The exceptions are commercial agency, which is restricted to Egyptians, importing for trade, which has its own registration rules, and Sinai, where Sharm El Sheikh and El Tor follow special regimes.
Do I need an Egyptian partner or manager?
Usually not. Law 159/1981 sets no nationality condition for LLC managers, and a joint-stock company's board of at least three can be of any nationality. GAFI's 2026 file asks foreign founders and managers for security-inquiry forms, not for a local partner. Check your activity, though: commercial agency is reserved for Egyptians, and Sinai has its own ownership rules.
LLC, one-person company or joint-stock company: which one suits me?
It depends on the owners and the location. An LLC takes 2 to 50 partners and has no statutory minimum capital. A one-person company has a single owner and EGP 1,000 capital, fully paid. A joint-stock company needs at least three founders and EGP 250,000 issued capital, and it is the required form for non-Egyptian projects in Sharm El Sheikh.
How long does it take to register a company in Egypt?
GAFI states one working day for a one-person company or joint-stock company filed in person at its service centres. LLCs go through the e-portal instead, so do not plan on an LLC in a day. Practitioners report one to two weeks once the documents are ready, and the security-inquiry forms for foreign founders and managers can add time.
How much does it cost to open a company in Egypt?
Government fees are mostly percentages with caps. The government items are GAFI's notification fee, the Bar Association's certification fee, the notary's fee and the Commercial Register fee; most scale with capital, within caps, and we confirm the current amounts in your quote. Our own fees depend on the scope of work, and we quote them in writing first.
02Sharm & Sinai rules
Sharm El Sheikh and South Sinai: the rules that differ
Sinai has its own investment rules, and Sharm El Sheikh, Dahab and El Tor do not all follow the same one.
Can I open a company in Sharm El Sheikh as a foreigner?
Yes, in a set form. Since 1 April 2022, Presidential Decree 128/2022 requires a non-Egyptian investment project in Sharm El Sheikh, Dahab or the Gulf of Aqaba tourism sector to be an Egyptian joint-stock company. The decree sets no minimum Egyptian share, but changes of founders, shareholdings or articles need security approvals plus GAFI or FRA approval.
Do I need a 55% Egyptian partner in Sharm El Sheikh?
No. The 55% rule comes from Law 14/2012, which still applies in El Tor, Saint Catherine, Ras Sudr and North Sinai, together with a Sinai Development Agency licence. Sharm El Sheikh and Dahab follow Decree 128/2022, which sets no Egyptian percentage. "Sharm has no restrictions" is just as wrong: the joint-stock form, the approvals and Egyptian-only land still apply.
Are Nabq, Nuweiba and Taba inside the Decree 128 areas?
It depends on the decree's maps. Decree 128/2022 covers Sharm El Sheikh, Dahab and the Gulf of Aqaba tourism sector as drawn on those maps, so edges such as Nabq and the airport surroundings, and towns such as Nuweiba and Taba, are checked plot by plot. Send us the location and your ownership plan before you sign anything.
Do the Sinai rules apply in Hurghada?
No. Hurghada and the Red Sea governorate are outside the Sinai regime, so most activities there can be 100% foreign-owned. For residential units in Hurghada and the Red Sea tourist area, foreigners are treated like Egyptians, subject to the approval of the competent authorities. A project in Sharm El Sheikh still follows Decree 128/2022, wherever its owners live.
What does it take to transfer shares in a Sharm El Sheikh company?
Approvals first. GAFI charges an approval fee for a share transfer in a company inside Sinai or the Decree 128 areas. If the company is more than three months old, the file needs a Commercial Register extract showing at least 25% of capital paid. Security approvals from Defence, Interior and General Intelligence come on top.
Read in full: company formation in Sharm and South Sinai · the 51%, 55% and nominee myths · our work across South Sinai · business in Dahab · Hurghada and the Red Sea · Sinai rules navigator
03Tax
Common questions about tax in Egypt: rates, regimes and deadlines
What is the corporate tax rate in Egypt in 2026?
22.5% of taxable profit, as of October 2026. Oil and gas companies pay 40.55%, and the Suez Canal Authority, EGPC and the Central Bank pay 40%. There are no local corporate taxes, surtax or minimum tax, and losses carry forward for five years. Profits paid out as dividends then carry 10% dividend tax, or 5% on listed shares.
What is the simplified tax regime under Law 6/2025?
A permanent regime for companies and freelance professionals with turnover up to EGP 20 million, in force since 1 March 2025. Tax is a share of turnover: 0.4% below EGP 500,000, rising through 0.5%, 0.75% and 1% to 1.5% from EGP 10 million. You commit for five years, file VAT quarterly and must issue e-invoices or e-receipts.
When are tax returns due in Egypt?
For a December year-end, companies file by 30 April and individuals between 1 January and 31 March. Monthly VAT returns are due by the end of the following month, payroll returns every January, April, July and October, and the annual payroll settlement in January. When a deadline falls on an official holiday, the Egyptian Tax Authority extends it.
Do foreigners pay income tax in Egypt?
On Egyptian income, yes. You become tax resident with a permanent home in Egypt or more than 183 days here in any 12 months, and a resident's foreign income is taxed only if their centre of activity is in Egypt. Personal rates run from 0% to 27.5% under Law 7/2024. Egypt has no inheritance, gift or net-wealth tax.
Is my foreign pension taxed in Egypt?
PwC's Worldwide Tax Summaries, reviewed on 17 August 2026, list pensions and end-of-service bonuses as exempt from Egyptian income tax. Whether that covers a pension paid from abroad, and what your home country taxes under its treaty with Egypt, depends on your case. Egypt has treaties with Italy, Russia, the UK, Germany, Ukraine and Poland. We check your documents first.
What happens if the tax office disputes my return?
The path runs from the inspection to an internal committee, then the appeal committee, then court within 30 days. The limitation period is five years, or six for evasion. Additional tax of 20% or 40% is halved if you reach agreement before the appeal committee, and until 31 December 2026 Law 152/2026 lets you settle open disputes.
04VAT & e-receipts
VAT, e-invoices and e-receipts
When must a business register for VAT in Egypt?
At EGP 500,000 of annual turnover, according to the Egyptian Tax Authority's own FAQ, checked on 10 October 2026; the EGP 250,000 figure repeated online is wrong. Importers for trade, exporters, distribution agents and suppliers of table-tax goods register regardless of turnover. The standard rate is 14%, with 5% on machinery and medical devices, and returns are monthly.
Do I need e-receipts for my shop or café in Sharm El Sheikh?
Yes, if you sell to consumers and are registered for income tax or VAT. ETA Decision 484/2022 made e-receipts compulsory in the Sharm El Sheikh area from 1 November 2022. Sales to businesses need e-invoices, which every ETA taxpayer must issue. Costs without an e-invoice or e-receipt behind them are not recognised for tax.
Do restaurants and cafés in Sharm El Sheikh charge VAT?
Tourist restaurants licensed by the Ministry of Tourism charge 14% VAT. Other outlets are exempt unless one condition applies: a location in a mall, compound, tourist site or airport, being a chain or known brand, selling through apps or websites, tourist-standard service, or a service charge on the bill. Check each condition before you price the menu.
Is VAT charged on rent and on construction work?
Residential leases are exempt from VAT. Construction is not: since Law 157/2025 took effect on 18 July 2025, it carries the standard 14% with input credit. Contracts already running may instead use a transitional base of 36% of the invoice, without input deduction, under MoF Decision 418/2025. Which option suits a running contract is worth calculating first.
Starting a project in Sharm?
Tell us what you plan to open and where. We map the company form, tax card, VAT, e-receipts and residency steps for your case, then send a written quote.
05Accounting & compliance
Books, audit, payroll and yearly filings
Does every business in Egypt have to keep books?
Yes, from tax period 2028. Law 150/2026 requires regular books from every business and abolishes the old EGP 500,000 threshold. Law 151/2026 repealed Article 18 of the Income Tax Law, so estimated assessment ends with the 2027 tax period and assessment from your books begins. If your records are thin today, 2027 is the year to fix them.
Does my company need an annual audit?
Yes, if it is a joint-stock company, an LLC or a one-person company: Law 159/1981 requires an auditor for all three. The ordinary general assembly meets within three months of year-end, 5% of profit goes to a legal reserve until it reaches half the capital, and employees receive at least 10% of distributed profits, capped at their annual wages.
What does an employer pay for social insurance in South Sinai?
As of 2026, the employer pays 18.75% and the employee 11%, on an insurable wage between EGP 2,700 and EGP 16,700 a month. Universal Health Insurance is live in South Sinai, adding 4% for the employer and 1% for the employee, and businesses pay a 0.25% solidarity contribution on revenue, now deductible. Payroll tax returns are filed quarterly.
Does my company have to file GAFI FDI reports?
Only if it has any non-Egyptian ownership. Those companies report to GAFI within 30 days of incorporation or of a change, every quarter within 45 days, and once a year within four months, under Decree 2731/2019; missing them risks an EGP 50,000 penalty. A wholly Egyptian-owned company does not file them, whatever some checklists say.
06Residency & work
Residence permits and work permits
How do I get a residence permit in Egypt?
Residence is granted by purpose under Law 89/1960: tourism, work, study, family, ownership or investment. You book on the Interior Ministry portal, eres.moi.gov.eg, and pay the fees in hard currency converted through a bank, with a recent receipt. Newcomers receive renewable residence, not permanent residence. The right route depends on what you own or do here.
Does Egypt have a retirement visa?
No. As of October 2026 Egypt has no dedicated retirement visa, and newcomers cannot obtain permanent residence. Retired people build their file on another purpose recognised by Law 89/1960, such as property ownership, family or tourism, and renew it. Which purpose fits depends on what you own here and how long you stay each year.
Can I get residency by buying an apartment in Sharm El Sheikh?
Property ownership is a recognised route: the residence length depends on the registered USD value of the property, and the authorities confirm the current tiers at application. Sharm adds a question. Foreigners there hold units through long-term usufruct, not land ownership, and whether a Sharm usufruct supports a property residence file is checked against your own contract.
Where do I renew my residence permit in Sharm El Sheikh?
Book first on eres.moi.gov.eg. In Sharm El Sheikh, Google Maps lists the Police Complex (المجمع الشرطي) as the passport and visa office; check its hours before you go. Take your passport, the papers behind your residence purpose and a recent bank receipt for fees paid from converted hard currency. We check the file before you queue.
Can foreigners work in Egypt without a work permit?
Generally not. Under Labour Law 14/2025, in force since 1 September 2025, foreign employees need a permit, with fees set by ministerial decision. Holders of investor residence are exempt, but their start and end of work must be notified within 7 days. Hotels, tourist restaurants and dive centres also need Ministry of Tourism approval.
What does a foreign dive instructor need to work in Sharm El Sheikh?
A resident foreign dive professional needs an employer licensed by the Ministry of Tourism, a work permit and a CDWS card, which requires accident insurance. While the permit is pending, CDWS issues a 2-month temporary card. Visiting instructors who bring their own clients need neither. The CDWS South Sinai office is at 2 Zoo Street, Hadaba.
07Property
Property in Sharm: ownership and tax
Can foreigners buy property in Sharm El Sheikh?
Not as owners of the land. Under Decree 128/2022, land and buildings in Sharm El Sheikh may be owned only by Egyptians or wholly Egyptian-owned entities, and Law 11/2024 did not change that. Foreigners hold units through long-term usufruct, with the term set by the contract and the approvals. Every dealing needs prior security approval, or the contract is void.
Do I pay property tax on my apartment in Sharm El Sheikh?
Almost certainly. Built-property tax is 10% of the unit's annual rental value after a 30% deduction for homes, and it applies to every unit, chalets and empty flats included. The owner or usufruct holder pays, in instalments due by the end of June and December. Per the RTA, the 2026 main-home exemption does not cover holiday homes.
Is rent from my apartment taxable in Egypt?
Yes. Rent from a unit let under an ordinary lease or let furnished is taxed on the actual rent minus 50%, then at the personal brackets, and the built-property tax paid on the unit is credited against that income tax. The old option to deduct actual costs was repealed in 2008. Individuals file between 1 January and 31 March.
How do I license my flat for holiday rentals?
Through the Ministry of Tourism's holiday-home licence, announced on 6 April 2025. The unit must be in a tourist area or a distinguished residential compound; you notify the Ministry and obtain a Tourism Suitability Certificate, and a foreign individual applicant needs a valid residence permit. Fees: the Ministry of Tourism's inspection fee, first-licence fee and yearly renewal fee.
What tax do I pay when I sell my apartment?
The real-estate disposal tax: 2.5% of the gross value, with no deductions, payable within 60 days. It also applies to granting a usufruct, a lease of more than 50 years and gifts to anyone other than parents, spouses or children, which matters for Sharm usufruct units. A sale by a company or sole proprietorship is taxed as business income instead.
Read in full: can foreigners buy property in Sharm · tax for property owners and landlords · property tax for foreigners in 2026 · renting out your Sharm apartment · selling your apartment and the 2.5% tax · developers, brokers and investors
08Working with us
Working with our office
Do you work in Italian and Russian?
Yes. Consultations are available in Arabic, English, Italian and Russian, and each version of this website is written natively, not translated line by line. Write to us on WhatsApp in your own language and we reply the same day during office hours, 09:00 to 23:00 every day. You can also call or visit Office 314 in Al Azizia Mall.
How do your fees work?
We do not publish a price list, because the work depends on your company form, activity, number of transactions, staff, VAT position and approvals. Send us your case and we reply the same day in office hours with the next steps, then a written quote once the scope is clear. Government fees are separate from ours.
Can you help if I live abroad or outside Sharm El Sheikh?
Yes. We work with clients across South Sinai, from Naama Bay, Hadaba and Nabq to Dahab and El Tor, and with owners abroad, by WhatsApp, phone, email and video call. Scans are enough to start. If a foreigner signs at GAFI for you under a power of attorney, that attorney-in-fact needs valid Egyptian residency.
Can you handle files outside Sharm, for example in Cairo?
Yes. Our office is in Sharm El Sheikh, and most tax and company work follows the same national rules anywhere in Egypt. For files outside South Sinai, for example in Cairo, we work with a network of partner accounting offices and lawyers. Start with us on WhatsApp, and your engagement letter says who does what.
How current are these answers, and are they advice?
Each answer reflects the rules as of October 2026 and is checked against the sources listed below. Egypt's rules move quickly: six tax laws, numbers 148 to 153 of 2026, came into force on 29 July 2026 alone. These answers are general information, not advice for your case, so send us your facts before you act.
Read in full: contact and opening hours · request a quote · about Eskander Gerges · how we check our facts · terms of use
Where these answers come from
Questions from the desk, answers from the law
These are the questions people bring to Office 314 in Al Azizia Mall and send us on WhatsApp, and the ones that keep coming back in Sharm El Sheikh: can a foreigner own the company, do I need e-receipts, what does my flat mean for tax and for residence.
Each answer is written to stand on its own in 40 to 60 words and checked against the official text listed in the sources below: the Official Gazette, the Egyptian Tax Authority, GAFI, the Ministry of Tourism and CDWS. Rules here change often. The second tax facilitation package alone brought six laws into force on 29 July 2026, so we review these answers whenever the law moves.
What we hold back is your case: the activity, the plot, the passport and the numbers that turn a general rule into a decision. That part belongs in a conversation, in Arabic, English, Italian or Russian.
- Every answer dated: rules as of October 2026
- Checked against the numbered sources below
- Reviewed by Eskander Gerges, Chartered Accountant
- Revised when the law changes
Insights
Longer guides behind these answers
When forty to sixty words are not enough: dated guides that name the law they rely on and the day we last checked it.
Sharm & South SinaiHow to Choose an Accountant in Sharm El Sheikh: 8 Questions to Ask FirstEight questions to ask before you hire an accountant in Sharm El Sheikh: e-receipts, VAT or the simplified regime, payroll, deadlines, the…
Tax & complianceEgypt Tax Deadlines 2027: Month-by-Month Dates for Companies, Employers and IndividualsEvery regular tax deadline in Egypt for 2027, month by month: individual returns by 31 March, company returns by 30 April, monthly…Tax & complianceLeaving the Simplified Tax Regime in Egypt: When It Happens and What ChangesWhen a business leaves Egypt's simplified tax regime under Law 6/2025: turnover above EGP 20 million, the one-time 20% margin, exclusion for…Clarity today. Confidence tomorrow.
Ask the question that is not on this list
Send it on WhatsApp in Arabic, English, Italian or Russian, with a line on where you operate and who owns what. We reply the same day during office hours, 09:00–23:00 every day.
Visit us
Office 314, Al Azizia Mall
On Al Salam Road in Ras Kennedy, Sharm El Sheikh. Open every day from 09:00 to 23:00. Bring your question and your papers; a WhatsApp message before you come helps us prepare.
Sharm El Sheikh office
Eskander Gerges — Chartered Accountant & Tax Expert
- Office 314, Al Azizia Mall, Ras Kennedy, Al Salam Road, Sharm El Sheikh, South Sinai, Egypt
- +20 103 349 3011
- Chat on WhatsApp
- +20 128 449 9230 (Alternative number)
- info@eskander-gerges.com
- Every day 09:00–23:00