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Hospitality & tourism · Sharm El Sheikh & South Sinai
Tourism Investment in Egypt:
Accounting, Tax and Licensing
Hotels, tourist restaurants, dive centres and tourism companies in Sharm El Sheikh answer to more authorities than an ordinary business. Here is how tourism investment in Egypt is licensed and taxed as of October 2026, under Law 8/2022, Law 27/2023 and the Sinai rules, and the work we do for these businesses from Office 314, Al Azizia Mall.
- Chartered Accountant (محاسب قانوني)
- Rules checked October 2026
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- Same-day replies, 09:00–23:00 daily
01How it works
Tourism investment in Egypt: three layers of rules
A tourism business in Egypt carries two layers of rules. The first applies to every company: the Commercial Register, a tax card, VAT registration once turnover reaches EGP 500,000, payroll and social insurance, and a tax return every year. The second belongs to tourism: a Ministry of Tourism licence, membership of the right tourism chamber, the Ministry's own approval for foreign staff and, for dive centres, the Chamber of Diving and Watersports (CDWS).
Law 8/2022 brought hotels, restaurants, cafés, diving, safari and marine centres under one licensing regime. It puts deadlines on the authorities as well as on the owner, and one licence fee covers every agency involved.
Sharm El Sheikh adds a third layer. Under Decree 128/2022, a non-Egyptian investment project in Sharm must be an Egyptian joint stock company, and since 1 November 2022 every business here that sells to consumers must issue e-receipts (ETA Decision 484/2022).
Then there are the seasons. Revenue rises and falls with tourist arrivals, but VAT returns fall due every month (quarterly under the simplified regime), payroll returns every quarter and built-property tax at the end of June and the end of December. The quiet months are paid for in the busy ones, so we plan that cash flow with you.
We work on all three layers from Office 314, Al Azizia Mall: the company under the Sinai rules, its registrations and licences, then the books, e-receipts, payroll and returns, every year.
02Sector guides
Your tourism business accountant in Egypt: choose your type of business
Each guide sets out the licence chain, the tax points and the staffing rules for one kind of tourism business, as of October 2026.
Hotels and resortsLaw 8/2022 licensing, chamber membership, 14% VAT, entertainment tax on shows, and payroll for a large seasonal team.Manager licence, with its own fee, renewed yearly at half the feeAlcohol or shisha licence, with its own feeA monthly guest statement to the MinistryHotel licensing and tax
Restaurants and cafésTwo tracks: a tourist restaurant licensed by the Ministry of Tourism, or a shop under Public Shops Law 154/2019, which may not call itself tourist. The track and the ETA criteria decide your VAT.Tourist restaurants and cafés charge 14% VATNon-tourist outlets in malls or selling on apps charge it tooE-receipts for consumer sales in Sharm since 1 November 2022Opening a restaurant or café
Diving centresThe company, the Ministry of Tourism licence for diving and marine activities, CDWS membership, then permits and CDWS cards for foreign instructors.Resident foreign pros: licensed employer, work permit, CDWS cardA 2-month temporary card while the permit is pendingBoat ratio 1:12; Discover Scuba 1:2, from shore onlyOpening a dive centre
Tourism companies and safarisAs shown on the Ministry of Tourism site on 10 October 2026, issuing new tourism-company licences is temporarily suspended. What that means for excursion and safari businesses.Licensed under Law 38/1977, with a chamber certificate every yearDesert safaris only through licensed tourism companiesRoutes and lists filed at least 21 days aheadTourism company licensing03Key facts
Law 8 of 2022 on hotel establishments, and the other key rules
The figures that apply to hotels, tourist restaurants and cafés, dive, safari and marine centres. Fees are the ranges set by law.
| Rule | As of October 2026 | Law |
|---|---|---|
| Who is licensed | Hotels, restaurants, cafés, diving, safari and marine centres, under one regime | Law 8/2022; PM Decree 705/2023 |
| Ministry of Tourism decision | Within 30 working days, or the application is deemed initially approved | Law 8/2022 |
| Other agencies | Within 45 days, or their approval is deemed given; the licence follows within 30 days | Law 8/2022 |
| Licence fee | Set by the Ministry of Tourism within a legal range, covering all agencies | Law 8/2022 |
| Inspection fee | Set by the Ministry of Tourism within a legal range | Law 8/2022 |
| Operating without a licence | Fine of EGP 50,000 to 500,000; a repeat brings 6 to 12 months' prison and/or double fines, plus closure | Law 8/2022 |
| Chamber membership | Compulsory; joining fee set by the chamber | Law 27/2023 |
| Entertainment tax | 25% on hotel, nightclub and casino shows, 30% on discos, 20% on other venues; paid within 24 hours | Real Estate Tax Authority |
| VAT on meals | 14% at tourist restaurants and cafés; non-tourist outlets exempt unless an ETA criterion applies | ETA, 18 May 2025 |
| E-receipts | Every business selling to consumers in the Sharm El Sheikh area, since 1 November 2022 | ETA Decision 484/2022 |
| Foreign staff | Ministry of Tourism approval on top of the work permit (fee set by ministerial decision) | Labour Law 14/2025; Ministry of Tourism |
What the table does not show
- Existing outlets get one year to regularise from the day after the Minister's special-requirements decree is published; the Prime Minister can extend that to about three years overall.
- Temporary permits run for up to three months.
- A first offence that is not serious can be settled at twice the minimum fine.
- Tourism companies, licensed under Law 38/1977, must show a valid chamber certificate every year, or face a one-month suspension and then full suspension.
- Entertainment tax paid late adds 10% a day, for up to 10 days.
- Costs without an e-invoice or e-receipt are not recognised for tax.
For a café, the VAT line needs the closest look. A non-tourist outlet becomes taxable if it is in a mall, compound, tourist site or airport, belongs to a chain or known brand, sells through apps or websites, offers tourist-standard service or charges a service fee. Our guide to which restaurants and cafés charge 14% VAT works through Sharm examples, and our VAT service covers registration and returns. For foreign staff, start with work permits and our guide to hiring foreign staff in a Sharm hotel or dive centre.
Opening a tourism business in Sharm?
Pick where you are, estimate your set-up costs or ask us on WhatsApp.
Guides
Guides for tourism businesses
Tourism businessesEgypt Tourist VAT Refund: How It Works in Sharm El Sheikh for Visitors and ShopsHow the Egypt tourist VAT refund works, as of October 2026: the EGP 1,500 minimum invoice, the stay of 3 months or…
Tourism businessesWork Permits for Dive Instructors in Egypt: Hiring Foreign Staff in Sharm Hotels and Dive CentresA foreign dive instructor or hotel employee in Sharm El Sheikh needs approvals from the labour office, the Ministry of Tourism and,…
Tourism businessesDoes Your Restaurant or Café in Sharm Charge 14% VAT? The ETA Criteria ExplainedWhether a restaurant or café in Sharm El Sheikh charges 14% VAT depends on its licence and on the criteria the Egyptian…04FAQ
Hospitality tax in Egypt and tourism businesses: questions
Can a foreigner open a tourism business in Sharm El Sheikh?
Yes, through a company. Under Decree 128/2022, a non-Egyptian investment project in Sharm El Sheikh or Dahab must be an Egyptian joint stock company, and changes of shareholders need security approvals. The decree sets no minimum Egyptian percentage, but land stays Egyptian-only. The tourism licence, chamber membership and staff approvals then follow as for any operator.
How long does a Law 8/2022 tourism licence take?
The law puts deadlines on the authorities. The Ministry of Tourism must decide within 30 working days, or the application is deemed initially approved; other agencies have 45 days, after which their approval is deemed given. The licence itself follows within 30 days. Getting the company, the premises and the file ready comes before that clock starts.
What is the fine for running a tourist restaurant or café without a licence?
Under Law 8/2022, operating without a licence carries a fine of EGP 50,000 to 500,000. A repeat offence can bring six to twelve months' prison and/or double fines, plus closure. A first offence that is not serious can be settled at twice the minimum fine. Outlets that predate the law were given a regularisation period; we check yours.
Do tourism businesses have to join a chamber?
Yes. Law 27/2023 makes membership of the relevant tourism chamber compulsory, with a joining fee set by the chamber. Tourism companies licensed under Law 38/1977 must show a valid membership certificate every year, or face a one-month suspension and then full suspension. Dive centres also deal with the Chamber of Diving and Watersports (CDWS).
Do hotels and dive centres need approval to hire foreign staff?
Yes, on two levels, as of October 2026. The employer applies for a work permit under Labour Law 14/2025, with fees set by ministerial decision. Hotels, tourist restaurants and cafés, tourism companies and dive centres also need the Ministry of Tourism's own approval. Resident foreign dive professionals need a CDWS card as well.
Clarity today. Confidence tomorrow.
Your accountant on the ground in South Sinai
Tell us what you run or plan to open, and where. We reply the same day during office hours (09:00–23:00, every day), usually on WhatsApp, in Arabic, English, Italian or Russian.