Banking, Money and Taxes in Egypt
Expats often find banking and managing taxes in Egypt frustrating. While there are plenty of Egyptian banks available, expats often prefer to open accounts with international banks such as HSBC or Citibank which also have operations in the main urban areas in Egypt.
Dealing with the bureaucracy at Egyptian banks is difficult and fees for even the most basic services are high. To make matters worse, banking hours in Egypt are limited with most branches closing at 2pm.
ATMs are readily available throughout the country. Restaurants, shops and major attractions in Egyptian cities will accept international credit card payments.
Money in Egypt
The currency used in Egypt is the Egyptian Pound (EGP). It is divided up into 100 piastres.
Notes: 25pt, 50pt, 1 EGP, 5 EGP, 10 EGP, 20 EGP, 50 EGP, 100 EGP, and 200 EGP
Coins: 25pt, 50pt and 1 EGP
Banking in Egypt
Poor exchange rates, hefty fees and constant service charges sully the reputation of local banking in Egypt. Luckily, there are many international bank branches in the country, and these offer modern amenities such as internet and phone banking, as well as easy access to ATMs. Expats who already have an account with one of these banks in their home country will find it fairly easy to set up an account in Egypt.
However, businesses in Egypt will often pay employees directly through bank deposits at a certain bank, taking away the choice, or hassle, of selecting a bank.
Opening an account is straightforward. Required documents may vary from bank to bank but expats are likely to need their passport, proof of employment and proof of address along with an initial cash deposit.
Taxes in Egypt
Egypt has tax treaties with a number of countries which protect expats from paying income tax in two countries. Expats are still liable for income tax in Egypt, however. They may also have to pay tax on their worldwide income, depending on whether they are classified as a resident for tax purposes.
To qualify as a resident for tax purposes an expat must be resident in Egypt for a period of 183 days or more in a 12-month period. If an expat qualifies as a tax resident they must pay tax on both their local and worldwide income.
Money earned from within in Egypt is taxed progressively depending on gross income.
Taxes are intrinsically complicated and it is wise to hire a professional expat tax agency to help manage the process of filing in more than one country.