Banking, Money and Taxes in Egypt
Expats have been frustrated with Egyptian banks, incurring hefty fees and service charges, and poor exchange rates. However, international banks in Egypt offer all of the modern amenities of any country such as internet and phone banking and easy access to ATMs. The country's banks are not as well equipped for mortgages and loans.
Often businesses will pay employees directly through bank deposits at a certain bank, taking away the choice, or hassle, of selecting a favourite bank. Opening an account is fairly straightforward simple and expats should bring their passport, a letter from the company, proof of address and an initial cash deposit to do so. Inconveniently, banks in Egypt close at 2pm.
Often businesses will pay employees directly through bank deposits at a certain bank, taking away the choice, or hassle, of selecting a favourite bank. Opening an account is fairly straightforward simple and expats should bring their passport, a letter from the company, proof of address and an initial cash deposit to do so. Inconveniently, banks in Egypt close at 2pm.
Taxes
Living in Egypt does not exempt expats from paying taxes in their home country which usually taxes individuals on their world income. Egypt has signed tax treaties with many countries, which protects individuals from paying income tax in both countries. However, expats are liable for income tax in Egypt dependent on their residency statues. To qualify as a resident for tax purposes an expat must have lived in Egypt for five years. If an expat qualifies as a tax resident they are, in general, only taxed on income derived from within Egypt and not worldwide revenue. Non-residents do not need to file taxes although income they receive in Egypt is still taxed.Income is taxed progressively from 20 to 40 percent depending on their gross income but expats should check with employers to see what part of relocation bonuses are tax free in Egypt. This can range from housing allowances to life insurance. Taxes are intrinsically complicated and made more so in a foreign country and filing duel country tax papers at separate deadlines (1st of April in Egypt). It is wise to hire a professional expat tax agency to help.
