Banking, Money and Taxes in Egypt
Expats often find banking and managing taxes in Egypt frustrating.
Poor exchange rates, hefty fees and constant service charges blacken the local banking name. Furthermore, banks in Egypt are not well equipped to deal with large loans and mortgages. There are many international bank branches present in the nation, and these offer all of the modern amenities of any country such as Internet, phone banking, and easy access to ATMs.
Often businesses in Egypt 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 and expats should bring their passport, a letter from their employer, proof of address and an initial cash deposit to do so. Inconveniently, banks in Egypt close at 2pm.
Living in Egypt does not exempt expats from paying taxes in their home country. Egypt has, however, signed tax treaties with many countries, which protect individuals from paying income tax in both countries. Expats are still liable for income tax in Egypt, dependent on their residency status.
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 on 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 gross income. 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 it is wise to hire a professional expat tax agency to help manage the process of filing in more than one country.
Banking in Egypt
Poor exchange rates, hefty fees and constant service charges blacken the local banking name. Furthermore, banks in Egypt are not well equipped to deal with large loans and mortgages. There are many international bank branches present in the nation, and these offer all of the modern amenities of any country such as Internet, phone banking, and easy access to ATMs.
Often businesses in Egypt 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 and expats should bring their passport, a letter from their employer, proof of address and an initial cash deposit to do so. Inconveniently, banks in Egypt close at 2pm.
Taxes in Egypt
Living in Egypt does not exempt expats from paying taxes in their home country. Egypt has, however, signed tax treaties with many countries, which protect individuals from paying income tax in both countries. Expats are still liable for income tax in Egypt, dependent on their residency status.
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 on 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 gross income. 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 it is wise to hire a professional expat tax agency to help manage the process of filing in more than one country.
