The guarantees and incentives available under Egypt's Investment Law, where the special tax deduction stands now that its establishment window has closed, and how the Golden Licence simplifies approvals for strategic projects.
Egypt offers investors a combination of legal guarantees, tax incentives and simplified approvals. For projects being planned now, timing matters: under the current law, the window for establishing new projects that qualify for the main tax deduction closed on 28 October 2026.
Investor guarantees
The Investment Law (Law No. 72 of 2017, as amended) gives Egyptian and foreign investors a set of core guarantees, including:
- equal treatment of foreign and Egyptian investors;
- protection against nationalisation, with expropriation allowed only for a public purpose and against fair compensation;
- freedom to transfer capital and profits abroad;
- protection against withdrawal of licences or land without notice and an opportunity to remedy;
- residence for foreign investors for the duration of the project.
Disputes can be taken to the investment dispute resolution committees, and Egypt is party to the ICSID Convention and the New York Convention.
General incentives
Qualifying projects benefit from, among other things, a unified customs rate of 2% on imported machinery and equipment, and a five-year exemption from stamp duty and from notarisation and registration fees on company documents, financing and security contracts, and land registration.
The special incentive
Article 11 of the Investment Law provides a deduction from taxable net profits, calculated on the project's investment costs:
- 50% of investment costs for projects in Sector A, which covers the geographic areas most in need of development, such as the Suez Canal Economic Zone and Upper Egypt;
- 30% for Sector B projects elsewhere in Egypt, in priority activities such as export-oriented industry, pharmaceuticals, food, chemicals and engineering.
The deduction is capped at 80% of paid-up capital and must be used within seven years of the start of operations. To qualify, the company had to be established within the period set by the law, which the Cabinet extended in stages to 28 October 2026, the maximum cumulative period of nine years that the law allows. New projects established after that date can benefit only if the law is amended, so investors should confirm the current position before relying on this incentive.
A separate cash incentive, introduced in 2023, refunds part of the corporate tax on income from specified industrial activities, subject to conditions including foreign-currency financing and starting operations within six years of its introduction. Unlike the deduction, this incentive remains open.
The Golden Licence
The Golden Licence is a single approval covering a project's establishment, land allocation, building permits and operation, in place of a series of separate approvals from different authorities. It is available to projects in strategic sectors designated by the Cabinet, which currently include electricity and renewables, petroleum and minerals, industry, information technology, transport, tourism, utilities and housing. For large projects, it can save significant time.
Choosing the regime
Investors can establish under the general investment regime, in free zones, which are exempt from most taxes and pay an annual fee instead, or in special zones such as the Suez Canal Economic Zone. Each regime has different benefits and obligations, so the choice should be made with the project's markets and tax position in mind.
How we can help
We advise investors on structuring projects in Egypt, choosing the right regime, applying for incentives and the Golden Licence, and obtaining licences and land. Contact us to discuss your project.
This briefing reflects the position as at November 2026. This briefing is not tax advice.
This briefing is for general information only and is not legal advice. For advice on your situation, contact us.