The Golden Visa in Egypt is a special type of long-term visa designed to attract foreign investors, entrepreneurs, and skilled professionals. This type of visa grants its holders certain privileges and rights aimed at stimulating economic growth and developing key sectors of the country’s economy.
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Why Consider Egypt for Obtaining a Golden Visa?
Short-term Residency through Investment
Long-term Residency through Investment in Egypt
- Real Estate Purchase
- Investment in Local Business
- Contribution to the State Budget
- Bank Deposit
- Starting a Business in Egypt
- General Taxation System in Egypt
- Small and Medium Enterprises (SMEs) Regime in Egypt
- Preferential Tax Regime
Advantages of Egyptian Citizenship
Disadvantages of the Golden Visa in Egypt
Why Consider Egypt for Obtaining a Golden Visa?
Considering Egypt for obtaining a Golden Visa has its advantages, especially for those who plan to live and do business in the country.
- A rapidly growing economy with numerous investment opportunities across various sectors such as tourism, agriculture, information technology, and manufacturing.
- Attractive conditions for doing business and investing, including tax incentives and government support.
After the government of Egypt passed legislative amendments in May 2023, the new conditions for the residency program are as follows:
Real Estate Investment
Investors have the option to invest in Egyptian real estate:
- An investment of $200,000 grants a 5-year residency permit.
- An investment of $100,000 grants a 3-year residency permit.
- An investment of $50,000 grants a 1-year residency permit.
If an investor chooses to invest in real estate, they are allowed to purchase one or several properties in Egypt, but only those registered in the Egyptian real estate registry. Egyptian developers are urging the government to allow investors to purchase properties not only registered in the registry. According to their data, only 8% of real estate in Egypt is registered in the national cadastral registry.
Investment in the Egyptian Economy
Investors have the option to deposit funds into a state bank in Egypt:
- An investment of $100,000 grants a 3-year residency permit.
- An investment of $50,000 grants a 1-year residency permit.
The deposit must be made in one of Egypt’s state banks, and it can be made in any foreign currency, not just in US dollars.
One of the program’s advantages is the possibility of extending the residency permit indefinitely as long as the investments are maintained. It is important to note that there are no physical presence requirements in the country. This type of residency does not lead to permanent residency (PR) or citizenship.
When investing in a bank deposit in Egypt to obtain a residency permit, the deposit is refundable. However, the refund is processed after a specified period outlined in the program’s terms, usually without interest.
It is also important to note that the refunded amount may be paid in the local currency at the exchange rate at the time of withdrawal, which could affect the final sum due to currency fluctuations. The conditions may vary depending on the specific program and the bank.
Long-term Residency through Investment in Egypt Citizenship
Egypt offers programs for obtaining citizenship through investment.
You can choose from several options:
Real Estate Purchase
An investor can purchase one or more properties with a minimum investment of $300,000. It is possible for multiple investors to collectively purchase a high-value property, which allows for multiple citizenship applications based on a single transaction.
Previously, foreign nationals were not allowed to own more than two properties in one city. Under the new rules, such restrictions no longer apply. Developers are also accommodating by offering lower down payments, installment payment plans, and cashback offers.
An important rule is that before selling the purchased property, the investor must own it for at least five years.
Investment in Local Business
An investor can either start a new company in Egypt or invest in an existing one. Both full ownership and partial ownership are allowed. The required investment amount is $350,000, along with a non-refundable contribution of $100,000 to the state fund. The main investment of $350,000 can be used for the company’s needs or withdrawn after obtaining citizenship.
Contribution to the State Budget
The investor is required to make a non-refundable contribution of $250,000 to the Central Bank of Egypt.
Bank Deposit
The investor can place a deposit of $500,000 in Egyptian pounds in the Central Bank of Egypt for three years, without earning interest. The deposit will be refunded at the exchange rate at the time of withdrawal.
Starting a Business in Egypt
As described above, one of the options for expedited citizenship through investment is investing in a business.
What are the Tax Conditions for Doing Business in Egypt?
General Taxation System in Egypt
| Type of Tax | Rate |
|---|---|
| Corporate Tax | 22.5% (up to 40.55% for the oil and gas sector) |
| Value Added Tax (VAT) | 14% |
| Dividend Tax | 10% |
| Capital Gains Tax | 10% for stock market, 22.5% for other assets |
| Customs Duties | 0% – 40% |
| Property Tax | 0.4% of the assessed value of the property |
| Social Contributions | Depends on the level of wages |
Small and Medium Enterprises (SMEs) Regime in Egypt
In Egypt, small and medium enterprises (SMEs) are classified based on several criteria, including annual turnover, number of employees, and capital size. These criteria may vary depending on the legislation and the type of business activity. The main criteria for SME classification in Egypt are as follows:
Annual Turnover
- Micro-enterprises: Typically considered businesses with an annual turnover of up to 1 million Egyptian pounds (approximately 3,140,000 Russian rubles).
- Small enterprises: Businesses with an annual turnover between 1 million and 50 million EGP (approximately 3,140,000 to 157,000,000 Russian rubles).
- Medium enterprises: Businesses with an annual turnover between 50 million and 200 million EGP (approximately 157,000,000 to 628,000,000 Russian rubles).
Number of Employees
- Micro-enterprises: Fewer than 10 employees.
- Small enterprises: Between 10 and 50 employees.
- Medium enterprises: Between 50 and 200 employees.
Capital Size
- Micro-enterprises: Capital of up to 50,000 EGP (approximately 157,000 Russian rubles).
- Small enterprises: Capital between 50,000 and 5 million EGP (approximately 157,000 to 15,700,000 Russian rubles).
- Medium enterprises: Capital between 5 million and 15 million EGP (approximately 15,700,000 to 47,100,000 Russian rubles).
Preferential Tax Regime
If a company meets the above criteria, it may be eligible to use the preferential tax regime under the following conditions:
| Type of Tax | Rates and Benefits |
|---|---|
| Corporate Tax | Reduced rates: 15-20% |
| Value Added Tax (VAT) | Exemption for businesses with a turnover of less than 500,000 EGP; standard rate 14% |
| Capital Gains Tax | 10% |
| Dividend Tax | Reduced rate to 5% instead of the standard 10% |
Free Economic Zone (FEZ) Regime
Egypt has a tax regime designed to attract investment and stimulate economic development: the Free Economic Zone (FEZ) regime.
Key Features:
- Tax Benefits:
- Exemption from corporate income tax.
- Exemption from Value Added Tax (VAT) on goods and services produced and sold within the FEZ.
- Exemption from customs duties and taxes on imported equipment, raw materials, and supplies used for production within the FEZ.
Types of Activities Eligible for FEZ:
- Manufacturing and Processing: Companies involved in the production of goods, processing raw materials, or semi-finished products.
- Export-Oriented Activities: Companies that produce goods primarily for export.
- Logistics and Storage: Companies providing logistics, transportation, and storage services.
- Information Technology and Innovation: Companies in IT, telecommunications, research, and development.
- Renewable Energy: Companies involved in the development and production of renewable energy sources.
Minimum Investment Level:
- Companies must make a minimum investment, which may vary depending on the specific FEZ and type of activity. In some zones, the minimum requirement may be $100,000 or higher, depending on the nature of the business.
Advantages of Egyptian Citizenship
One of the key advantages of Egyptian citizenship is the absence of a residency requirement. Citizenship is granted for life and can be passed on to descendants. The process of obtaining documents is relatively short, taking 6 to 9 months when using the golden visa procedure.
However, it is important to note that the Egyptian passport does not offer significant opportunities for visa-free travel. Egyptian citizenship allows visa-free access to just over 50 countries, including Iran, Jordan, and Hong Kong, and facilitates obtaining the U.S. E-2 business visa. The E-2 visa is only available to citizens of countries with which the U.S. has a relevant trade and navigation treaty. This limits the availability of the visa for citizens of many countries, as not all have such treaties with the U.S.
It is also important to note that Egypt allows dual citizenship, enabling you to retain your original citizenship and enjoy the benefits of both countries.
Advantages of Egyptian Citizenship for Those Planning to Live and Conduct Business in the Country:
- Egyptian citizens have the right to reside permanently in the country without the need to renew visas or obtain a residence permit.
- Citizens can work in any field without restrictions.
Disadvantages of the Golden Visa in Egypt
High Cost
Significant financial requirements: Obtaining a golden visa requires a substantial investment, such as purchasing high-value real estate or investing in a local business. This may be inaccessible for many potential applicants.
Non-Refundable Funds
Non-refundable contributions: Some golden visa options include non-refundable contributions to a state fund, meaning the loss of part of the invested funds even if the applicant decides not to continue participating in the program.
Limited Passport Benefits
Limited travel opportunities: The Egyptian passport does not offer extensive visa-free travel options compared to the passports of many other countries. This can be a disadvantage for those seeking global mobility.
Who Is the Golden Visa in Egypt a Good Option For?
The decision to obtain a golden visa in Egypt depends on the individual goals and circumstances of the potential applicant. Weighing all the pros and cons, the following conclusions can be made:
When it makes sense to get a golden visa:
- Investment Opportunities: If you see potential for successful investments in real estate or business in Egypt and are willing to take on the associated risks, the golden visa can be a good way to legally reside in the country and manage your business.
- Living in Egypt: If you are attracted to life in Egypt, including the climate, culture, and the opportunity to conduct business, the golden visa provides legal status and the ability to live and work freely in the country.
Conclusion
Van Rhijn and Partners can consult with you to determine which country best meets your needs, considering factors such as lifestyle, taxation, ease of doing business, and other important aspects. We offer assistance in selecting and processing a golden visa in Egypt, including investments in real estate, local business, bank deposits, and other programs mentioned in this blog. Our team ensures confidentiality and efficiency in providing these services.
Feel free to contact us for a consultation and to begin the process.
