Setting Up & Manufacturing in Egypt: 2026 Cost Guide

What it costs to set up in Egypt

Set your plan to see itemized setup and running costs, a corporate-tax projection, and the incentives you may qualify for. Every figure links to its source.

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Entity type

Activity

Year-1 headcount: 10

Expat / local split: 3 / 7

Office type

City

Timeline

Your country

Optional: estimate corporate tax

Estimated annual revenue (EGP)

Net profit margin: 12%

The 10% foreign-workforce cap (often stated as 1 foreigner per 10 Egyptians) — foreign employees can't exceed 10% of your staff. Free-zone companies may hire up to 25% foreign staff (vs 10% mainland). Foreign technical specialists must be paired with two Egyptian employees. Foreigners' wages may not exceed 20% of total payroll. Plan your headcount around this from day one.

Egypt's Labour Law No. 14 of 2025 (effective 1 Sept 2025) replaced the 2003 law: mandatory annual raises of at least 3% of insured wage (min EGP 250/mo), 120-day maternity leave, dismissals require labour-court approval, and a 10% profit-sharing obligation applies. Budget accordingly.

Your itemized entry cost

Show ≈ in

One-time setup: EGP 5,000 – 25,000≈ USD 102 – 510
Annual recurring: EGP 462,653 – 1,036,653≈ USD 9,442 – 21,156
5-year total: EGP 2,318,265 – 5,208,265≈ USD 47,312 – 106,291

Where the 5-year cost goes

Social insurance — Egyptian staff35%
Small office (Cairo / 6th of October)33%
Foreigner work permit22%
Health insurance — employer7%
Emergency / training fund — employer2%
GAFI incorporation (LLC, all-in)0%
Other0%

↓ Incentives you may qualify for can lower this — see the impact below

Indicative planning figures, not a quote. Foreign-currency amounts use approximate FX. Items marked “verifying” are shown as ranges until confirmed against the official source.

Add an estimated annual revenue in the calculator to project your — and see how tax incentives like or change it.

Free money & savings you may be able to grab

These are the perks Egypt offers to win your business — cheaper financing, tax holidays, duty-free exports, guaranteed demand. Most don’t show up in the setup fees above, so your real cost of doing business can be a lot lower. Each card says plainly what you get and how to capture it. You may qualify depending on your activity and investment.

SCZone customs + tax packageCustoms dutiesCorporate tax

A bundled customs-and-tax package that makes export manufacturing much cheaper.

How to capture it: Locate your plant inside the Suez Canal Economic Zone (SCZone).

QIZ duty-free US accessCustoms duties

Ship to the United States with zero import duty.

How to capture it: Qualify your product under QIZ rules, which include a minimum Israeli-input content requirement.

EU association agreementCustoms duties

Sell into the European Union largely duty-free.

How to capture it: Meet the EU association agreement's rules-of-origin for your goods.

Golden License fast-trackUpfront capitalDemand / procurement

Get one approval covering incorporation, land, and permits — skipping the usual agency maze.

How to capture it: Apply for the Golden License if your project is strategic or export-focused.

SCZone customs + tax package for export manufacturing
QIZ duty-free access to US markets (subject to Israeli-input rules — stated plainly)
EU association agreement + Golden License fast-track for strategic projects

Labor-cost advantage plus tri-market (US / EU / Africa) export access.

Get your full entry assessment

Costs, incentives & matched specialists for Egypt — free.

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The quick takeaway

Egypt's edge is export manufacturing: low labor costs plus duty-free routes to the US (QIZ) and EU. Domestic-market entry is riskier — factor currency volatility and the 1-foreigner-to-9-Egyptians hiring cap.

Egypt at a glance

Foreign ownership

100% for most sectors

Minimum capital

Low (incorporation ~0.25% of capital, capped)

Corporate tax

22.5%

VAT

14%

Typical setup time

~3–6 weeks

Best for

Export manufacturing (US/EU market access)

Is Egypt right for you?

The plain-language case for and against — before you get into the numbers.

Why set up in Egypt

Low labor costs — a strong base for manufacturing.
Duty-free export routes into the US (QIZ) and the EU.
Own 100% of your company in most sectors.
A Golden License can fast-track strategic projects through a single approval.
A large, young workforce for IT, outsourcing, and industry.

What to weigh up

Currency volatility — the pound can lose value, cutting into repatriated profits.
You can hire only 1 foreigner for every 9 Egyptians (a 10% cap).
Bureaucracy can be slower and less predictable than in the Gulf.
Better suited to exporting than to selling in the domestic market.

Your path to launch

The simplified route from decision to open for business. Typical end-to-end: ~3–6 weeks. Specialists we match you with can run most of it for you.

1
Incorporate through GAFI
1–2 weeks
Egypt's investment authority handles company formation, including notarization.
2
Register commercially & for tax
~1 week
Commercial registry entry and tax file setup.
3
Open a bank account & inject capital
1–2 weeks
Deposit your capital and set up for local operations.
4
Arrange work permits
2–4 weeks
For foreign staff — plan around the 1-to-9 foreigner-to-Egyptian cap.
5
Register for social insurance
~1 week
Employer registration for your Egyptian employees.
6
Secure premises or SCZone land
1–3 weeks
Office, or industrial land inside the SCZone for the export package.

How the tax compares to the US, UK & Germany

If you're coming from — or choosing against — a major Western market, here's how the headline taxes stack up.

The bottom line vs. home

At 22.5%, Egypt's corporate tax is just under the UK's 25% and below Germany's ~30%, while labor costs are a fraction of all three. The trade-off is currency risk and slower bureaucracy.

Corporate tax rate, side by side

Egypt

22.5%

United States

25.7%

United Kingdom

25%

Germany

30%

Egypt shows its standard rate; incentives like SCZone can take it to 0%.

Country		/ sales tax	Employer social cost
Egypt (here)	22.5%	14%	~18.75% of Egyptian payroll (social insurance, capped)
United States	21% federal (~25.7% with state)	No VAT; state sales tax 0–~10%	~7.65% (FICA) + unemployment
United Kingdom	25% (19% on profits under £50k)	20%	~15% (employer National Insurance)
Germany	~30% combined	19%	~21% (employer share)

Headline rates for orientation only (approximate, 2026). Effective tax depends on structure, deductions, treaties, and — for the US and Germany — state/municipal rates. Not tax advice.

Free-trade agreements & market access

Where you can sell duty-free from Egypt. Deals with the US, UK, and EU matter most if that's where your customers are.

United StatesIn force since 2005

QIZ (Qualifying Industrial Zones) protocol

Duty-free, quota-free access to the US market for goods made in designated zones — requires ~10.5% Israeli-input content.

European UnionIn force since 2004

Egypt–EU Association Agreement

Tariff-free access to the EU for industrial goods — Egypt's largest trade relationship.

United KingdomIn force since 2021

UK–Egypt Association Agreement

Tariff-free access to the UK — a post-Brexit rollover of the EU deal.

Arab LeagueIn force

Greater Arab Free Trade Area (GAFTA)

Zero tariffs across ~17 Arab states.

East & Southern AfricaIn force

COMESA

Duty-free access across 20+ African markets with a certificate of origin.

African UnionIn force since 2019

AfCFTA (African Continental FTA)

Progressive tariff-free access to a continent-wide market.

Morocco, Tunisia, JordanIn force since 2006

Agadir Agreement

Duty-free Arab-Mediterranean trade with cumulative rules of origin that help qualify for EU preferences.

EFTAIn force since 2007

EFTA–Egypt FTA

Duty-free access for Egyptian industrial exports to Switzerland, Norway, Iceland and Liechtenstein.

MERCOSURIn force since 2017

Egypt–MERCOSUR FTA

Tariff cuts on 90%+ of trade with Brazil, Argentina, Uruguay and Paraguay.

TurkeyIn force since 2007

Egypt–Turkey FTA

Customs-duty exemption on Egyptian industrial exports.

Watch-outs before you commit

The non-negotiables that shape your plan — ownership limits, hiring quotas, and tax notes specific to this country.

The 10% foreign-workforce cap (often stated as 1 foreigner per 10 Egyptians) — foreign employees can't exceed 10% of your staff. Free-zone companies may hire up to 25% foreign staff (vs 10% mainland). Foreign technical specialists must be paired with two Egyptian employees. Foreigners' wages may not exceed 20% of total payroll. Plan your headcount around this from day one.
Egypt's Labour Law No. 14 of 2025 (effective 1 Sept 2025) replaced the 2003 law: mandatory annual raises of at least 3% of insured wage (min EGP 250/mo), 120-day maternity leave, dismissals require labour-court approval, and a 10% profit-sharing obligation applies. Budget accordingly.
Corporate income tax is 22.5%. Factor foreign-exchange and profit-repatriation risk into your model — the Egyptian pound has been volatile.
Golden License: qualifying strategic and export projects can obtain a single approval covering incorporation, land, and operating permits — bypassing the standard multi-agency route.

Jargon buster

Every acronym on this page in plain English.

GAFI: General Authority for Investment and Free Zones — Egypt's investment authority, which incorporates companies.
QIZ: Qualifying Industrial Zone — an arrangement giving Egyptian-made goods duty-free access to the US market, subject to minimum Israeli-input content rules.
SCZone: Suez Canal Economic Zone — an Egyptian SEZ that bundles customs and tax relief for export manufacturing.
ITIDA: Information Technology Industry Development Agency — Egypt's IT authority, which offers incentives for offshoring and exported IT services.
Golden License: A single Egyptian government approval covering incorporation, land, and operating permits for qualifying strategic or export projects.
IDA: Industrial Development Authority — the Egyptian body that allocates industrial land.
CIT: Corporate Income Tax — tax charged on a company's taxable profit.
VAT: Value Added Tax — a consumption tax added to most goods and services. Registration becomes mandatory above a revenue threshold.
SEZ: Special Economic Zone — a designated area with its own tax, customs, and ownership rules, usually more generous than the mainland to attract investment.
EOR: Employer of Record — a third party that legally employs staff on your behalf in a country, so you can hire before setting up your own entity.
Usufruct: The right to use and profit from land or property for a long fixed term without owning it outright.

How we calculate this

Every figure is drawn from an official or named source and carries a last-verified date. Items still being confirmed are shown as ranges, not single numbers. Salary-based costs assume EGP 20,000/mo for local staff and EGP 45,000/mo for expat staff (editable in a full assessment).

Line item	Confidence	Verified	Source
GAFI incorporation (LLC, all-in)	estimate	2026-07-06	Link
Commercial registry + operating fees	estimate	2026-07-06	Link
Foreigner work permit	estimate	2026-07-06	Link
Social insurance — Egyptian staff	verified	2026-07-06	Link
Health insurance — employer	estimate	2026-07-06	Link
Emergency / training fund — employer	estimate	2026-07-06	Link
Flexi desk (Cairo)	estimate	2026-07-06	Link
Small office (Cairo / 6th of October)	estimate	2026-07-06	Link
Industrial land (SCZone / IDA)	estimate	2026-07-06	Link

Verification log

Egypt social-insurance cap (EGP 16,700, Jan 2026) verified via PwC/BDO; applied as a per-employee wage cap in the calculator.
Work-permit regime updated to Ministerial Decree 279/2025 under Labour Law 14/2025 (fees capped at EGP 100,000); social/labour changes verified 2026-07-06.

Disclosure: Free for you — service providers pay us for introductions you request. We are not lawyers or accountants; treat these figures as planning estimates, not legal or tax advice.

Frequently asked questions — Egypt

How many foreign employees can I hire in Egypt?+

Egyptian labor law caps foreign employees at roughly 10% of your workforce — the 1-foreigner-to-9-Egyptians rule. Exemptions exist for specialist roles the local market can't fill, but you should design your headcount around this cap from the start.

What does it cost to incorporate a company in Egypt?+

A standard LLC through GAFI runs roughly EGP 5,000–25,000 all-in including notarization, with the incorporation fee based on ~0.25% of capital (capped). Office, permits, and social insurance are the larger recurring costs.

Why manufacture in Egypt rather than just sell there?+

Egypt's advantage is export access: the SCZone customs-and-tax package, QIZ duty-free entry to the US market (subject to Israeli-input rules), and the EU association agreement. Combined with low labor costs, this favors export manufacturing over pure domestic-market plays.

What is the corporate tax rate in Egypt?+

The standard corporate income tax rate is 22.5%. You should also budget for foreign-exchange and profit-repatriation risk given the pound's volatility.

What is the Golden License?+

The Golden License is a single government approval for qualifying strategic or export projects that covers incorporation, land allocation, and operating permits at once — replacing the standard multi-agency approval chain.