Egypt Free Zones Tax Incentives and Customs Exemptions

Overview

Egypt's Free Zones offer comprehensive tax and customs incentives for export-oriented businesses, making Egypt an attractive manufacturing and trade hub. Both public and private free zones provide generous exemptions from customs duties, VAT, income tax, and property tax. As of 2026, nine public free zones operate at 95% occupancy, with four new zones approved to begin operations by the end of 2026.

Tax Exemptions and Benefits

Capital assets and production requisites are exempted from customs duties and value added taxes. All imports and exports are exempted from customs duties and taxes. Projects and their profits are not subject to taxes and customs laws during the period of practicing the activity. This includes exemptions from income tax, property tax, VAT, and withholding taxes, providing comprehensive tax relief for qualifying businesses.

Regulatory Framework

Free Zones operate under Investment Law No. 72 of 2017, enhanced by the 2023 amendment called Law No. 160. The 2023 amendment allows energy-intensive projects in fields like petroleum, fertilizers, iron and steel, and natural gas to qualify for Free Zone benefits. Additional SME tax incentives were introduced through Laws No. 6 and No. 7 of 2025, bringing amendments and tax facilities to enhance the investment climate.

Current Infrastructure and Expansion

Nine public free zones currently operate with 95% occupancy across Egypt's strategic locations. The government approved four new zones to meet growing demand, scheduled to begin operations by the end of 2026. This expansion supports Egypt's goal to reach $140 billion in exports by 2030, directing investment toward global markets. Free Zones serve as manufacturing and export platforms accessing European, Middle Eastern, and African markets.

Eligibility and Application

Applications are submitted to the General Authority for Investment and Free Zones (GAFI). Both foreign and domestic investors can establish operations in Free Zones. Eligible activities include manufacturing for export, warehousing, trading, assembly, packaging, and services supporting export activities. GAFI evaluates applications based on export orientation, investment size, job creation, and alignment with Egypt's strategic economic goals.

Contact Information

Visit www.gafi.gov.eg for Free Zone applications and zone locations. GAFI provides guidance on establishing operations, navigating regulatory requirements, and accessing Free Zone benefits under Egyptian investment law.