Crypto Taxes in Egypt: The Complete 2026 Guide

Crypto Taxes in Egypt: The Complete 2026 Guide

 

Quick Summary

Egypt maintains a strict regulatory stance on cryptocurrency. Cryptoassets are not recognised as legal tender, and most crypto-related activities are prohibited under banking and financial laws. As a result, Egypt does not have a dedicated cryptocurrency tax regime. However, from a tax perspective, income—regardless of source—may still fall under existing income tax laws administered by the Egyptian Tax Authority (ETA). This creates a situation where crypto activity is largely illegal, yet any realised or unexplained income may still be taxable if identified.

 

How Egypt Classifies Cryptocurrency for Tax Purposes

 

Crypto as an Illegal / Unauthorised Digital Asset

Cryptocurrencies are not recognised as money, securities, or lawful digital assets in Egypt. The Central Bank of Egypt (CBE) has explicitly prohibited issuing, trading, promoting, or operating crypto platforms without a license, which is currently unavailable in practice.

 

Key Legal Framework

Egypt’s position on crypto and taxation is derived from:

• Central Bank and Banking Sector Law No. 194 of 2020 – prohibits issuance and trading of virtual currencies without CBE approval
• CBE official statements – confirm illegality of crypto activities
• Income Tax Law No. 91 of 2005 – taxes income regardless of source
• Egyptian Tax Authority (ETA) enforcement practices

 

Taxable Crypto Events in Egypt (Theoretical)

 

1. Selling Cryptocurrency for Fiat

Although selling crypto is illegal in Egypt, any income or gain discovered by tax authorities may still be treated as taxable income. Egyptian tax law focuses on realised economic benefit rather than the legality of the underlying activity.

 

2. Trading Crypto for Crypto

Crypto-to-crypto transactions are not legally permitted. If such activity results in identifiable gains, authorities may classify them as unexplained or other taxable income.

 

3. Receiving Crypto as Income

Crypto received through:

• Freelancing or remote work
• Online services
• Mining or rewards

may be considered taxable income if converted, remitted, or otherwise used economically within Egypt.

 

4. Foreign-Sourced Crypto Income

Egyptian residents are generally taxed on income sourced in Egypt. However, foreign income—if remitted to Egypt or linked to local economic use—may be subject to scrutiny.

 

Crypto Tax Rates in Egypt

 

Individual Income Tax

If crypto-related income is assessed, it may be taxed under Egypt’s progressive individual income tax rates, which range from approximately 2.5% to 25%, depending on annual income.

 

Corporate Income Tax

Companies generating taxable income linked to crypto activity—if identified—may be subject to corporate income tax, generally at a rate of 22.5%.

 

No Dedicated Capital Gains Tax for Crypto

Egypt does not have a crypto-specific capital gains tax framework. Gains are typically taxed as income if assessed.

 

Reporting Requirements for Crypto in Egypt

 

Annual Income Tax Returns

Taxpayers are required to declare all taxable income in their annual tax returns. Failure to disclose income—regardless of legality—may result in penalties.

 

Unexplained Wealth & Income Reviews

The ETA has authority to investigate unexplained increases in wealth, including funds potentially linked to digital or foreign sources.

 

Record-Keeping Expectations

In enforcement cases, authorities may request:

• Bank statements
• Foreign remittance records
• Evidence of income sources
• Transaction histories where available

 

How Losses on Crypto Are Treated

 

No Recognised Loss Treatment

Because crypto activity is illegal, losses are not recognised for tax deduction purposes. Loss offsets or carryforwards are not available.

 

Special Cases: NFTs, Airdrops & DeFi

 

NFT Transactions

NFTs are not formally regulated in Egypt. Any income derived from NFT sales—if detected—may be treated as taxable income, subject to legality concerns.

 

Airdrops

Airdropped tokens may be considered taxable income if they have measurable value and are converted or utilised economically.

 

DeFi Activity

DeFi participation is prohibited. Any income identified from DeFi protocols may be classified as illegal income and taxed accordingly.

 

How to Prepare for Tax Compliance in Egypt

 

Understanding Legal Risk

Crypto activity in Egypt carries significant regulatory and potential criminal risk. Tax compliance does not legalise prohibited activity.

 

Income Transparency

Egyptian tax enforcement focuses on unexplained income and wealth. Any substantial financial inflows may be scrutinised regardless of source.

 

Penalties for Non-Compliance

 

Penalties may include back taxes, fines, interest, and potential criminal liability under banking, anti-money laundering, or tax laws. Enforcement is discretionary and case-specific.

 

Conclusion

 

Egypt remains a highly restrictive jurisdiction for cryptocurrency, with clear prohibitions enforced by the Central Bank. While there is no dedicated crypto tax regime, income derived from crypto may still be taxable under general income tax laws if identified. Individuals should exercise extreme caution and seek professional advice due to overlapping legal and tax risks.

 

References / Sources

 

• Andersen Egypt – Legality of Cryptocurrency in Egypt
• Lexology – Cryptocurrency Regulation in Egypt
• Central Bank of Egypt – Virtual Currencies Notice
• Egyptian Tax Authority (ETA)