A Free Zone is a part of the state's territory, but it is not subject to customs, import, and tax regulations applied inside the state.
Free Zones are established near seaports and airports to benefit from Egypt's geographical location.
They also enjoy privileges, incentives, and guarantees such as:
Investors may freely transfer abroad the capital and the profits of their own investment project.
Investors may freely choose the business activity and the legal structure of their investment project.
There are no constraints regarding the nationality of the shareholders except for the investment projects set up in Sinai.
Foreign investors are granted facilitations regarding residence, and foreign workers are given residence permits based on the project needs.
Equipment and machinery imported from abroad are exempted from customs duty.
A free zone project needs only its license-to-operate to deal with various agencies of the state.
A free zone project's imports and exports to and from the State are exempted from all taxes and customs duties.
A free zone project's imports and exports to and from the State are not subject to any ordinary customs procedures or importation rules applicable within the State.
A free zone project's imports from the local market are exempted from the value-added tax (VAT).
All local components of goods produced by a free zone project are exempted from customs duties if the goods have been sold in the Egyptian local market.
There are nine Public Free Zones in Egypt located in Alexandria (Amrya), Cairo (Nasr City), Port Said, Suez, Ismailia, Damietta, Shebeen ALKoum, Qeft, and Media Zone in the City of 6th October.
Written by: Ahmed Salah – Junior Associate