ITALY - EGYPT
CONVENTION BETWEEN ITALY AND EGYPT TO AVOID DOUBLE TAXATION
This Convention aims to avoid double taxation on the income of individuals and legal entities and to prevent international tax evasion. It replaces the previous convention dated March 26, 1966, which has since lapsed. It was signed on May 7, 1979, ratified, and has been in force since April 28, 1982. The duration is indefinite (termination requires 6 months’ notice).
LINK: Convention to Avoid Double Taxation
COOPERATION AGREEMENT ON CIVIL AND COMMERCIAL LAW
Signed on December 13, 1979, and still in force, this bilateral agreement governs legal relations between the two countries in civil and commercial matters, establishing principles of reciprocity and cooperation.
In particular, the agreement regulates key aspects such as:
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The recognition and enforcement of judgments in civil and commercial matters.
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Cooperation between the judicial authorities of the two States.
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The protection of reciprocal investments.
This agreement was ratified in Italy by Law No. 764 of October 24, 1980, published in the Official Gazette No. 316 of November 18, 1980. It remains in force indefinitely, with the possibility of termination by either party with six months’ notice.
AGREEMENT ON THE PROMOTION AND PROTECTION OF INVESTMENTS
The Agreement on the Promotion and Protection of Investments between Italy and Egypt was signed in Cairo on March 2, 1989, and entered into force on May 1, 1994. It was ratified in Italy by Law No. 201 of March 4, 1994. This agreement establishes favorable conditions for economic cooperation between the two countries, particularly regarding investments made by investors of one Contracting State in the territory and maritime zones of the other Contracting State.
LINK: Agreement on the Promotion and Protection of Investments
PROTOCOL FOR THE IMPLEMENTATION OF AN INTEGRATED PROGRAM TO SUPPORT EGYPTIAN SMES
Signed on May 18, 1999, this bilateral protocol between Italy and Egypt aims to foster the economic development of Egypt’s private sector, especially small and medium-sized enterprises (SMEs). It falls under the framework of economic and development cooperation, with a particular focus on technical and financial support.
The protocol entered into force upon the signing of the Financial Convention between Mediocredito Centrale and the Central Bank of Egypt. Its duration is indefinite and thus remains in force.
In 2000, the protocol was amended through an exchange of letters dated October 17, 2000, likely updating or expanding the operational modalities of the program.
The agreement includes substantial provisions for supporting Egyptian SMEs through financial instruments (such as concessional credit lines), technical assistance, professional training, and cooperation between Italian and Egyptian companies. The goal is to improve the competitiveness of Egyptian enterprises, facilitate economic relations between the two countries, and promote the transfer of skills and technology.
LINK: Protocol
In 2013, a PROTOCOL OF EXECUTION entered into force concerning the terms and conditions of the concessional loan for small enterprises.
LINK: Protocol of Execution
DEBT CONVERSION AGREEMENT WITH ANNEXES "A" AND "B"
The Debt Conversion Agreement between Italy and Egypt, signed and made effective on July 9, 2001, is a development cooperation instrument under Italy’s Debt-for-Development Swap policy. This mechanism allows the debtor country—Egypt in this case—to avoid repaying part of its debt to Italy in foreign currency, provided the equivalent amount in local currency is reinvested in development projects.
Initially intended to last six years, the agreement has been extended and updated multiple times through exchanges of letters—formal instruments used to amend existing agreements without signing new ones.
Exchanges of letters occurred in 2005, 2007, and 2008, modifying or extending the implementation of the agreement, indicating that its execution continued well beyond the initial expiration date.
LINK: Agreement
FRAMEWORK AGREEMENT ON DEVELOPMENT COOPERATION
The Framework Agreement on Development Cooperation between the Republic of Italy and the Arab Republic of Egypt entered into force on June 22, 2010. It serves as the legal reference for regulating and promoting bilateral development cooperation between the Parties. The agreement supports Egypt’s economic and social growth processes by implementing initiatives in priority sectors such as health, education, the environment, light infrastructure, strengthening the private sector, and particularly supporting SMEs.
The Agreement provides a general legal framework for the Parties to develop projects and programs through tools such as concessional financing, grants, technical assistance, vocational training, and knowledge transfer, also via the conclusion of subsequent executive protocols, technical memoranda, or specific financial agreements that detail mutual commitments.
According to Article XI, the Agreement initially lasts five years and is automatically renewed for additional five-year periods unless formally terminated by either Party with at least twelve months' notice prior to the end of the current term. In the absence of such notice, the Agreement is considered automatically renewed.
As of its entry into force, this Agreement replaced the previous bilateral Agreement dated April 29, 1975, except for scientific cooperation activities, which continue under their respective provisions.
No formal notices of termination have been issued to date; thus, under the automatic renewal clause of Article XI, the Agreement remains in force and has been extended to cover the period 2020–2025.
LINK: Framework Agreement
AGREEMENT ON DEBT CONVERSION INTO DEVELOPMENT PROGRAMS, WITH ANNEX
The Agreement on Debt Conversion into Development Programs between the Republic of Italy and the Arab Republic of Egypt entered into force on August 15, 2012, upon receipt of the second of two formal notifications, as per Article 10 of the agreement. The initial duration is eleven years, with the possibility of extension as provided in Article 10.2.
This instrument fits within the broader scope of bilateral economic and technical cooperation, establishing how Italy will convert part of its credit towards Egypt into financing for sustainable development projects carried out in Egypt. The converted debt is not repaid to Italy but is reinvested locally in national currency for initiatives agreed upon by both Parties, in priority sectors such as education, health, the environment, enterprise development, institutional strengthening, and light infrastructure.
The agreement includes a technical annex detailing project eligibility criteria, fund management procedures, and processes for project selection, monitoring, and evaluation. It establishes a joint Italo-Egyptian committee to oversee implementation and approve the projects to be financed.
LINK: Agreement
AGREEMENT ON DEBT CONVERSION INTO DEVELOPMENT PROGRAMS, WITH ANNEX
The Agreement on Debt Conversion into Development Programs, signed between the Italian Republic and the Arab Republic of Egypt, entered into force on August 15, 2012. The agreement establishes a mechanism for converting a portion of the Egyptian debt into financing for sustainable development projects, implemented mainly in Egypt. The agreement has an initial duration of eleven years. However, as provided under Article 10.2, it is possible to extend the agreement’s duration, if necessary, through a specific contractual amendment. The agreement thus provides for the possibility of renewal for an additional period aimed at the completion of projects financed with the funds resulting from the debt conversion.
The agreement seeks to reduce Egypt’s debt burden toward Italy, while allowing for the conversion of the debt into development projects that address Egypt’s economic and social needs. The funds released through the debt conversion are used to finance projects in key sectors such as education, healthcare, infrastructure, environmental management, and support for small and medium-sized enterprises (SMEs). This mechanism is part of the broader framework of bilateral cooperation and the promotion of sustainable development.
The agreement of August 15, 2012, is linked to previous debt conversion agreements already signed between the two nations, including:
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The Debt Conversion Agreement signed in Rome on February 19, 2001;
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The Debt Conversion Agreement signed in Cairo on June 3, 2007.
LINK: Agreement
Furthermore, on October 9, 2020, THE AMENDATORY AGREEMENT BY EXCHANGE OF LETTERS TO THE DEBT CONVERSION AGREEMENT OF MAY 10, 2012, between the Italian Republic and the Arab Republic of Egypt entered into force.
This amending agreement modifies and supplements the provisions previously established in the May 10, 2012 Debt Conversion Agreement.
LINK: Amendment
Finally, on July 3, 2023, the agreement was extended through an AGREEMENT BY EXCHANGE OF LETTERS FOR THE EXTENSION OF THE DEBT CONVERSION AGREEMENT, SIGNED IN CAIRO ON MAY 10, 2012.
The amended agreement provides that its validity is extended until December 31, 2024. The extension is aimed at ensuring that the funds allocated for specific projects and activities are used optimally. If the funds are not fully spent by the expiration date, a further extension of the agreement may be agreed upon in order to ensure the completion of the financed projects.
LINK: Extension
AGREEMENT ON THE GRANTING OF A CONCESSIONAL LOAN FOR THE PROJECT “SUPPORT TO THE DEVELOPMENT OF THE PRIVATE SECTOR IN EGYPT,” WITH ANNEX
The Agreement on the granting of a concessional loan for the project “Support to the Development of the Private Sector in Egypt” between the Italian Republic and the Arab Republic of Egypt entered into force on July 9, 2019, upon receipt of the second of the two notifications, as stipulated in Article 15 of the agreement.
The concessional loan is intended to finance a project aimed at supporting the development of the private sector in Egypt, with the objective of strengthening Egyptian private enterprises. The project focuses on promoting SME competitiveness, innovation, and sustainable growth, facilitating access to credit, training, and technical assistance for Egyptian businesses.
The agreement has a duration equal to that of the concessional loan, as defined in Article 15. The overall duration of the loan is determined based on specific repayment terms, which include favorable conditions such as low interest rates and long repayment periods, in order to support Egypt’s economic growth and the strengthening of its productive capacity.
This type of agreement is significant for the strengthening of economic ties between Italy and Egypt, as it allows Italian companies to actively participate in the projects and initiatives related to financing and the development of the Egyptian private sector. Although it is not a direct trade treaty, it facilitates the expansion of business and investment opportunities for Italian companies interested in entering or consolidating their presence in the Egyptian market.