In Egypt, property owners are required to pay an annual property tax, also known as “ground rent.” The tax is based on the value of the property and is typically between 0.1% and 0.5% of the property’s value. The tax must be paid to the local government office responsible for collecting taxes.
Capital Gains Tax (CGT)
When a property is sold in Egypt, the seller is subject to a capital gains tax (CGT) on the profit made from the sale. The CGT rate is 10% of the profit made from the sale.
Inheritance Tax
In Egypt, there is no inheritance tax on property. However, if the property is inherited by more than one person, each person is responsible for paying the property tax on their share of the property.
Gift Tax
There is no gift tax on property in Egypt.
Tax on Property Income
If you rent out a property in Egypt, you are required to pay a tax on the rental income. The tax rate is 20% of the rental income.
Tax Advantages
Buying a house in Egypt may have some tax advantages. For example, if you purchase a property and live in it for more than five years, you may be able to claim a tax deduction on the interest paid on your mortgage. Additionally, if you invest in a property that is designated as a tourist area, you may be eligible for a tax reduction or exemption.