Egypt – Property Taxes

What taxes and fees apply when buying a property in Egypt?

Purchasing property in Egypt involves a number of one-time costs payable at the point of transfer. In contrast to countries like the UK — where stamp duty land tax can climb to 12% on higher-value homes — or Canada with its provincial land transfer taxes, Egypt’s total buyer-side acquisition costs are comparatively reasonable, generally landing between 3% and 6% of the purchase price.

Registration fees: The formal registration of real estate ownership in Egypt is administered through the Real Estate Publicity Department (REPD), with registration fees typically ranging from 0.5% to 3% of the property’s declared value. Always check current fee schedules directly with the REPD or the Real Estate Taxation Authority before finalising any purchase.

Stamp duty: Stamp duty in Cairo is commonly set at 0.5% of the property’s value and is levied on the sale contract documentation. The precise division of this cost between buyer and seller is frequently a matter of negotiation within the purchase agreement.

Real Estate Transaction Tax (RETT): The Real Estate Transaction Tax is a one-off levy imposed upon the transfer of property ownership and is ordinarily the seller’s obligation. It is calculated at 2.5% of the property’s officially assessed value or the actual transaction price, whichever proves greater. Buyers should still be aware of this tax since it can influence negotiations. It is important to note that Egyptian law expressly prohibits shifting this tax liability onto the buyer: Article 3 of Law No. 196 of 2008 clearly designates the seller as the party responsible for the real estate disposal tax, and the law does not permit contractually reassigning that burden.

Agent commission: Real estate broker commissions in Egypt are customarily around 2% of the total transaction value. This fee may be divided between the two parties or, in many cases, charged entirely to the buyer. The terms of any commission arrangement should always be confirmed in writing before engaging a broker.

Legal and notary fees: The sale contract must be authenticated before a public notary and subsequently registered at the local Real Estate Registry — known locally as “Tabu” — within 10 days of signing. Notary and legal fees differ according to the lawyer engaged and the complexity of the transaction; these should be factored into your overall acquisition budget.

VAT on associated services: Although real estate sales are generally exempt from value added tax, ancillary services connected to property — such as architectural work, construction, interior finishing, and legal consultancy — are commonly subject to 14% VAT. Always confirm with each service provider whether VAT is incorporated in their quoted price.

Step-by-step: how to purchase property in Egypt

1. Agree terms and sign a preliminary contract. Negotiate the purchase price and execute a reservation or preliminary sale agreement. Any agreed deposit should be paid at this stage.
2. Conduct due diligence. Engage a local solicitor to carry out title searches, confirm the property is unencumbered, and verify that all planning and building consents are in order. This is particularly important for older properties in established urban neighbourhoods.
3. Authenticate the sale contract before a notary. The definitive sale contract must be formally executed before a public notary.
4. Confirm payment of Real Estate Transaction Tax. Satisfy yourself that the seller has paid or is committed to paying the 2.5% RETT to the Egyptian Tax Authority prior to registration.
5. Pay registration fees. Settle the applicable registration fees (0.5–3% of declared value) and stamp duty (around 0.5%) with the relevant authority.
6. Register with the Real Estate Publicity Department (REPD). Present all required documentation to the REPD — known locally as “Tabu” — to formally vest title in your name. Registration must take place within 10 days of executing the contract.
7. Register with the Real Estate Taxation Authority. Once ownership has been legally established, register with the RTA and submit any required annual real estate tax declarations.

Worked example: approximate total buyer costs on a typical purchase

Consider a residential apartment in Cairo priced at EGP 3,000,000 (approximately USD 60,000 at 2025 exchange rates). All figures below are approximate and reflect 2025 conditions — verify current fees with official sources prior to transacting.

The seller would separately bear the 2.5% RETT — amounting to EGP 75,000 in this illustration. The typical aggregate of fees and taxes for a standard residential property purchase in Cairo in 2026 falls within the range of 3% to 6% of the purchase price. Always validate figures with a locally qualified lawyer and the Egyptian Tax Authority.

What taxes and fees apply when selling a property in Egypt?

In Egypt, the principal financial obligations of a property transaction rest with the seller rather than the buyer. The dominant cost is the Real Estate Transaction Tax, which the law assigns exclusively to the seller.

Real Estate Transaction Tax (2.5%): The RETT is charged at 2.5% of the official assessed value or the actual sale price, whichever is the greater figure, and it is ordinarily discharged by the seller. This is broadly analogous to transfer taxes that sellers encounter in parts of the United States or Canada, though at a substantially lower rate than most comparable markets.

Penalties for late payment: Failing to declare a property transaction now attracts a fine of up to 40% of the outstanding tax liability. Sellers should ensure the RETT is settled promptly via the Egyptian Tax Authority’s online portal, as all transaction taxes are required to be paid electronically.

Agent fees: Broker commissions of approximately 2% are standard and are commonly negotiated between the parties. Confirm commission arrangements in writing before committing to work with any agent, to avoid disputes arising later.

Legal costs: Sellers will typically incur their own legal expenses covering contract drafting, notarisation, and the discharge of any mortgage or charge registered against the property. These costs vary by solicitor but should be included in your financial planning.

No separate capital gains tax applies to individual property sales (see the next section), which means the 2.5% transaction tax constitutes the primary tax burden for most sellers. Always verify the latest requirements with the Egyptian Tax Authority.

Is capital gains tax payable on property sales in Egypt?

This is one of the most notable features of Egypt’s property tax framework for individual investors. In many countries, capital gains tax is charged on the profit arising from a property sale — sometimes at rates of 20–30% or higher — but Egypt adopts a fundamentally different approach for individual sellers.

As of early 2026, the majority of residential property sales by individuals in Cairo are subject to the 2.5% disposal/transaction tax levied on the gross sale value, rather than a conventional capital gains calculation based on profit. In practice, this structure delivers meaningful advantages to individual property investors, especially given the generous exemptions available for lower-value properties and the complete absence of capital gains tax on personal real estate disposals.

The 2.5% RETT is applied to the full sale value rather than the gain alone — meaning there is no need to calculate acquisition cost against proceeds, no indexation adjustments, and no taper relief to consider. For a seller who has retained a property for many years and realised a substantial profit, this results in a far lower effective tax burden than the CGT regimes operating in countries such as France (up to 36.2%), Germany (up to approximately 26%), or Australia (where up to half the marginal income tax rate may apply to the gain).

Non-residents: Foreign nationals disposing of property in Cairo are not subject to any additional tax rate; the same 2.5% disposal tax applies irrespective of the seller’s nationality, though overseas sellers may encounter elevated legal and documentation costs in connection with the transaction.

Practical example: An investor acquired an apartment in 2018 for EGP 800,000 and sells it in 2025 for EGP 3,000,000 — a nominal gain of EGP 2,200,000. Under Egypt’s system, the tax liability is simply 2.5% × EGP 3,000,000 = EGP 75,000. Under a CGT regime such as the United Kingdom’s, the chargeable gain itself (after applicable allowances) would be taxed, potentially yielding a far larger bill. Always seek advice from a locally qualified tax professional for your individual situation, as the legislation is subject to change.

Important note: Egypt has been actively debating various real estate tax reforms. Keep abreast of announcements from the Egyptian Tax Authority and the Ministry of Finance regarding any legislative developments that could alter the CGT position.

Are there annual property taxes in Egypt?

Egypt does levy a recurring annual real estate tax — known locally as Awayed (dues). However, owing to generous exemption thresholds, the overwhelming majority of residential property owners across the country pay very little or nothing whatsoever.

Legal basis: The framework governing property tax in Egypt is principally established by Law No. 196 of 2008, titled “The Real Estate Tax Law,” along with its subsequent amendments. The law has been revised on several occasions, most recently through significant changes enacted in January 2026.

Who is liable: The real estate tax is imposed on the individual or entity recorded as the legal owner of the property. It applies to all built properties situated on Egyptian land that are not otherwise exempt — including properties that are rented out or occupied by the owner, whether fully completed and occupied, fully completed but vacant, or only partially in use.

How the tax is calculated: Article 12 of Law No. 196 of 2008 requires the owner to pay a tax equal to 10% of the annual rental value, after a deduction of 30% for residential units and 32% for non-residential units, reflecting allowable maintenance costs. The annual rental value (ARV) is established by government assessors and does not necessarily correspond to actual market rents. The ARV serves as the foundational basis for computing property tax in Egypt. Under Law No. 196 of 2008, residential properties with an ARV of EGP 24,000 or less are fully exempt from real estate tax, while non-residential properties must have an ARV of EGP 1,200 or less to qualify for exemption.

Significant 2026 amendments: Following the most recent legislative amendments to the Real Estate Tax Law, only approximately 2 million property units out of an estimated 55 million nationwide will be subject to residential property tax. Among the key changes is the elevation of the residential tax exemption threshold to a net annual rental value of EGP 100,000, which corresponds to an estimated market value of around EGP 8 million. This represents a substantial increase over the previous limit and means that the vast majority of homeowners will have no annual real estate tax obligation at all. Always confirm the current threshold directly with the Real Estate Taxation Authority.

Worked example (properties above the exemption threshold): For a higher-value property with an assessed ARV of EGP 120,000 per year: deducting the 30% maintenance allowance yields a taxable base of EGP 84,000. At the 10% rate, the annual tax liability would be EGP 8,400. This is structurally comparable to municipal rates in many European jurisdictions, though effective amounts in Egypt tend to be considerably lower in absolute terms.

The real estate tax law also takes into account a range of variables capable of influencing a property’s value, such as location, the value of comparable buildings, and the economic character of the surrounding district. Assessments are to be updated every five years. Property owners may contest a rental value determination — any taxpayer has 60 days from the publication date in the Official Journal to lodge an appeal.

How is rental income from property taxed in Egypt?

Rental income derived from Egyptian property is subject to income tax, whether the landlord is resident in Egypt or based overseas. The tax framework applies to both long-term tenancies and short-term lets, though regulatory enforcement around short-term rental platforms continues to evolve.

Tax rate on rental income: In Egypt, rental income is generally treated as part of the individual’s total income and taxed accordingly under the income tax law. Egypt operates a progressive personal income tax system, with rates rising to as high as 27.5% on annual income exceeding EGP 400,000 (as of 2024 — verify current brackets with the Egyptian Tax Authority). For landlords whose sole Egyptian-source income is rental receipts, the effective rate may be considerably lower.

Deductible expenses: Landlords are generally entitled to deduct expenditure directly attributable to the property, including maintenance, repairs, and property management charges. The annual real estate tax (Awayed) may also be deductible. Thorough records of all outgoings should be maintained, as the Egyptian Tax Authority may request supporting documentation.

Annual real estate tax and rental income: It is important to recognise that the annual property tax (Awayed) and the income tax arising on rental receipts are distinct obligations. A landlord letting out a property must satisfy both requirements — paying the annual real estate tax on the basis of ownership and declaring rental receipts within their annual income tax return.

Registration and reporting obligations: Landlords are obliged to register tenancy agreements with the tax authority and to report rental income each year. Failure to register lease contracts may result in financial penalties. The Egyptian Tax Authority administers these obligations, and property owners must submit declarations and settle their liability annually. Non-compliance can lead to fines and legal proceedings.

Short-term lets (e.g. Airbnb): Income from short-term rental activity through platforms such as Airbnb is governed by the same income tax rules as conventional long-term lettings. However, short-term rental operations may attract additional scrutiny as a commercial undertaking, potentially engaging commercial licensing requirements or tourism sector regulations. This area of Egyptian law is still developing, and anyone operating short-term lets should obtain specific legal advice from a locally qualified Egyptian lawyer to ensure full regulatory compliance.

Non-residents: Overseas landlords earning rental income from property situated in Egypt are liable to Egyptian income tax on those earnings. Egypt has concluded double taxation treaties with a number of countries that may reduce the overall tax burden — it is worth establishing whether a relevant treaty applies to your situation and confirming this with the Egyptian Tax Authority or a suitably qualified adviser.

Does inheritance tax apply to property in Egypt?

The position here is straightforwardly positive for property owners and their beneficiaries: Egypt does not levy any inheritance, estate, or gift tax. Unlike the United Kingdom — where inheritance tax can be charged at 40% on estates exceeding a specified threshold — or France, where progressive succession duties apply regardless of the parties’ place of residence, Egypt imposes no dedicated inheritance or estate tax on property passing on death.

What costs do apply on inheritance? Where property is inherited rather than sold, heirs are responsible only for registration fees (1–3%) to formalise the transfer. These fees are necessary to vest legal title in the heirs’ names through the Real Estate Publicity Department. The 2.5% RETT does not apply to direct family inheritance transfers.

How inheritance is determined: The devolution of property in Egypt is governed by the Egyptian Civil Code and, for Muslim nationals, the rules of Islamic law (Sharia). The inheritance framework is prescriptive, with property allocated among heirs according to fixed statutory shares, particularly in Muslim estates. Individuals may express their intentions through a will (testament), but any will cannot contravene the mandatory Islamic inheritance provisions. The inheritance process is subject to judicial oversight, and the distribution of assets must be formally registered.

Non-residents and foreign heirs: Foreign nationals inheriting property located in Egypt are treated in the same manner as Egyptian nationals — there is no additional surcharge or elevated tax rate for overseas heirs. However, the administrative process for non-resident beneficiaries can be involved, particularly in establishing legal heirship and assembling the necessary documentation. Engaging a locally qualified Egyptian solicitor is strongly advisable in such circumstances.

Double taxation treaties: Although Egypt imposes no inheritance tax, certain countries do levy estate or succession taxes on the worldwide assets of their own residents or nationals — including assets situated abroad in Egypt. Heirs should determine whether their home jurisdiction creates a liability in respect of Egyptian property they stand to inherit. Egypt has entered into double taxation agreements with a number of countries covering income taxes, but the scope of estate and inheritance tax treaty provisions varies considerably. Advice should be sought from a professional familiar with the tax rules of both countries involved.

Does gift tax apply to property transfers in Egypt?

Egypt imposes no net wealth tax, inheritance tax, estate tax, or gift tax on property. This places Egypt in a comparatively rare position internationally — the majority of significant property markets apply some form of tax to lifetime property transfers between individuals.

RETT on gifts: Although no standalone gift tax exists, the Real Estate Transaction Tax can apply to transfers by way of gift as well as by sale or inheritance, subject to certain exemptions. In particular, transfers between members of the immediate family — spouses, parents, and children — effected through inheritance or gift are tax-free. This family exemption from the 2.5% RETT carries real practical value: parents transferring property to their children, or spouses passing property between themselves, avoid the transaction tax entirely.

Gifts outside the immediate family: Where property is gifted to someone who falls outside the immediate family category defined under the law — for example, a sibling, a friend, or a more distant relative — the 2.5% RETT may be triggered, assessed on the market value or government valuation of the property (whichever is the greater). Always confirm the prevailing rules and the precise family relationships that qualify for exemption with the Egyptian Tax Authority or a locally qualified solicitor before proceeding.

Registration fees still apply: Even where a gift transfer qualifies for exemption from RETT, the recipient will still be required to pay registration fees (1–3%) in order to formally record the change of ownership at the Real Estate Publicity Department. This step cannot be bypassed if the transfer is to carry legal force.

Are there any tax advantages or incentives for buying property in Egypt?

Egypt offers a range of tax reliefs and exemptions that can meaningfully reduce the cost of acquiring and holding property — particularly for first-time purchasers, buyers of lower-value residential units, and investors operating in certain commercial sectors.

First-time homebuyer exemption: The exemption ceiling for first residential property purchases was raised from EGP 2 million to EGP 3 million under a 2023 amendment, provided the unit does not exceed 200 square metres. This means buyers acquiring their first home at or below EGP 3 million are entirely exempt from the 2.5% Real Estate Transaction Tax — a potential saving of up to EGP 75,000 on a EGP 3 million acquisition. Confirm the current threshold with the Egyptian Tax Authority, as these figures are periodically revised.

Annual property tax exemptions for most homeowners: The 2026 amendments raised the residential exemption threshold to a net annual rental value of EGP 100,000, equating to an estimated market value of approximately EGP 8 million. In practical terms, owner-occupiers of all but the most high-value properties have no annual real estate tax liability whatsoever.

Commercial property discount (2024 initiative): A 50% discount on transaction taxes for industrial and commercial property transfers was introduced as a 2024 measure to stimulate investment activity. Check with the relevant authority whether any comparable concession has been renewed or extended into 2025 or 2026.

No CGT for individuals: As discussed above, the absence of any capital gains tax on personal residential property disposals is itself a structurally significant advantage relative to purchasing property in most of Western Europe or North America. The flat 2.5% transaction tax on the sale price is far less onerous than the CGT liability that would arise on substantial gains in many alternative markets.

Investment Law incentives: Egypt’s 2017 Investment Law (No. 72/2017) actively encourages the inflow of foreign capital by permitting corporate investors to acquire real estate in connection with projects and by providing a suite of incentives. Investors structuring acquisitions through a corporate vehicle should obtain specialist legal and tax advice to understand how this framework applies to their circumstances.

2024 Desert Land Law reforms: In January 2024, Parliament amended the Desert Land Law to permit foreign nationals to hold full ownership of land for investment projects. This removed earlier requirements mandating majority Egyptian ownership (51%) in investment ventures and limiting individual foreign shareholdings to 30%. These reforms open up new possibilities for larger-scale property investment by overseas parties.

Do different rules apply to foreign buyers or non-residents purchasing property in Egypt?

Foreign nationals are permitted to buy property in Egypt, but specific legal constraints and administrative obligations apply that do not affect Egyptian citizens. However, the tax rates themselves are broadly identical for all purchasers regardless of nationality.

Ownership restrictions: The foundational statute in this area is Law 230/1996: it allows foreigners to acquire property but imposes important limitations. Under this law, a foreign individual may own up to two real estate units for personal or licensed business purposes, with neither unit exceeding 4,000 square metres. Since overseas purchasers are generally restricted to residential units rather than land or commercial property under the standard framework, their exposure to property taxes is automatically confined to the residential rates and rules.

Tax rates are equal: All property tax rates, exemptions, deductions, and payment timetables apply in identical fashion to foreign and Egyptian property owners alike. The annual real estate tax, transfer taxes, registration fees, and stamp duty are the same regardless of the buyer’s nationality. There is no official additional transfer tax surcharge levied on foreign purchasers in Cairo — the 2.5% rate applies universally — though overseas buyers frequently encounter higher professional service costs for documentation and legal representation.

Foreign currency requirement: Foreign purchasers are required to demonstrate that acquisition funds were remitted into Egypt from abroad in a recognised foreign currency. In practice, the seller must be able to show that the purchase price was settled via an approved bank transfer originating outside Egypt, or — where payment is made in Egyptian pounds — that an equivalent foreign-currency transfer was effected at the applicable exchange rate. A 2024 regulation makes it mandatory for registration offices to reject any sale to a foreign national where these foreign-exchange requirements have not been satisfied.

Registration requirements: Foreign property owners must register with the Egyptian Tax Authority and file the same annual declarations and make the same payments as Egyptian nationals. For tax compliance purposes, foreign nationals in Egypt are treated as residents.

Additional documentation costs: Overseas buyers should allow for supplementary administrative costs not ordinarily encountered by Egyptian purchasers, including certified Arabic translations of all relevant documents, legalisation or apostille of foreign identity documentation, and potentially the engagement of a specialist lawyer experienced in cross-border transactions. Transferring funds to Egypt for a purchase may also attract currency conversion costs and international transfer charges. During periods of currency volatility, buyers may additionally be exposed to material losses arising from unfavourable exchange rates or depreciation of the Egyptian pound.

2024 land reforms: Recent legislative changes have liberalised certain aspects of foreign ownership. The January 2024 amendments to the Desert Land Law allow foreign nationals to hold full ownership of land designated for investment projects, removing earlier requirements for majority Egyptian ownership. Ordinary residential purchases by foreign individuals, however, continue to be subject to the limits established under Law 230 — namely a maximum of two units per individual — and further legal advice should be sought for any transaction falling outside this framework.

Frequently asked questions

Do I need to pay tax when I buy a property in Egypt as a foreigner?

As a foreign purchaser, you will pay the same registration fees (typically 1–3% of the declared value) and stamp duty (approximately 0.5%) as any Egyptian buyer. The 2.5% Real Estate Transaction Tax is a legal obligation of the seller, not the buyer. No additional tax surcharges are imposed specifically on foreign purchasers. You will, however, need to satisfy Egypt’s foreign currency remittance requirements in order to complete the purchase. Verify the current requirements with the Egyptian Tax Authority.

Is there a capital gains tax when I sell my Egyptian property?

No — individual sellers in Egypt are not subject to a conventional capital gains tax calculated on their profit. Instead, a flat 2.5% Real Estate Transaction Tax is applied to the total sale value (or the government’s assessed figure, whichever is higher). This rate applies equally to Egyptian nationals and foreign sellers. Always confirm the current legal position with the Egyptian Tax Authority, as the legislation remains subject to revision.

How much annual property tax will I pay on a typical apartment in Egypt?

Following the 2026 amendments to the Real Estate Tax Law, the exemption threshold was substantially raised so that only properties with an assessed annual rental value exceeding EGP 100,000 — broadly corresponding to a market value of around EGP 8 million — are liable for annual real estate tax. The great majority of residential owners, including expatriates holding one or two apartments, are unlikely to have any liability at all. For properties above the threshold, the tax is calculated at 10% of 70% of the assessed annual rental value. Confirm the current thresholds directly with the Real Estate Taxation Authority.

Do I need to declare rental income from my Egyptian property?

Yes. Rental income generated by Egyptian property must be reported to the Egyptian Tax Authority and is liable to personal income tax under Egypt’s progressive tax bands. Tenancy agreements must also be registered with the tax authority. Regardless of whether you are resident in Egypt or based abroad, rental income sourced in Egypt is taxable there. A double taxation treaty between Egypt and your home country may serve to reduce or eliminate dual taxation — consult a qualified adviser for guidance tailored to your specific situation.

Will my heirs pay tax when they inherit my Egyptian property?

Egypt has no inheritance or estate tax. Beneficiaries inheriting property from members of the immediate family (spouses, parents, children) are also exempt from the 2.5% Real Estate Transaction Tax. The principal cost for heirs is registration fees (1–3%) to formally transfer title into their names. Bear in mind that your home country may impose its own inheritance or estate tax on your worldwide assets — this should be explored with a locally qualified adviser in your country of residence.

Can I give my property to a family member without paying tax in Egypt?

Egypt has no gift tax. Transfers of property between members of the immediate family (spouses, parents, and children) are additionally exempt from the 2.5% Real Estate Transaction Tax. Registration fees (1–3%) will nonetheless apply to record the change of ownership. Gifts to individuals who fall outside this immediate family group may attract the 2.5% RETT. Always verify the current list of qualifying family relationships with the Egyptian Tax Authority before proceeding.

How many properties can a foreign national own in Egypt?

Under Law No. 230 of 1996, a foreign individual is entitled to own up to two real estate units in Egypt for personal or licensed business use, with each unit restricted to a maximum of 4,000 square metres. The 2024 amendments to the Desert Land Law have eased ownership rules for investment projects, but the two-unit ceiling on personal residential ownership remains in force for standard purchases. Seek advice from a locally qualified Egyptian solicitor for your particular circumstances.

Where can I get official information about property taxes in Egypt?

The principal official bodies are the Egyptian Tax Authority (ETA) — responsible for income tax and transaction taxes — and the Real Estate Taxation Authority (RTA), which administers annual property tax. The Ministry of Finance publishes updates whenever legislative changes are enacted. Given the pace of reform in Egyptian property tax law — with major amendments as recently as 2026 — always verify current rates, thresholds, and exemptions directly with these bodies or with a locally qualified Egyptian tax adviser before reaching any financial decisions.