Guide to Property Taxes in Egypt
Tax Rate on Rental Income |
|||
| Monthly Income | US$1,500 | US$6,000 | US$12,000 |
| Tax Rate | 13.75% | 13.75% | 13.75% |
Nonresidents are taxed on their income from Egyptian sources.
Rental income derived by nonresidents is taxed at standard income tax rates. Taxable income is gross rent minus income-generating expenses. A maximum deduction of 50% of the gross rent is allowed for operating expenses.
Income Tax Rates |
|
| Taxable Income (EGP/US$) | Tax Rate |
| Up to 40,000 (US$842) | 0% |
| 40,000 – 55,000 (US$1,157) | 10% |
| 55,000 – 70,000 (US$1,473) | 15% |
| 70,000 – 200,000 (US$4,208) | 20% |
| 200,000 – 400,000 (US$8,416) | 22.50% |
| 400,000 – 1,200,000 (US$25,247) | 25% |
| Over 1,200,000 (US$25,247+) | 27.50% |
| Source: Global Property Guide, KPMG, PWC | |
Rental Income Tax as a Corporate
The corporate income tax (CIT) rate in Egypt is 22.5% applied to the net taxable profits of a company.
Capital Gains Tax for Non-Resident Individuals
- Capital gains realized by non-resident shareholders from the disposal of listed shares on the EGX are not subject to CGT (including T-bonds).
- Capital gains from the sale of unlisted shares or securities are subject to personal income tax (PIT) at progressive rates up to 25%, except for gains from T-bills, which are not taxable.
- Capital gains from shares invested abroad are not taxed in Egypt.
Buying and Selling Taxes/Costs
| Transaction Costs | ||
| Who Pays? | ||
| Property Transfer Tax | 2.00% - 5.00% | buyer |
| Notary Fees | 3.00% | buyer |
| Legal Fees | 2.00% - 3.00% | buyer |
| Real Estate Agent Fee | 2.00% - 3.00% | seller |
| Costs Paid by Buyer | 7.00% - 11.00% | |
| Costs Paid by Seller | 2.00% - 3.00% | |
| Roundtrip Cost | 9.00% - 14.00% | |
| Source: Global Property Guide, KPMG, PWC | ||
Property Holding Tax
Real estate tax is imposed on Egyptian properties, payable by the owner. The tax is based on the rental value of the property, assessed every five years. The flat rate is 10% after deducting assumed maintenance expenses:
- 30% for residential properties
- 32% for non-residential properties
Properties with an annual rental value under EGP6,000 (US$126) are exempt from real estate tax.