Property Buying Costs and Taxes in Egypt

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.