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Everything you need to know before buying real estate is included in our Egypt Property Pack
Property taxes in Egypt can significantly impact your investment returns and ongoing costs as a property owner.
Understanding Egypt's property tax system is essential for anyone considering buying real estate in this market, whether for investment purposes or personal use.
If you want to go deeper, you can check our pack of documents related to the real estate market in Egypt, based on reliable facts and data, not opinions or rumors.
Egypt's property tax system as of mid-2025 includes annual real estate tax at 10% of net rental value with significant exemptions for properties under EGP 24,000 annual rental value.
Property buyers also face a 2.5% transfer tax and various registration fees, while foreign investors pay the same rates as Egyptian citizens for residential properties.
| Tax Type | Rate | Who Pays | Key Details |
|---|---|---|---|
| Annual Real Estate Tax | 10% of net rental value | Property owner/user | 30% deduction for residential, 32% for commercial |
| Property Transfer Tax | 2.5% of sale value | Seller | Exemptions for first-time buyers |
| Registration Fees | 1-3% of property value | Buyer | Required for ownership transfer |
| Stamp Duty | 0.5% of value (varies) | Buyer/Seller | On documents and transactions |
| Capital Gains Tax | Not applicable for individuals | N/A | Only applies to business assets |
| Municipal Fees | Variable | Owner | Utilities, maintenance, services |
| VAT on Property | 14% | Buyer | On new properties from developers |
What are the main types of property taxes in Egypt in 2025?
Egypt has four primary property-related taxes that affect real estate owners and buyers.
The annual real estate tax is levied on the rental value of constructed properties and paid by the owner or user each year. Property transfer tax applies when ownership changes hands, typically paid by the seller at 2.5% of the transaction value.
Registration fees are required to officially transfer property ownership through the Land Registry, usually ranging from 1-3% of the property value and paid by the buyer. Stamp duty applies to various property documents and transactions, with rates varying based on the type and value of the transaction.
Egypt does not impose net wealth taxes, inheritance taxes, estate taxes, or gift taxes on property ownership.
These taxes form the complete framework for property taxation in Egypt's real estate market as of mid-2025.
How much is the annual real estate tax for residential properties, and does it vary by city or property value?
The annual real estate tax rate is set at 10% of the net annual rental value for residential properties across Egypt.
Before applying this 10% rate, the government provides a mandatory 30% deduction from the assessed annual rental value to account for maintenance and operational expenses. For example, if your residential property has an annual rental value of EGP 40,000, you deduct 30% (EGP 12,000), leaving a taxable base of EGP 28,000, resulting in an annual tax of EGP 2,800.
Yes, this tax does vary by city and property value through the annual rental value assessment system. Government committees assess the annual rental value every five years, considering location, building quality, neighborhood characteristics, and comparable properties in each area. Cairo properties typically face higher assessed rental values compared to smaller cities like Hurghada or Aswan.
The tax varies indirectly by property value since higher-value properties generally receive higher annual rental value assessments, though the calculation is based on rental potential rather than market purchase price.
Local tax offices in different governorates may also apply the assessment criteria differently, leading to regional variations in effective tax burdens.
Are there any exemptions or thresholds below which no property tax is due?
Yes, Egypt provides substantial exemptions for lower-value residential properties to protect middle and lower-income property owners.
Owner-occupied residential properties with an annual rental value of EGP 24,000 or less are completely exempt from real estate tax. This threshold was recently maintained in 2025, though there have been discussions about increasing it to EGP 50,000 in some proposed amendments.
Non-residential properties including commercial, industrial, and administrative units are exempt if their annual rental value is EGP 1,200 or less. Additional exemptions apply to residential units smaller than 60 square meters, properties owned by people with disabilities, and pensioners with monthly pensions below EGP 1,000.
Properties owned by educational institutions, hospitals, places of worship, and certain charitable organizations are also exempt from real estate tax. Newly constructed properties may receive temporary five-year exemptions, and properties under construction are not taxed until completion.
These exemptions are not automatic and require property owners to file applications with supporting documentation to the Egyptian Tax Authority.
How is the property tax calculated—based on market value, rental value, or another metric?
Egypt's property tax is calculated exclusively on the assessed annual rental value, not the market value or purchase price of the property.
Government assessment committees determine the annual rental value every five years by evaluating location factors, building quality, neighborhood economic conditions, and comparable rental properties in the area. This assessment aims to estimate what the property could realistically rent for annually, regardless of whether it's actually rented.
The calculation process involves taking the assessed annual rental value, applying the mandatory deduction (30% for residential, 32% for non-residential), and then applying the 10% tax rate to the remaining amount. For instance, a property with EGP 60,000 annual rental value would have EGP 18,000 deducted (30%), leaving EGP 42,000 as the taxable base, resulting in EGP 4,200 annual tax.
This rental value approach differs significantly from many countries that use market value or assessed property value for taxation purposes. The system aims to create more stable tax assessments that aren't subject to rapid property market fluctuations.
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Are there specific tax rates for commercial or rental properties, and how do they compare to residential rates?
Commercial and non-residential properties face the same 10% tax rate as residential properties but receive a slightly higher deduction.
Non-residential properties including commercial, industrial, and administrative units receive a 32% deduction from their annual rental value before tax calculation, compared to 30% for residential properties. This means commercial properties have a marginally lower effective tax rate despite the same nominal 10% rate.
For example, a commercial property with EGP 100,000 annual rental value would have EGP 32,000 deducted, leaving EGP 68,000 taxable, resulting in EGP 6,800 annual tax. A residential property with the same rental value would pay EGP 7,000 after the 30% deduction.
Properties used for rental income generation, whether residential or commercial, are subject to additional income tax on the rental profits at progressive personal income tax rates ranging from 10% to 27.5%, depending on total income levels.
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Do foreigners pay the same property taxes as Egyptian citizens, or are there different rules?
Foreigners pay exactly the same property taxes as Egyptian citizens with no additional surcharges or different rates.
However, foreign ownership is restricted to residential properties only - foreigners cannot own land or non-residential real estate in Egypt. Foreign buyers must also hold a valid residence visa to purchase residential property.
All property tax rates, exemptions, deductions, and payment schedules apply equally to foreign and Egyptian property owners. The annual real estate tax, transfer taxes, registration fees, and stamp duties are identical regardless of nationality.
The restriction comes in ownership types rather than tax treatment - since foreigners can only own residential units (not land or commercial properties), their tax exposure is automatically limited to residential property tax rates and rules.
Foreign property owners must register with the Egyptian Tax Authority and file the same annual declarations and payments as Egyptian citizens.
Is there a tax on buying a property (e.g. registration or transfer tax), and how much is it?
Yes, property purchases in Egypt trigger several one-time taxes and fees paid during the transaction process.
The real estate transaction tax is 2.5% of the official sales value or actual sale price (whichever is higher) and is typically paid by the seller. This tax applies to all property transfers including sales between individuals, corporate transactions, and inheritance transfers.
Registration fees ranging from 1-3% of the property value are paid by the buyer to officially register ownership with the Land Registry. Stamp duty of approximately 0.5% of the property value applies to various transaction documents and is split between buyer and seller.
Important exemptions include first-time homebuyers purchasing properties valued under EGP 3 million and smaller than 200 square meters, who are exempt from the 2.5% transfer tax. Transfers between immediate family members (spouses, parents, children) are also exempt from transfer tax.
These transaction costs typically total 4-6% of the property value, making them a significant consideration in Egypt real estate purchases.
Are there recurring taxes after the property purchase, and how often are they paid?
The primary recurring tax is the annual real estate tax, paid in two equal installments each year.
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The first installment is due by June 30th and the second installment by December 31st of each year, though property owners can pay the full annual amount in June if preferred. This tax is based on the assessed annual rental value and must be paid regardless of whether the property generates rental income.
Property owners must also pay utilities including electricity, water, and garbage collection fees directly to service providers on a monthly or quarterly basis. These are not taxes but essential property maintenance costs.
Municipal fees may apply in some areas but are generally minimal for residential property owners. VAT at 14% applies only to new property purchases from developers, not to ongoing ownership.
Property owners who rent their units face additional income tax on rental profits, calculated annually as part of personal income tax filings.
Is there a capital gains tax when selling a property in Egypt, and if so, how is it calculated?
For individual property owners, Egypt does not impose a separate capital gains tax on real estate sales of personal property.
When individuals sell residential property that was owned as a personal asset (not for business purposes), the profit from the sale is generally not subject to capital gains taxation. This applies to most foreign and Egyptian individual property owners who buy residential units for personal use or investment.
However, if the property was owned as part of a business or sole proprietorship, gains from the sale are taxed as business income at progressive rates ranging from 10% to 27.5% depending on total annual income.
Recent tax law changes in 2025 introduced capital gains tax on securities trading but specifically excluded real estate transactions for individual owners. Business entities selling real estate assets face corporate tax on gains at standard corporate rates.
This favorable treatment makes Egypt attractive for individual real estate investors compared to many countries that impose significant capital gains taxes on property sales.
What other fees or taxes should a property owner expect, such as garbage collection, maintenance, or municipal fees?
Property owners face several additional costs beyond the main property taxes that are essential for property maintenance and compliance.
Utility bills including electricity, water, and natural gas are paid directly to service providers with monthly or quarterly billing cycles. Garbage collection fees are typically included in municipal charges or paid separately to waste management companies.
Building maintenance fees apply to apartment owners in multi-unit buildings, covering common area upkeep, security, cleaning, and elevator maintenance. These fees vary significantly based on building quality and services provided.
Property insurance, while not mandatory, is highly recommended and costs vary based on property value and coverage level. Some mortgage lenders require property insurance as a loan condition.
Homeowners association fees may apply in compound or gated community developments, covering shared amenities like pools, gyms, security, and landscaping. Registration renewal fees may be required periodically to maintain current ownership documentation.
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Are there regional or city-specific taxes or surcharges that apply in places like Cairo or Alexandria?
While Egypt's property tax laws are national, regional variations exist in assessment practices and effective tax burdens across different cities.
Cairo properties typically face higher annual rental value assessments due to premium location factors, leading to higher absolute tax amounts even at the same 10% rate. Alexandria properties generally receive moderate assessments reflecting the city's coastal premium but lower than Cairo's most expensive districts.
Some governorates offer additional incentives for border areas, new urban communities, or special economic zones that can reduce effective property tax burdens. Desert or remote area properties often receive lower rental value assessments reflecting local market conditions.
Local tax administration offices may interpret assessment criteria differently, creating some variation in how properties are valued even within the same city. Tourist areas like Hurghada or Sharm El Sheikh may face different assessment approaches reflecting vacation rental potential.
Municipal fee structures vary by city, with larger cities like Cairo and Alexandria typically having higher municipal service charges for waste collection, street maintenance, and public services compared to smaller cities.
What documents and deadlines should property owners be aware of to stay compliant with Egypt's property tax regulations in 2025?
Property owners must maintain several key documents and meet specific deadlines to ensure compliance with Egyptian tax regulations.
The annual real estate tax declaration (Form 6) must be filed with the Egyptian Tax Authority, listing all properties owned nationwide. Supporting documents include the property title deed, utility bills proving occupancy for exemption claims, and documentation for any exemption eligibility such as disability certificates or charity registration.
Payment deadlines are crucial: the first installment is due by June 30th and the second by December 31st each year. Property owners have 60 days to appeal annual rental value assessments after publication in the Official Journal.
For exemption applications, property owners must proactively submit requests with supporting documentation to the Egyptian Tax Authority rather than waiting for automatic exemption processing. Electronic payment through the ETA portal is mandatory for all transaction taxes.
Property owners should maintain records for at least five years including tax payment receipts, property registration documents, and correspondence with tax authorities. Failure to meet deadlines can result in penalties ranging from EGP 200 to EGP 5,000 depending on the violation type.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Egypt's property tax system in 2025 offers significant advantages for individual property investors, particularly with generous exemptions for lower-value properties and no capital gains tax on personal real estate sales.
The key considerations for property buyers include the annual real estate tax at 10% of net rental value, one-time transfer taxes of 2.5%, and various registration fees, with total transaction costs typically ranging from 4-6% of property value.
Sources
- PWC Egypt Tax Summaries - Individual Other Taxes
- Real Estate Tax Authority Egypt - Official Portal
- Wafeq - Real Estate Tax Exemptions in Egypt
- Global Property Guide - Egypt Taxes and Costs
- Andersen Egypt - Real Estate Tax Guide
- PWC Egypt Corporate Tax Summary
- Matouk Bassiouny - Egypt 2025 Tax Updates
- Mondaq - Taxation in Egypt Property Guide