Authored by the expert who managed and guided the team behind the Egypt Property Pack
Everything you need to know before buying real estate is included in our Egypt Property Pack
Property taxes in Egypt involve multiple levies that affect ownership, transactions, and rental income with specific rates and exemptions that vary by property type and value. Understanding these tax obligations is essential before investing in Egyptian real estate, as they directly impact your total cost of ownership and rental returns.
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 imposes a 10% annual real estate tax on built properties, 1.5-2% registration fees on purchases, and 2.5% capital gains tax on sales.
Properties under EGP 2 million are exempt from annual taxes, while rental income faces progressive tax rates from 0% to 22.5% based on income brackets.
| Tax Type | Rate | Who Pays |
|---|---|---|
| Annual Real Estate Tax | 10% of net rental value | Property owner |
| Registration Fee | 1.5-2% of property value | Buyer |
| Capital Gains Tax | 2.5% of sale price | Seller |
| Notarization Fee | 0.5% or EGP 500-1,000 | Buyer |
| Rental Income Tax | 0-22.5% progressive | Property owner |
| Late Payment Penalty | 1.5% monthly (20% cap) | Property owner |
| Filing Service Fee | EGP 100-300 | Property owner |
What taxes apply to owning and transacting property in Egypt in 2025, and what is the exact rate or fixed fee for each one?
Egyptian property owners face five main types of taxes and fees as of September 2025.
The annual real estate tax applies to all built properties at 10% of the net annual rental value, which is the government-assessed rental value minus 30% for residential properties and 32% for commercial properties. This tax is due every March 31st and affects apartments, villas, offices, shops, and industrial buildings.
Registration fees range from 1.5% to 2% of the declared property value, with a minimum fee of EGP 500. Most governorates apply 1.5%, while premium areas like New Cairo and the New Administrative Capital can charge up to 2% for luxury properties. The buyer always pays this fee during the property transfer process.
Capital gains tax is a flat 2.5% of the gross sale price, not the actual gain, which the seller must pay at the time of registration. This applies to all property sales except primary residences under certain conditions.
Notarization fees cost approximately 0.5% of the property value or a fixed amount between EGP 500 and EGP 1,000 per document, depending on the complexity of the transaction and the notary office used.
Which property types and uses are taxed, and what are the precise thresholds that determine tax applicability?
All built properties in Egypt are subject to annual real estate tax regardless of their use, with specific value thresholds determining exemptions.
Primary residences valued under EGP 2 million are completely exempt from annual real estate tax. This exemption applies only to your main home where you actually live, not second homes or investment properties. You must provide proof of residency and ownership documents to claim this exemption.
Second homes, rental residential properties, commercial buildings, and industrial facilities all face the standard 10% annual tax on net rental value with no exemptions based on use. The government assesses rental values every five years based on market conditions, location, property age, and amenities.
Vacant land does not incur annual property tax but may face local development levies depending on the governorate's urban planning requirements. However, once you build on the land, the completed structure becomes subject to the annual real estate tax.
It's something we develop in our Egypt property pack.
How is the taxable value calculated for each tax in 2025, and what are the worked examples for different property values?
The Egyptian Tax Authority calculates taxable values using government-assessed rental values that are updated every five years through comprehensive market evaluations.
For residential properties, the calculation starts with the gross annual rental value as determined by the tax authority, then subtracts 30% as a maintenance and depreciation allowance. Commercial and industrial properties receive a 32% deduction. The remaining net rental value is then taxed at 10%.
| Property Value | Annual Rental Value | Net Value (After Deduction) | Annual Tax |
|---|---|---|---|
| EGP 1,000,000 (Residential) | EGP 60,000 | EGP 42,000 (70%) | EGP 4,200 |
| EGP 3,000,000 (Commercial) | EGP 180,000 | EGP 122,400 (68%) | EGP 12,240 |
| EGP 5,000,000 (Industrial) | EGP 300,000 | EGP 204,000 (68%) | EGP 20,400 |
| EGP 1,000,000 (Primary Home) | EGP 60,000 | Exempt | EGP 0 |
| EGP 3,000,000 (Second Home) | EGP 150,000 | EGP 105,000 (70%) | EGP 10,500 |
Registration fees are calculated directly on the declared property value at purchase, while capital gains tax applies to the full sale price regardless of your actual profit or loss on the transaction.
What exemptions, allowances, and reliefs exist, and how do you claim them?
Egypt offers several tax exemptions and reductions for property owners who meet specific criteria and follow the proper application procedures.
The primary residence exemption is the most significant, completely waiving annual real estate tax for properties valued under EGP 2 million that serve as your main home. You must submit Form A104 to your local tax office with proof of residency, property ownership documents, and a sworn statement that this is your primary residence. This exemption must be renewed every five years during reassessment periods.
Senior citizens aged 65 and above receive an additional EGP 5,000 to EGP 10,000 annual exemption on top of other allowances. Disabled property owners can claim similar reductions by providing medical documentation and disability certificates from authorized Egyptian medical authorities.
Nonprofit organizations and charitable institutions receive full exemptions from all property taxes by submitting their official registration documents and annual activity reports to prove their qualifying status.
Early payment incentives include a 5% discount on annual real estate tax if you pay the full amount by March 1st instead of the standard March 31st deadline. You can claim this discount through the online tax portal at eta.gov.eg or at local tax offices.
Do tax rates or fees vary by governorate or city, and what are the exact local variations?
Property tax rates remain uniform across Egypt at 10%, but registration fees and service charges vary significantly between different governorates and cities.
Cairo, Giza, and Alexandria maintain the standard 1.5% registration fee structure with a minimum of EGP 500, while premium developments in New Cairo and the New Administrative Capital can charge up to 2% for luxury properties valued above EGP 5 million.
| Location | Annual Tax Rate | Registration Fee | Service Fees |
|---|---|---|---|
| Cairo | 10% | 1.5% (min EGP 500) | EGP 100-200 |
| Giza | 10% | 1.5% (min EGP 500) | EGP 100-200 |
| Alexandria | 10% | 1.5% (min EGP 500) | EGP 150-250 |
| New Cairo | 10% | Up to 2% | EGP 200-300 |
| New Administrative Capital | 10% | Up to 2% | EGP 250-350 |
| Red Sea Governorate | 10% | 1.5% (min EGP 500) | EGP 150-200 |
| South Sinai | 10% | 1.5% (min EGP 500) | EGP 200-300 |
Local municipalities may impose additional development fees or infrastructure levies, particularly in new urban communities and resort areas, but these are separate from the standardized property tax structure.
What are the 2025 filing and payment deadlines, required documents, and associated fees?
Annual real estate tax payments are due by March 31st each year, with specific filing requirements and service fees that vary by submission method.
Online filing through the Egyptian Tax Authority portal at eta.gov.eg is free and allows you to submit Form A104 for property tax assessments and payments. You'll need your property ownership documents, tax identification number, previous year's assessment, and bank account details for electronic payment.
In-person submissions at local tax offices incur service fees ranging from EGP 100 to EGP 300 per transaction, depending on the governorate and complexity of your filing. Required documents include original property deeds, national ID or passport, proof of address, and any exemption certificates.
Registration fees for property purchases must be paid at the time of transfer through the Real Estate Registration Office, requiring Form Reg. 21, purchase contract, seller's clearance certificate, and buyer identification documents.
Late filing penalties start at EGP 500 for missing the deadline and can increase to EGP 2,000 for repeated violations, in addition to the monthly interest charges on unpaid amounts.
Don't lose money on your property in Egypt
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
Can I pay property taxes in installments, and are there early-payment discounts available?
Egypt allows property owners to split their annual real estate tax payments into quarterly installments with specific minimum amounts and early-payment incentives.
The installment schedule runs quarterly with payments due in March, June, September, and December, each installment requiring a minimum of EGP 1,000. You cannot split payments smaller than this amount across multiple periods.
Early-payment discounts offer a 5% reduction on your total annual real estate tax if you pay the complete amount by March 1st, which is 30 days before the standard March 31st deadline. This discount applies automatically when you submit full payment through the online portal or request it at tax offices.
You must commit to the installment plan at the beginning of the tax year and cannot switch between full payment and installments mid-year. Missing any installment payment triggers the standard late-payment penalties on the remaining balance.
Commercial and industrial property owners with annual tax bills exceeding EGP 50,000 can request extended payment plans up to six installments by submitting additional financial documentation and paying a 2% administrative fee.
What are the penalties and interest rates for late or under-payment in 2025?
Late payment penalties in Egypt compound monthly at 1.5% interest with additional fixed fines and a total penalty cap to prevent excessive charges.
Monthly interest of 1.5% applies to any unpaid balance after the March 31st deadline, calculated daily and compounded monthly. This interest continues until you pay the full amount plus accumulated penalties.
Fixed penalties start at EGP 500 for payments made 1-30 days late, increase to EGP 1,000 for 31-60 days late, and reach EGP 2,000 for payments more than 60 days overdue. These fines are separate from and additional to the monthly interest charges.
The total penalty cap limits your maximum additional charges to 20% of the original tax amount, regardless of how long the payment remains outstanding. This prevents penalty amounts from exceeding the original tax debt.
Egypt's 2025 amnesty program waives all penalty interest for property taxes paid before June 30th, but you must still pay the original tax amount and any fixed fines already assessed.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Egypt versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What taxes and fees apply when buying a property, and who pays each one?
Property purchases in Egypt involve several taxes and fees split between buyers and sellers, with total costs varying significantly based on the property value and location.
Buyers pay the registration fee of 1.5-2% of the property value, notarization fees of approximately EGP 500-1,000, and any applicable service fees ranging from EGP 100-300. The buyer also covers inspection fees, title search costs, and legal representation if hiring a lawyer.
Sellers pay the capital gains tax of 2.5% of the gross sale price, property clearance certificate fees, and any outstanding property taxes or penalties. The seller must also provide a tax clearance certificate proving all previous obligations are settled.
For a EGP 2,000,000 property purchase, the buyer pays approximately EGP 30,000 in registration fees plus EGP 1,000 in notarization, totaling EGP 31,000. The seller pays EGP 50,000 in capital gains tax.
For a EGP 6,000,000 property purchase, the buyer pays EGP 90,000 in registration fees plus EGP 2,000 in notarization, totaling EGP 92,000. The seller pays EGP 150,000 in capital gains tax.
It's something we develop in our Egypt property pack.
What capital gains taxes apply when selling property, and how are they calculated?
Capital gains tax in Egypt applies to the gross sale price at a flat 2.5% rate, not the actual profit or loss from your property investment.
The tax calculation uses the full sale price without any deductions for purchase costs, improvements, or holding expenses. This means you pay 2.5% of the total amount received from the buyer, regardless of whether you made a profit or loss on the transaction.
Primary residence exemptions apply if the sold property was your main home for at least two consecutive years before the sale and the sale price is under EGP 5 million. You must provide residency documentation and utility bills to prove occupancy.
For a sale generating EGP 300,000 in gains (example: bought for EGP 1.7 million, sold for EGP 2 million), you pay 2.5% of EGP 2 million, which equals EGP 50,000 in capital gains tax.
For a sale generating EGP 1,000,000 in gains (example: bought for EGP 5 million, sold for EGP 6 million), you pay 2.5% of EGP 6 million, which equals EGP 150,000 in capital gains tax.
What taxes apply to rental income in 2025, and what are the rates for different income levels?
Rental income in Egypt faces progressive personal income tax rates ranging from 0% to 22.5%, with allowable deductions for property-related expenses and depreciation.
The tax brackets for 2025 start with 0% tax on the first EGP 60,000 of annual income, 10% on income from EGP 60,001 to EGP 70,000, 15% on EGP 70,001 to EGP 200,000, 20% on EGP 200,001 to EGP 400,000, and 22.5% on income above EGP 400,000.
Allowable deductions include 30% of gross rental income for maintenance and repairs, property management fees, insurance premiums, property taxes paid, and depreciation on furniture and fixtures.
For a property earning EGP 10,000 monthly (EGP 120,000 annually), your taxable base after the 30% expense deduction becomes EGP 84,000. Tax calculation: first EGP 60,000 at 0% (EGP 0) plus next EGP 24,000 at 10% (EGP 2,400), totaling EGP 2,400 annual tax.
For a property earning EGP 30,000 monthly (EGP 360,000 annually), your taxable base becomes EGP 252,000. Tax calculation: EGP 60,000 at 0%, next EGP 10,000 at 10% (EGP 1,000), next EGP 130,000 at 15% (EGP 19,500), next EGP 52,000 at 20% (EGP 10,400), totaling EGP 30,900 annual tax.
Do foreign or non-resident owners face different tax rates or additional requirements?
Foreign property owners in Egypt face the same tax rates as Egyptian citizens, but encounter additional withholding requirements and reporting obligations for rental income and property transactions.
Annual real estate tax, registration fees, and capital gains tax apply at identical rates regardless of nationality or residency status. Foreign owners pay the standard 10% property tax, 1.5-2% registration fees, and 2.5% capital gains tax.
Rental income from foreign-owned properties faces 10% withholding tax when paid by Egyptian tenants or property management companies to non-resident owners. This withholding is credited against your final income tax liability when filing annual returns.
Currency repatriation requires bank reporting for amounts exceeding EGP 1 million but incurs no additional taxes. You must provide documentation showing the source of funds and payment of all applicable Egyptian taxes.
For a foreign owner of a EGP 3,000,000 apartment generating EGP 150,000 annual rental income, the total annual obligations include EGP 10,500 property tax plus approximately EGP 7,350 rental income tax (after deductions), totaling EGP 17,850.
For a foreign owner of a EGP 8,000,000 commercial unit generating EGP 480,000 annual rental income, obligations include EGP 32,640 property tax plus approximately EGP 63,000 rental income tax, totaling EGP 95,640 annually.
It's something we develop in our Egypt property pack.
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.
Understanding Egypt's property tax system is crucial for making informed real estate investment decisions, as these costs directly impact your total returns and ongoing expenses.
The key is planning for both the upfront transaction costs and ongoing annual obligations, especially if you're considering rental income properties or commercial investments.