Egyptian property purchase is exempt from many taxes normally paid elsewhere. Below is an outline of Egypt’s property tax laws to help familiarize you with the system.
Today, taxes on the sale of real estate bear no relation to standard property taxes or real estate registration fees in other countries. The Egyptian government is currently debating a reform of property registration fees and is proposing to impose international-standard on property tax in Egypt.
In terms of property in Egypt, the sale of land and/or buildings is taxed in the same way and the system is very simple. Tax is chargeable at 2.5% of money earned from a sale and it must be filed as tax owed by April 1st. For example: an individual or corporation selling a piece of land for LE 100,000 must file a tax return by March 31st stating that LE 2,500 is owed in taxes.
The only exceptions (under Article 42) are income from the sale of inherited land or other real estate is tax which are free, as is any income earned from the sale of land or other real estate you own through a shared capital company, provided you keep your shares in the company for at least five years after the sale. This last provision is designed to prevent the formation of “paper” companies to dodge tax liabilities from the sale of properties.
In Egypt there is no stamp duty or capital gains tax payable on real estate and, if you are a British resident, you will also avoid inheritance tax on any Egyptian properties that you decide to pass on to your loved ones.
Any person, partnership or company must file a tax return detailing all rent or other income derived from real estate by March 31st of each year. For rental income the basic threshold for taxation is LE 5,000 per annum and, provided your rental income is less than this figure, you need not declare your received income.
For rental incomes greater than LE 5,000, 50% of the total amount is tax-free to cover maintenance and other expenses associated with owning the property. The balance is taxable at a standard rate of up to 20% rate of personal and corporate income. For example, you rent out a flat for LE 8,000 per month, grossing LE 96,000 in rental income per year. Simply subtract the deduction against costs of 50%, leaving LE 48,000 as taxable income. The balance owed in taxes is LE 6,100.
Get the latest property and investment opportunities direct to your inbox for FREE (you can unsubscribe anytime)
Egyptian Real Estate sees strong Resurgence as Country's moneyed Elite is buying again
Foreign Investors Gain from Losses in Egyptian Tourist Sector
Egyptian Tourism Set for Recovery in 2016
Egypt Lures Foreign Investors with Currency Devaluation
Real Estate Powering Egypt's Economy in 2015
Egypt in "Pre-Revolution Growth Trajectory"
All property news from Egypt
Subscribe to our RSS Feed
Fill out a requirements form and our experts will help you find a great selection of properties for sale in Egypt.
Help me find property in Egypt
Considering a property purchase in Egypt or need to transfer currency to/from Egypt?
Save Thousands in Currency Transfers
When considering a buying property in Egypt, you are well advised to get expert mortgage advice from a mortgage broker.
Get a mortgage quote in Egypt
Owners Direct is one of the UK's leading direct from owner rental websites and the first choice for holiday home owners who want a cost effective and easy way to fully book their properties.
Find out more
If you own or are about to purchase property in Egypt, you get an insurance quote using our online insurance quote form.
Get Insurance in Egypt
Do you have your British assets covered by a will?
Do you have your movable foreign assets covered by a will?
Have you made plans to protect your family in the event of your death?
Get more information on Wills
Everything you need to know about transferring your UK Pension is in our downloadable guide.
Get more information on Pensions
Muhafazat al Bahr al Ahmar Property
Muhafazat al Jizah Property
Muhafazat al Qahirah Property
Muhafazat Janub Sina' Property
Muhafazat Matruh Property
Muhafazat Qina Property
Subscribe to our newsletter and keep up to date with the latest and best investment opportunities around the world!