News & Insights

Key Takeaways

• Foreign investors are not charged any additional taxes on properties compared to the locals, no extra fees will be imposed.

• The annual property tax is calculated at 10% of the rent value determined by the property assessor, after a 30% deduction for residences, it is not based on the sale price.

• Those owning a property with an annual rent value less than 24,000 EGP (soon to be 50,000 EGP) are completely excused from paying the tax.

• Do not forget to set aside an additional 7 to 11% besides the purchase amount to cover one-time fees such as registration, stamp duty, transfer tax, and legal costs.

• Only the sale of newly built properties directly from developers is subject to 14% VAT, while second-hand properties are exempt.

• There is no tax on capital gains if an individual sells a residential property in Egypt.

• If you lease your property, the tax on rental income is a progressive scale of 10 to 27.5%.

• Real estate tax documents are submitted to the Real Estate Tax Authority (RETA), Form 6 is filed upon purchase and then every five years.

• There is no property inheritance tax in Egypt, family transfers fall under the exemption with only the standard registration fees to be paid.

It is crucial to understand the property tax system in Egypt for any foreign buyer. This is because, on the one hand, it will allow you to accurately budget before acquiring a property and on the other hand, it will help you to be fully compliant with the rules after the purchase. The fact that Egypt grants foreign and local property owners equally with regard to their tax responsibilities, without imposing any extra fees on international buyers, is definitely a piece of good news.

This guide will reveal all the taxes and fees that a foreign buyer should know in 2026: the amounts you pay, the timing of payments, the filing method, the exceptions that are in place, and the most frequent errors that lead to non-compliance and how to avoid them.

For a full breakdown of property prices, buying costs, and legal ownership rules in Hurghada, see our guide: Buying Property in Hurghada as a Foreigner: Complete Guide 2026

What Do Foreign Buyers Need to Know About Property Taxes in Egypt?

Egyptian property tax system is designed based on a fundamental concept that the tax is determined from the government's assessment of the property's annual rental value, rather than the market price or the actual rent received. This is a big deal because it implies that in many cases your tax liability will be much less than what would be expected from the price of the property alone.

Foreign investors are charged the same tax rates as Egyptians on all categories annual property tax, transfer tax, rental income tax, and VAT. There are no extra charges based on nationality.

Here is a complete overview of every tax and fee that applies:

Tax / FeeRatePaid By****NotesAnnual Real Estate Tax10% of net rental valueOwner30% deduction for residential; 32% for commercialProperty Transfer Tax2.5% of sale priceSellerExemptions for some first-home buyersRegistration Fees1–3% of property valueBuyerRequired for legal ownership transferStamp Duty~0.5% of property valueBuyer / SellerApplied to legal contractsRental Income Tax10–27.5% (progressive)Owner (if renting)Deductions allowed for expensesCapital Gains TaxNone for individuals—May apply to corporate/business salesVAT on New Properties14%BuyerOnly on new developer sales, not resalesMunicipal / Service FeesVariableOwnerBased on local authority rates

What One-Time Purchase Taxes and Fees Apply When Buying Property in Egypt?

These expenses are made at the time of purchase and are different from ongoing yearly commitments.

Registration Fees

Registration fees of 1 to 3% of property value are paid by the buyer to the Real Estate Registration Office (Shahr Aqari). A fee of this kind is the prerequisite to officially registering ownership and acquiring the title deed. Sometimes for residential property, the fee is limited to a maximum of EGP 2,000, make sure to ask your lawyer if this applies to your specific property.

Property Transfer Tax

When property ownership is transferred, a 2.5% tax on the sale price is levied. Usually, the seller bears this cost but it remains a negotiable issue in the first contract. Those who are buying for the first time a property worth less than EGP 3 million and with an area not exceeding 200 m² may be entitled to a waiver, check with your lawyer if you are eligible.

Stamp Duty

Legal agreements related to a property sale attract a stamp duty of about 0.5% of property value. This charge normally is divided between the buyer and the seller.

VAT on New Properties

Customers buying newly-built properties directly from developers are charged 14% VAT on the purchase amount. This is not applicable to resale properties, it applies only to first sales by licensed developers. Take this into consideration when budgeting for off-plan purchases vs. secondary market properties.

Discover 3 Pyramids Resort, which is an example of a well-structured investment property in Egypt. Understanding the tax framework around such a purchase is essential before signing any contract.

What Ongoing Annual Tax Obligations Do Foreign Property Owners Have?

Annual Real Estate Tax

This is the main repeated tax for property owners in Egypt Highlights, compared to property tax rates in most European markets:

• Tax rate: 10% of net annual rental income

• Residential properties deduction: 30% (Commercial: 32%) is deducted before applying the 10% tax rate

• Tax base: Rental value assessed by the government and decided by RETA committees not the actual rent or market price

• Reassessment frequency: Every five years

• Exemption: Properties with an annual rental value of less than EGP 24,000 are currently fully exempt. This limit is likely to be increased to EGP 50,000 check the latest figure with RETA at the time of purchase

Example: A residential property with a government-assessed annual rental value of EGP 30, 000 (above exemption limit) will be taxed as:

• First deduct 30%: EGP 30,000 × 0.70 = EGP 21,000

• Then take 10%: EGP 21,000 × 10% = EGP 2,100 per year

Rental Income Tax

When you make your property available for rent, either short-term or long-term, the rental income is liable to income tax in Egypt, which is progressive. The rates are:

• 10-27.5% subject to the level of total income

• Properly documented expenses associated with the property can be deducted

• Obligation to register with the Egyptian Tax Authority and submit the annual income tax return

This rule also applies to foreigners who own properties and rent them out in Egypt, including those who rent out their homes for holidays in resort places such as Hurghada and Sahl Hasheesh.

Explore Holidays Park Resort, buyers can benefit significantly from Egypt's relatively low property tax rates, making it an even more attractive investment after accounting for ongoing holding costs.

Municipal and Service Fees

These are local fees which differ from one place to another and include water, electricity, maintenance of the shared infrastructure, and other public services. Please note that these are totally different charges from a formal tax perspective and should be kept separate when budgeting.

Are There Capital Gains Taxes for Individual Property Sellers in Egypt?

Individual property owners who decide to resell residential property in Egypt won't be subject to capital gains tax. This is a big plus when you compare it with the situations in many European and North American markets where capital gains taxes can take a big chunk out of resale profits.

Main exception: Should the property be sold by a corporate entity or considered as part of business assets, then a capital gains taxation might be due. Please see a tax consultant before managing any sale through a company.

Is There an Inheritance Tax on Property in Egypt?

Egypt does not impose any inheritance tax on real estate. Essentially, the transfer of property within family members or through inheritance will not be subject to any taxes other than the usual registration fees. This certainly represents a big plus for expats who may have estate planning issues and is also one of the reasons why investing in property in Egypt can be a very effective way to preserve one's wealth over time.

For more on how inheritance law interacts with foreign property ownership, see our expat buyer guide: Buying Property in Egypt as an Expat: The Complete 2026 Guide

How to File and Pay Property Tax in Egypt?

Who Must File?

Every owner of a property whether native or foreign has to submit their property tax declarations to the Real Estate Tax Authority (RETA) unless their property has been exempted by name. This also extends to owners with the right of usufruct. The only way tenants will be held liable is if the owners have defaulted on the payment and the tenants have received legal notice.

Files Required

Have your documents ready before you go to submit the declaration:

• Title deed of the property

• Copy of national ID or passport

• Utility bills (to prove occupancy or support exemption cases)

• Documents supporting the exemption you claim

Filing the Declaration Form 6

• Form: Real Estate Tax Declaration (Form 6). Submit it to the RETA office in the city where your property is located.

• When to file: You must file within the calendar year of purchase (by December 31), and then every five years thereafter, or immediately following any significant change to the property.

• Method: At the local RETA office, you can do it in person. Alternatively, you can file electronically through the Egyptian Tax Authority portal. It's the standard and preferred mode of filing.

Payment Schedule

Installment****Due DateFirst installmentBy June 30Second installmentBy December 31

It's your choice, whether you want to pay the whole amount for the year at once or divide it into two equal parts.

Online payments can be done via the Egyptian Tax Authority portal, at authorized banks, post offices, or even by visiting local RETA offices.

Make sure to keep the payment receipts for at least five years.

Appealing an Assessment

Here's what you should do if you consider the rental value determined by RETA to be inaccurate:

• You will have 60 days counting from the day you are notified or the day of publication in the Official Journal to appeal.

• Considerable appeal fee will be charged.

• Hand over the appeal to your local RETA office, if the conflict remains unresolved, you can take it to court.

What Common Tax Compliance Mistakes Do Foreign Buyers Make?

Missing Filing Deadlines

Filing Form 6 on or before December 31 of the year you purchase is a legal requirement. Missing this will lead to penalties. Make sure you set calendar reminders as soon as you finish your purchase.

Confusing Market Value With Assessed Rental Value

Your yearly property tax is not determined by the purchase price of your property or its rental value at the market. Rather, it is based on the rental value assessed by the government, as determined by RETA committees. A lot of foreign buyers end up paying too much or too little because they confuse these two concepts. You can check the exact assessed value at RETA.

Missing Exemption Claims

Some properties may be exempt from taxation if their annual rental value is below a certain limit only if you file and claim the exemption. Non-filing might lead to the issuance of tax bills that you would have to dispute. Even if you think you are exempt, always remember to file.

Not Registering Rental Income

Foreigners who have bought properties to rent out, especially in tourist spots like Hurghada, tend to forget that they have to register with the Egyptian Tax Authority and declare rental earnings. This is a compliance risk, particularly since digital payment methods make income more traceable.

Late or Incorrect Payments

Penalties for paying late are quite steep, delayed transfer taxes can be charged up to 40% of the original amount. It is therefore wise to make payments through official channels and keep the payment receipts as proofs.

Ignoring Legal Changes

Egypt reviews and changes periodically its tax thresholds and regulations. The exemption threshold is EGP 24,000 at the moment but there are plans for it to be increased. Foreign buyers who ignore these changes are at risk of overpaying or not being in compliance. This is the point at which having a local tax consultant is very useful.

Do You Need a Tax Professional in Egypt?

First of all, it is true for most foreign buyers especially when it comes to the very first year they own a property. That is probably the time when they can get most out of professional tax advice.

• Buying or selling your first property in Egypt

• Trying to get exemptions or disputing RETA assessments

• Declaring rental proceeds or having more than one property

• Getting penalized or wanting to make a legal line of defense

• Reading updates in law that change your tax responsibilities

Criteria of a good tax consultant in Egypt:

• Registered with the CPA or relevant licensing body of Egypt

• Specialized in real estate and foreign owners

• Speak your language, both verbally and writing

• Clear and reasonable pricing policy prior to starting work

• Good at digital submissions, handling appeals, and making future plans

What Is the Total Tax Cost for Foreign Buyers in Egypt?

In order to assist you in planning accurately, here is a detailed cost overview:

At purchase (one-time):

• Registration: from 1% to 3%

• Transfer Tax: 2.5% (commonly the seller's burden, but can be negotiated)

• Stamp Duty: approximately 0.5%

• Legal Fees: from 1% to 3%

• VAT (only for new builds): 14%

• Total buyer upfront extra costs: 7-11% above purchase price

Annually (ongoing):

• Real Estate Tax: 10% of net assessed rental value (after 30% deduction)

• Rental Income Tax: 10-27.5% if leasing the property

• Municipal / Service Fees: Variable

At resale:

• Capital Gains Tax: No tax for individuals selling their residential property

• Transfer Tax: 2.5% (usually paid by seller)

Buying Property in Hurghada? Start Here

Knowing your tax obligations is a part of the puzzle. Homes Bay assists foreign buyers in the entire journey right from choosing a property and conducting a legal check, to registration and continuous compliance support.

Browse apartments for sale in Hurghada

Frequently Asked Questions

Do foreigners pay more property tax than Egyptians in Egypt? No, it is not true that foreign buyers pay higher property tax rates than Egyptian nationals in Egypt; they pay exactly the same property tax rates across different categories, e.g. annual real estate tax, transfer tax, VAT, and rental income tax. No nationality-based surcharges exist.

How much is the annual property tax in Egypt? The annual real estate tax rate is 10% of the government-assessed net rental value, after a 30% deduction for residential properties. The tax is not calculated on the market value or purchase price of the property. For properties with an assessed annual rental value below EGP 24, 000, they are currently exempt from this tax.

Is there capital gains tax when selling property in Egypt? No. Individual sellers of residential property in Egypt aren't liable for capital gains tax. However, companies and businesses may be liable for capital gains tax on such transfers, as this exemption only applies to individual sellers of residential property.

Do I pay VAT when buying property in Egypt? If I purchase a property in Egypt do I have to pay VAT? Only new properties bought straight from the developers are subjected to a 14% VAT while the resale and secondary market transactions are not subject to VAT. You should double-check with the developer whether the VAT is included in the price quoted to you.

How do I file property tax in Egypt as a foreigner? To submit your Form 6 (Real Estate Tax Declaration), you need to go to the Real Estate Tax Authority (RETA) office located in the city where your property is. The deadline is December 31 of the year you purchase, and then every five years. You can also file in person or electronically through the Tax Authority portal.

Are there inheritance taxes on property in Egypt? In Egypt, no inheritance tax is imposed on property. Besides typical registration fees, property transfers via inheritance or within family are not taxed which is a reason why Egyptian property is considered a good long-term wealth storage option by foreign investors.

What happens if I miss the property tax filing deadline in Egypt? If you are late with the filing, you will be subject to penalties and monthly interest charges. As for transfer taxes, the penalties can be as high as 40% of the amount due. In case of continuous non-payment, the owner may face a block on property registration or future transactions until the arrears are cleared.

Last updated: April 2026 | Content reflects current Egyptian Tax Authority regulations and Real Estate Tax Authority guidelines. Always consult a qualified local tax advisor before making financial decisions.