The tax system relating to Egypt property sales

• Inheritance Tax: Inheritance tax is not applicable in Egypt
• Capital Gains Tax: No capital gains tax is levied on property in Egypt
• Wealth tax: There is no wealth tax based on the value of your property
• Stamp Duty: No stamp duty is payable in Egypt

Tax from the sale of the property

When re-selling properties in Egypt, a tax of 2.5% is levied on the sale price. Foreign nationals are currently restricted to owning just two Egyptian properties at any one time. These properties should not exceed 4,000m² in size.

Rental Income:

Income tax on furnished Egyptian property

Under the Egyptian law no income tax is due for any income inferior to €3,250 Euros per year. Income tax is levied based on progressive rate, the maximum rate being 20%

The tax progression rate is as follows:

• Up to €3,250 = 0%
• Between €3,250 and €13,000 = 10 %
• Between €13,000 and €26,000 = 15 %
• Above €26,000 = 20 %

The taxable income is 50 % of the gross rent. The Egyptian tax administration will allow the owner of the property in Egypt to deduct from the remaining 50%, all the possible deductions; deductions such as works and modifications carried out on the property, management costs and community fees.

Note: There is no income tax levied on unfurnished Egyptian property rental income, provided the owner is not tax resident in Egypt.

If you are considering buying a property in Egypt it is highly advisable that you have up-to-date information about taxation issues affecting property sales in Egypt. The government is keen to attract inward investment in order to make it easier for foreigners to invest in the country. However, the Egyptian real estate investment market is relatively new which means that Egypt property tax laws are currently subject to ongoing change. Our team of knowledgeable Egyptian property brokers at Arabian Sands are able to offer basic information regarding Egyptian tax laws, however, we recommended that you seek the advice of a professional tax consultant specialising in overseas tax issues.