How Much Are Property Taxes in Egypt?

If you’re considering buying a home, apartment, or villa in Egypt, it’s important to understand the property tax structure—especially for foreign buyers looking to invest or relocate to popular destinations like Hurghada, New Cairo, or the North Coast.

Fortunately, Egypt’s property taxes remain relatively low by international standards. This guide outlines how much property tax you can expect to pay in Egypt in 2025, what exemptions apply, and how the system works for both residents and non-residents.

1. Does Egypt Have a Property Tax?

Yes, Egypt levies an annual real estate tax on built properties. It applies to residential, commercial, and rental units, whether occupied or vacant.

However, many property owners—especially those with primary residences or modest homes—are eligible for full or partial exemptions.

The law is governed by the Real Estate Tax Law No. 196 of 2008, last updated by Ministry of Finance guidelines in 2023 and applied through 2025.

2. How Is Property Tax Calculated in Egypt?

The property tax rate in Egypt is 10% of the annual rental value of the property (not the market value).

Here’s how it works:

• A government-appointed committee assesses your property’s estimated rental value (based on size, location, view, and condition).
• This rental value is multiplied by 10% to determine the annual tax.
• Owners are notified and must pay the assessed amount annually.

🔎 Example:
If your property’s assessed rental value is EGP 60,000 per year, the tax would be:
10% of 60,000 = EGP 6,000 annually

3. Property Tax Exemptions in Egypt (2025)

You may be exempt from paying property tax if your home meets one of the following criteria:

✅ Primary Residence Exemption

If the property is used as a primary residence and its assessed annual rental value is under EGP 24,000, no tax is due.

✅ Secondary Homes Under Threshold

A second home (vacation or investment) may also be exempt if the assessed rental value is below EGP 1,200 per month (EGP 14,400/year).

✅ Off-Plan Properties (Under Construction)

Properties under construction or not yet handed over are not taxed until delivered and registered.

✅ Certain Tourist Zones & Projects

Some gated communities or coastal resort zones may have pre-approved exemptions or reduced rates, especially if owned by tourism-focused developers.

4. Who Pays Property Tax in Egypt?

• The registered property owner (Egyptian or foreigner) is responsible for paying the tax.
• Tenants do not pay the tax directly.
• If you rent out your unit, you are still liable for the tax—even if the rental value exceeds exemption thresholds.

Foreigners can pay via a local bank or through their Power of Attorney representative in Egypt.

5. How and When Is Property Tax Paid?

Property tax is payable annually, typically in the first half of the calendar year.

You can pay through:

• The Real Estate Tax Authority (RETA) office in your property’s district
• Authorized Egyptian post offices
• Online through Egypt’s Ministry of Finance portal (currently being expanded in 2025)

Late payments may result in a fine or penalty, so it’s advisable to keep your tax status up to date—especially if you plan to sell or transfer ownership in the future.

6. Other Real Estate-Related Fees in Egypt (2025)

In addition to property tax, be aware of:

📌 Registration Fee (One-time):

• Approx. 1%–3% of the property price
• Paid when registering the sale contract or title deed

📌 Maintenance Fees:

• Applicable in gated communities or compounds
• Varies based on project and services included

📌 Capital Gains Tax (Not Currently Applied):

• As of 2025, Egypt does not impose a capital gains tax on property sales for individuals.
• However, legislation can change, so check with your lawyer before resale.

7. Property Tax for Investors and Rental Owners

If you rent out your property, your assessed rental value may be higher, increasing your tax liability. However:

• Rental income in Egypt is not taxed separately from the property tax unless it’s a commercial enterprise.
• Owners are encouraged to register leases officially to ensure tenant protection and enforceability.

Tip: Many landlords include the tax in their rental calculations, particularly in furnished, short-term units around Hurghada, Sahl Hasheesh, and El Gouna.

FAQs: Property Taxes in Egypt

Do foreigners pay the same property tax as Egyptians?
Yes. The tax is based on the property, not nationality. Foreign and local owners are treated equally.

How do I find out if my property is exempt?
You can request a tax evaluation report from the Real Estate Tax Authority or through your lawyer.

Can I dispute the assessed rental value?
Yes. You have the right to appeal the valuation if you believe it is inaccurate.

What happens if I don’t pay?
Unpaid property taxes may result in fines, interest, or difficulty transferring ownership later.

Final Thoughts: Understanding Property Tax in Egypt

The property tax system in Egypt remains investor-friendly, with low rates, wide exemptions, and manageable annual costs—even for foreign owners. For most buyers, especially those purchasing resort or residential homes, the tax bill is minimal compared to rental income or long-term appreciation.

Still, it’s important to work with a licensed real estate lawyer or tax advisor to confirm your obligations and avoid surprises.