Understanding Property Taxes and Fees When Buying in Egypt – 2025
When buying property in Egypt, it’s essential to understand the various taxes, registration fees, and additional costs involved in the process. This 2025 guide will help buyers and investors prepare financially and navigate Egypt’s real estate market confidently.
Property Taxes in Egypt
- Egypt imposes an annual property tax on built properties based on the estimated rental value.
- Properties with a rental value below EGP 24,000 annually are exempt from property tax.
- The standard property tax rate is 10% of the rental value after allowable deductions.
- Read: Egypt Real Estate Market Insights
Registration Fees and Notary Costs
- Property registration fees in Egypt typically range from 1% to 3% of the property’s value.
- Notary fees and administrative costs may apply depending on the property type and location.
- Ensure all payments are documented for future legal reference.
Other Costs When Buying Property
- Legal Fees: Hiring a lawyer for due diligence and contract review is recommended and incurs additional fees.
- Agency Fees: Real estate agents may charge 1-2% of the property price as commission.
- Utilities and Connection Fees: New properties may require payment for utility connections, including electricity and water.
Are There Taxes When Selling Property in Egypt?
- Sellers may be subject to a real estate disposal tax, depending on property type and ownership period.
- It is advisable to consult a tax advisor to understand any applicable taxes when selling.
- Learn more: Legal Checklist for Selling Property in Egypt
Tips for Managing Costs When Buying Property
- Prepare a clear budget including property price, taxes, fees, and potential renovation costs.
- Request detailed payment breakdowns from agents and developers.
- Retain all receipts and documents for registration and legal purposes.
- Factor in annual property tax as part of your ongoing property expenses.
FAQ – Property Taxes and Fees in Egypt
- Is there a property tax in Egypt? Yes, Egypt charges an annual property tax on built properties above a certain rental value threshold.
- What are the registration fees for buying property? Typically between 1-3% of the property’s value.
- Are there hidden costs when buying property? Buyers should account for legal fees, agency fees, and utility connection costs.
Conclusion
Understanding the taxes and fees involved when buying property in Egypt will help you budget effectively and avoid surprises during your investment process in 2025. By preparing in advance, working with professionals, and keeping clear records, you can ensure a smooth and transparent property purchase in Egypt.
