Costs and expenses of purchasing and selling real estate

The transfer tax

The transfer tax is paid by the seller and is equal to 2.5 % of the selling price.

 

Property registration fee

Property registration fee depends on the size of the property:

• 100 sq. m – 500 EGP;
• 200 sq. m – 1000 EGP;
• 300 sq. m – 1500 EGP;
• 1000 sq. m – 2000 EGP.

Exchange rate November, 2008: ~ 5.5 USD.

 

Double Taxation Prevention Treaties

Egypt is a signatory to a Treaty for the Prevention of Double Taxation with countries all over the world. A Double Taxation Prevention Treaty, in principle, enables offsetting tax paid in one of 2 countries against the tax payable in the other, in this way preventing double taxation.

 

Disclaimer

Egyptian property market is young and taxation rules may be changed drastically. It is highly recommended to use independent professional advice.

 

Property investors in Egypt are responsible for taxes and fees indicated below:

Value Added Tax

There is no VAT in Egypt; however sales tax, which is 10 %, is applicable to all goods and services.

 

Corporate tax

The official tax on companies’ profit is 20 %.

 

Income Tax

Progressive taxation is applicable for incomes, the rates varies from 0 % to 20 %.

• Less than 5,000 EGP – 0 %;
• 5,000 EGP to 20,000 EGP – 10 %;
• 20,000 EGP to 40,000 EGP – 15 %;
• More than 40,000 EGP – 20 %.

Exchange rate November, 2008: ~ 5.5 USD.

 

Note: The information is for guidance only. It is recommended to use professional advice before taking practical tax decisions.