Costs and Fees of Buying Property in Egypt

Typical transaction costs

As a rough guide, total transaction costs for a standard residential purchase usually fall around 3% to 6% of the price, though they can be lower or higher depending on the deal.

• Registration fees: typically around 1% to 3% of the property value, paid by the buyer (some caps can apply).
• Real estate disposal (transfer) tax: 2.5% of the sale value — legally the seller’s responsibility, but often negotiated.
• Stamp duty: a small charge of roughly 0.5% on the sale documents.
• Legal fees: commonly around 1% to 2% of the value for an independent lawyer.
• Agent commission: typically around 2% where a buyer-side fee applies.

Annual and ongoing costs

Annual real estate tax is charged at 10% of the property’s net annual rental value after a standard deduction, and properties with a low assessed rental value are exempt — so for many modest homes the annual tax is small or zero. On top of that, compounds and managed buildings usually charge maintenance or service fees for security, landscaping and shared facilities.

Costs that catch buyers out

• Utility connections for new or unfinished units can run into tens of thousands of pounds.
• Finishing an unfinished unit is a major cost, charged per square meter.
• VAT does not normally apply to a residential sale, but related services such as finishing, design and legal work can carry VAT.
• For buyers transferring money from abroad, currency exchange and transfer costs and exchange-rate movements can be significant.

Frequently asked questions

How much are the total costs of buying property in Egypt?

For a standard residential purchase, total fees and taxes usually come to around 3% to 6% of the price, covering registration, taxes, and legal and agent fees, though simple cash deals can be lower.

Who pays the property transfer tax in Egypt?

The 2.5% real estate disposal tax is legally the seller’s responsibility, but who actually bears it is often negotiated as part of the deal, so confirm it in writing.

Is there an annual property tax in Egypt?

Yes, an annual real estate tax of 10% of the net rental value applies, but properties with a low assessed rental value are exempt, so many modest homes pay little or nothing.

Do buyers pay capital gains tax when selling property in Egypt?

Individuals selling personal real estate are generally subject to the 2.5% disposal tax rather than a capital gains tax on profit. Always confirm your situation with a tax professional.