Guide to Property Taxes in Egypt
Guide to Property Taxes in Egypt | 2025-09-27

Property Taxes in Egypt

Guide to Property Taxes in Egypt

Q1) Is there a tax required from the property owner in Egypt and what is its value?

Q2) How is the 10% tax rate applied to the total annual rental value of the property?

Q3) What is the penalty for not paying property ownership tax?

Q4) Are there any cases of exemption from property ownership tax?

Q5) Is there any difference in the value of property ownership tax whether the property is residential or commercial?

Q6) Is it permissible to appeal the assessment of the annual value of property ownership tax?

Q7) Are there any other taxes to be considered when owning property in Egypt?

 

 Q1) Is there a tax required from the property owner in Egypt and what is its value?

A1) Yes, there is a tax of 10% of the total annual rental value of the property, which the owner must pay each year to the local office of the Egyptian Real Estate Tax Authority in the area where the property is located.
For more information visit the English website of the Egyptian Real Estate Tax Authority by the following link: https://www.rta.gov.eg/en

 

 

 

 

 

 

Q2) How is the 10% tax rate applied to the total annual rental value of the property?

 A2) The tax is not applied directly to the gross rental value, but is calculated on the net rental value after deducting certain expenses.
We will explain it in the following example:

Calculation steps:

  1. Determining the annual rental value:
    • This value is calculated based on the market rental price and is estimated by the Real Estate Tax Authority according to specific criteria and published prices for each area and governorate.
    • For example, if the value is set at 50,000 EGP annually.
  2. Deduction for maintenance and expenses:
    • 30% of this value is deducted to cover maintenance and depreciation expenses.
    • 50,000 × 30% = 15,000
  3. Calculating the net taxable value:
    • After deduction, the net becomes:
      50,000 – 15,000 = 35,000
    •  
  4. Applying the tax rate:
    • After the three previous steps, the 10% rate is applied to this net value. That is:
      35,000 × 10% = 3,500

 So the tax due on a property with an annual rent of 50,000 EGP is only 3,500 EGP.

Note: This tax is imposed on all types of properties (residential, commercial, administrative) and is fixed regardless of whether the property is rented or not.

 

Reference: Text of Article 12 of Law No. 196 of 2008 on Real Estate Tax Law.

 

Q3) What is the penalty for not paying property ownership tax?

A3) A delay fine equal to the annual interest rate announced by the Central Bank of Egypt (20%) in addition to 2% of the amount due as tax.
Reference: Text of Article 27 of Law No. 196 of 2008.

 

 

Q4) Are there any cases of exemption from property ownership tax?

 A4) Yes, there is a partial exemption from the tax as follows:
The property unit that the owner takes as his main private residence for himself and his family, whose net annual rental value is less than 24,000 EGP (twenty-four thousand pounds), shall be exempt, provided that any value exceeding that amount is subject to the tax. For the application of this provision, the family includes the owner, his spouse, and minor children.
Reference: Text of Article 18 of Law No. 196 of 2008 on Real Estate Tax Law.

 Q5) Is there any difference in the value of property ownership tax whether the property is residential or commercial?

A5) There is no difference in the value of property ownership tax. The tax rate is fixed and unified at 10% of the annual net rental income (after deducting 30% expenses).

Q6) Is it permissible to appeal the assessment of the annual value of property ownership tax?

A6) An appeal can be submitted within 60 days following the date of notification of the tax value.
The appeal is submitted to the local office of the Real Estate Tax Authority in whose district the property is located. The appellant receives a receipt proving the submission of the appeal and the payment of the fees.
Reference: Article 16 of Law No. 196 of 2008 on Real Estate Tax Law.

 

 

 

 

 

 

 

Q7) Are there any other taxes to be considered when owning property in Egypt?

 A7) Yes, there is the real estate disposal tax, which is imposed on real estate sales when signing any property purchase contract. The seller bears this tax even if the contract states otherwise.
The value of this tax is 2.5% of the property value.

· Calculation method: 2.5% of the sale contract value or the market value of the property, whichever is higher.
Reference: Text of Article 42/1 of Law No. 91 of 2005 on Income Tax Law.

For further information please do not hesitate to contact us.

 Best Regards,

Dr. Ahmed Said

Founder & Managing Partner

L.C.C   Law Firm

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