Egypt is one of the few countries where the state takes almost nothing from a property buyer. The fee for registering a purchase is capped at EGP 3,900, roughly $78, and it does not depend on the price of the property. The real costs sit elsewhere: in the developer's contract, at the bank and on resale.
Let us go through it in order: who pays what at the deal, every year, and on the way out.
Contents:
- What the state charges for registering a purchase
- How the money has to be transferred
- Title registration, where most problems begin
- The annual property tax
- Compound service charges
- Tax on rental income
- What the seller pays on resale
- Working out the deal budget
- Who this arithmetic will not suit
- What changed in the calculations by August 2026
- Frequently asked questions
What the state charges for registering a purchase
The registration fee is a state charge for entering the transaction into the public register. Registration confirms that you are the owner, and without it your title to the flat is not legally established.
Until 2022 the fee was calculated as a percentage of the property value, so the more expensive the flat, the more the paperwork cost. Law No. 9 of 2022 replaced the percentage with a fixed scale capped at EGP 3,900. The state will not charge more than that under any circumstances: the fee on a studio and on a villa is the same.
The comparison with neighbouring markets shows how low this is.
| Country | State fee on purchase | On a $150,000 property |
|---|---|---|
| Egypt | fixed, no more than EGP 3,900 | about $78 |
| Turkey | 4% of the cadastral value | about $6,000 |
| Spain | transfer tax, 6–10% depending on the region | $9,000–15,000 |
The gap at the entry point runs into dozens of times.
How the money has to be transferred
A foreign buyer pays for the purchase by transferring foreign currency from abroad through an Egyptian bank. This is a condition of the deal rather than a bank preference: without the banking record the contract will not be registered, and such a purchase will not support a residence permit application either.
That means the price of the property is not the whole outlay. On top of it come the transfer costs: the sending bank's fee, the receiving bank's fee and losses on conversion. Banks sometimes ask for proof of the source of funds, which costs time rather than money.
A simple way to plan for it: every percentage point of banking costs on a $150,000 transfer is $1,500. Tariffs differ from bank to bank, so check yours before the deal rather than on payment day. This money leaves your account before the seller receives the first instalment, and it is not part of the purchase price.
Title registration, where most problems begin
The Egyptian market has long run on two types of contract. One is registered with the Real Estate Publicity Department, known locally as Shahr Aqari, and gives full ownership. The other is an urfi, a simple written agreement between the parties, which looks convincing on paper but offers weak legal protection.
On the resale market in older districts the share of unregistered properties is still high. A foreign buyer who plans to sell later or to apply for residency needs the first type, and checking the chain of previous transactions is a necessary part of the lawyer's work.
Checking the chain of past transactions on the Egyptian resale market takes longer than the deal itself, and there is no sense in cutting corners at this stage: an unregistered property can neither be resold properly nor submitted with a residency application, say lawyers who handle purchases by foreign buyers.
Legal support costs $800–2,000 depending on the complexity of the property. On a new build from a major developer the checks are shorter and cheaper; on a resale flat in Heliopolis or Maadi they take longer.
The annual property tax
Locally it is called awayed. It is calculated not from the price of the property but from its annual rental value, meaning the sum the flat would bring in if it were let.
After the 2026 amendments the calculation works as follows:
- The tax authority establishes the annual rental value of the property.
- Statutory expenses are deducted: 30% for residential properties and 32% for non-residential ones.
- A 10% rate is applied to the balance.
What actually changed in spring 2026. Law No. 3 of 2026, published on 2 April, amended property tax law 196/2008 and raised the exemption threshold from EGP 24,000 of annual rental value to EGP 100,000. In market terms that corresponds roughly to a property worth EGP 8 million. The rate itself and the deductions stayed as they were; only the threshold moved.
There is an important limit to the relief: it applies only to the single main home of the taxpayer, their spouse and minor children. A second property, a house on the coast or an investment flat let out to tenants is taxed in full, with no threshold at all.
For a foreign buyer purchasing a flat in Egypt to let rather than to move in, the conclusion is simple: the tax applies from the first unit of rental value, and the relief does not cover it. In February 2026 the tax authority estimated that after the amendments about 2 million properties out of 55 million remain liable, and investment housing sits squarely among those 2 million.
After the amendments many assume the new exemption threshold applies to any flat. It is designed only for a family's single home: an investment property pays the tax in full, say tax advisers working with non-residents.
Compound service charges
This is the cost buyers most often leave out of their budget, even though it can outweigh every tax combined.
Egyptian developers charge separately for maintenance, and in the contract it appears as its own line, apart from the price. The arrangements vary: some take a one-off payment on handover, some charge annually for grounds, security, the pool and landscaping, and some do both.
There is no market standard, the amounts differ from developer to developer, and marketing materials almost never show them. What to establish before signing:
- the size of the payment and its type, whether one-off on handover or annual;
- what the charge covers and what is billed separately;
- the indexation terms: by how much and how often the sum can rise;
- who manages the grounds once the project is complete, the developer or a separate company;
- what happens to the payment when the flat is resold.
The more premium the compound, the heavier this line becomes. In gated projects in the New Administrative Capital and New Cairo service charges are noticeably higher than in ordinary city buildings in Nasr City.
Tax on rental income
If the flat is let, the income from it is subject to income tax, separately from awayed.
The calculation works like this: under article 39 of the income tax law, 50% of the rental revenue is deducted as statutory expenses, and the ordinary progressive scale applies to the remaining half. Rates are the same for foreigners and Egyptians, as the Egyptian system adds no surcharge based on nationality.
This matters when you assess returns. The average gross rental yield in Egypt in the second quarter of 2026 was 7.61% according to Global Property Guide, a high level for the region. But gross yield is measured before costs, and rather less reaches your pocket: minus income tax, minus awayed, minus the compound service charge, minus void periods between tenants, minus the management company's fee if you are not letting the flat yourself.
What the seller pays on resale
When property in Egypt is sold, the tax falls on the seller rather than the buyer. It is called the real estate disposal tax and the rate is 2.5%.
The key feature is that it is charged on the full sale price, not on the profit. Buy a flat for $150,000, sell it for the same $150,000, and you will pay $3,750 although you made nothing. Selling at a loss does not remove the tax either.
Payment is due within 60 days of the transaction. Before the 2026 amendments the deadline was 30 days.
The tax does not concern buyers directly, but it is worth building into the calculation from the start: it determines how far prices must rise before a resale turns a profit.
Working out the deal budget
Take a flat in a New Cairo compound priced at $150,000.
| Cost item | Amount | Comment |
|---|---|---|
| Registration fee | about $78 | fixed, independent of price |
| Legal support | $800–2,000 | higher on the resale market |
| Bank transfer costs | depends on the bank | every percentage point is $1,500 |
| Compound service charge | set by the developer | check the contract |
| Tax on resale | $3,750 | 2.5% of the sale price, paid by the seller |
The predictable part is modest: the fee and the lawyer together rarely exceed 1.5% of the price. The unpredictable part is the service charge, and until you have seen it written into the contract the budget for the deal is not complete.
Who this arithmetic will not suit
Anyone who counts returns in dollars and is not prepared for currency risk. The asset is denominated in pounds, the rent is collected in pounds, and the pound has been through several devaluations in recent years, trading at around 50 to the dollar in August 2026. Growth in pound terms can be swallowed whole by the exchange rate.
Anyone planning to hold the property for a year or two. Entry costs, the service charge and 2.5% on the full sale price at the exit mean the market has to rise substantially just to bring you back to zero.
Anyone who needs a mortgage. Egyptian banks can lend to non-residents in theory, but in practice they rarely do. The working option is a developer payment plan: 5–10% down and terms of up to 10 years. It carries no interest, but it ties the buyer to one project and its completion schedule.
What changed in the calculations by August 2026
Three things that make older cost guides unreliable.
Since 2022 registration has stopped being a percentage and become a fixed fee, so comparisons with Turkey and Europe on that line no longer mean anything.
The exemption threshold for the annual tax has risen fourfold, from EGP 24,000 to EGP 100,000 of annual rental value. It applies only to a family's main home, however, so an investment purchase gains nothing from it.
Since July 2023 the limits on the number and area of properties a foreigner may own have been lifted. There used to be a ceiling of two properties; it is gone, and buying a portfolio has become possible.
Frequently asked questions
How much does it cost to register a purchase in Egypt?
No more than EGP 3,900, about $78. The fee is fixed under Law No. 9 of 2022 and does not depend on the price of the property: a studio and a villa cost the same to register.
Do foreigners pay more tax than Egyptian citizens?
No. The rates for the annual tax, the disposal tax and tax on rental income are the same for everyone, and the Egyptian system applies no surcharge based on nationality.
Is the annual tax payable on an investment flat?
Yes. The EGP 100,000 exemption threshold applies only to the single main home of the taxpayer and their family. A second property or a flat let to tenants is taxed in full.
Can a flat be bought with cash?
The sale itself may go ahead, but registering the title and applying for residency both require a foreign currency transfer from abroad through an Egyptian bank. Without that banking record the purchase delivers neither.
How much does the seller pay on resale?
2.5% of the sale price, due within 60 days of the transaction. The tax is charged on the full amount rather than the profit, so it applies even when the property is sold at a loss.
