Costs and Fees When Buying Property in Egypt: Taxes, Registration & Incidental Charges

When budgeting for a real estate acquisition in Egypt (including Hurghada), buyers must distinguish between statutory government taxes and fees versus contractual commercial costs.

Statutory government levies are strictly prescribed by Egyptian legislation, whereas commercial expenses (legal representation, brokerage commissions, compound maintenance reserves) are determined by market practice and the specific Sales and Purchase Agreement (SPA).

The Real Estate Disposal Tax (ضريبة التصرفات العقارية) is governed by Law No. 151 of 2026 (replacing Article 43 of Income Tax Law No. 91/2005, effective 29 July 2026):

• Tax Rate: 2.5% of the gross transaction value of the disposed property;

• Legal Taxpayer: Statutorily payable by the transferor / seller;

• Payment Window: Payable within 60 days of the transaction date;

• Registry Independence: State title registration by the buyer at the notary registry (Shahr al-Aqari) is legally decoupled from the seller tax settlement verification.

Real estate title registration in the Egyptian Public Notary Registry (الشهر العقاري — Shahr al-Aqari) operates under the 2022 registration framework, implementing rules, and Ministry of Justice guidance:

• Base registration fees scale from EGP 500 to a statutory cap of EGP 3,900 based on property surface area;

• Official registration application form fee is fixed at EGP 100;

• Additional cadastral survey fees (هيئة المساحة المصرية) may apply depending on property type and district;

• Judicial signature confirmation (صحة توقيع — Sahat Tawqee under Art. 45 of Evidence Law No. 25/1968): court filing fees and stamp duties are modest fixed costs settled directly at court.

Independent Legal Due Diligence: Fees for comprehensive title searches, building license verification, bilingual contract drafting, and closing representation are not state-regulated. In practice, conveyancers typically charge a fixed retainer or an indicative benchmark of around 1–2% of property value depending on transaction complexity.

Brokerage Commissions: Real estate broker commissions are contractual; allocation of payment (buyer, seller, developer) and the exact percentage vary by agreement and transaction structure. Buyers are advised to obtain written fee disclosure before commencing services. Indicative benchmarks around 2% for resale transactions represent example market conventions, not fixed rates.

Broker Regulation: Mandatory registration of real estate brokers is grounded in Law No. 120 of 1982 as amended by Law No. 21 of 2022; the 2026 regulatory updates reinforced compliance mechanisms, and the transitional grace period concluded in July 2026. Buyers should verify broker registration with GOEIC.

Maintenance Sinking Fund (Maintenance Reserve): In various resort compounds and residential developments, developers collect a one-time maintenance reserve deposit (in some projects around 8–10% of property price) dedicated to shared amenities (swimming pools, security, landscaping, building facades). Other developments utilize recurring monthly, quarterly, or annual service fees. Exact maintenance terms are defined in the SPA.

Utility Meter Transfers (Electricity & Water): Technical transfer or installation of electronic prepaid meters in the new owner name, with costs determined by the regional utility provider.

Annual Built Property Tax (Law No. 196 of 2008 as amended by Law No. 3 of 2026): The tax rate is 10% of the net annual rental value determined under built property tax assessment rules. Law No. 3 of 2026 raised the exemption threshold specifically for the taxpayer principal private family residence to net annual rental values below EGP 100,000. Second homes and resort properties do not receive this principal residence exemption and are taxed under general assessment rules.

International Banking & Foreign Exchange: SWIFT transfer charges, correspondent bank fees, and currency conversion margins. Buyers should confirm applicable wire fees with their sending and receiving financial institutions.

The following table illustrates estimated additional expenses for purchasing a completed secondary market apartment valued at $50,000 (approx. EGP 2.5 million). This calculation is purely illustrative: