Taxation

Egypt is a low tax investment destination.

Overview of Egyptian Tax System:

Egyptian income tax Individual income tax rates in Egypt are progressive, up to 20%. Income tax is calculated on the gross rent after deduction of income-generating expenses.

Real Estate Tax:

A recent real estate tax was issued in June 2008. According to the law there is a tax exemption for properties which are valued under 500,000.00 EGP, as well as properties with an annual rental income of less than 6,000.00 EGP are tax exempt. Properties valued above that figure will be taxed on a rate of 10% of a property’s annual rental value after deducting a maintenance cost as a percentage of the rental value (30% for residential units and 32% for commercial units).

The registration cost:

registration fees are caped at 2,000.00 EGP. The notary fees amount to around 1,500.00 EGP. Investors should budget a total of around 2% of the purchase price as registration cost.

Capital Gains tax:

Tthere is no capital gains tax payable on real estate in Egypt. When re-selling properties in Egypt, a tax of 2.5% is levied on the sale price.

Inheritance Tax:

There are no Inheritance Taxes to pay in Egypt. However, if you are a British resident, you may have to pay UK inheritance tax based on your worldwide assets, which incorporates Egypt. It is recommendable to consult a tax adviser or the UK Inland Revenue for more information.

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