Understanding the Costs of Buying Property in Egypt

The advertised property price is only the starting point of a realistic buying budget in Egypt. Before you reserve a home, especially if you are buying from abroad, build a written cost schedule that separates the property price from transaction costs, payment costs, handover and setup costs, and ongoing ownership expenses.

For a Hurghada or Red Sea buyer, the exact total depends on the property, whether it is new-build or resale, the ownership and registration route, the contract, and the services needed to complete the purchase. There is no reliable universal percentage that can be added to every asking price.

Important: This article is general information, not legal, tax, financial, or investment advice. Ask an independent Egyptian lawyer and, where appropriate, a tax adviser to confirm the costs and obligations for the exact property and transaction before you pay a reservation or deposit.

What should a realistic property budget include?

A useful budget has four layers:

Purchase and payment: the agreed price, reservation amount, deposit, instalments, and any contractually agreed payment charges.

Transaction and verification: legal review, document work, translation, authentication, registration or notarisation, and authority procedures.

Handover and setup: inspection or snagging, utilities, furnishing, appliances, and any maintenance contribution.

Ongoing ownership: service charges, property-related tax where applicable, maintenance, and management while you are away.

Keeping these layers separate makes it easier to compare properties with similar asking prices but different total commitments.

How should you read the property price and payment schedule?

Ask for the complete payment schedule in writing before you reserve. For a new-build property, identify every instalment, its due date, the currency, any payment due at handover, late-payment clauses, cancellation terms, and refund conditions.

If a plan is advertised as “interest-free” or “extended,” compare the actual total contractual amount rather than only the instalment. Do not assume the cash price and instalment price are identical.

For a resale, clarify the amount payable to the seller, any balance still owed to a developer or building management, and whether service charges or transfer requirements must be cleared before handover.

What should you confirm about a reservation or deposit?

Before paying, confirm the amount and currency, who receives the money, whether it is refundable, the deadline for signing the main contract, what happens if legal review identifies a problem, whether the payment is credited against the purchase price, and what receipt you will receive.

If you are buying remotely, independently verify payment instructions rather than relying on bank details supplied only through an informal message.

What legal and document costs can arise?

Independent legal review should be part of the buying budget. The work may include reviewing seller authority, ownership or land documents, project approvals, the unit description, the contract, payment terms, outstanding obligations, registration route, and any power of attorney.

International buyers may also need translation, authentication, notarisation, or representation. Request a written scope and fee from your lawyer.

GAFI’s current guidance identifies the Ministry of Justice’s Real Estate Registration and Notarization Department as the competent authority for the non-Egyptian ownership framework and notes specific treatment for residential units in Hurghada and the Red Sea tourist area, subject to relevant approvals. This is why the procedure and related costs should be confirmed for the exact property.

How much are registration and official fees?

Do not confuse a published registration fee with the total cost of completing the legal and administrative process.

The Official Egyptian Real Estate Platform currently publishes standard apartment-registration fee bands by unit size: EGP 500 up to 100 square metres, EGP 1,000 from 101 to 200 square metres, EGP 1,500 from 201 to 300 square metres, and EGP 2,000 above 300 square metres.

Those figures describe the standard registration charge, not the complete cost of every registration. Other document, mapping, legal, translation, authority, or project-specific costs may apply.

Ask your lawyer to list the procedures that apply to the unit, who pays each cost, and when it becomes due.

What is the 2.5% real estate transactions tax?

This is one of the most misunderstood property costs in Egypt.

Article 42 of Egypt’s Income Tax Law, as amended, imposes tax on qualifying real estate disposals and places the obligation to pay on the disposer — normally the seller — rather than automatically treating it as a statutory buyer surcharge.

In July 2026, the Egyptian Tax Authority stated that the rate for non-trader individuals is unified at 2.5% and that the payment period has been extended to 60 days. Because implementation can change, the current position should still be checked at the time of the transaction.

For the buyer, the key questions are whether proof of payment or clearance is needed and whether the contract attempts to shift any economic cost between the parties.

What payment and currency costs can an international buyer face?

A buyer sending money from abroad should budget for foreign-exchange conversion, outgoing bank charges, intermediary-bank fees, receiving-bank charges, and repeated transfer costs where a property is paid by instalments.

Ask which currency appears in the contract, which account is authorised to receive payment, and what proof you will receive. When comparing payment plans, compare the likely payment cost across the whole schedule, not only the first transfer.

What extra costs differ between new-build and resale property?

For a new-build home, check whether the price includes finishing, air conditioning, kitchen units, appliances, utility meters or connections, maintenance deposits, parking, and handover-related payments.

For a resale, check for outstanding service charges, utility balances, transfer or assignment procedures, included furniture, repairs, and the condition of major equipment. The contract should clearly identify what stays with the unit.

A lower purchase price can therefore create a higher immediate cash requirement if setup, repair, or transfer work remains.

What should you budget for at handover?

Decide whether you need an independent inspection or snagging check. Confirm the status of electricity, water, internet and other services, whether meters are installed, and whether activation or connection payments remain.

Then budget separately for essential setup such as appliances, lighting, air conditioning, furniture and household basics. For a home that will be empty between visits, also decide who will hold keys, inspect the unit, pay local bills and arrange repairs.

What ongoing ownership costs should you include?

Ask for the current service charge or community fee, what it covers, how often it is collected, how increases are decided, and whether there is an outstanding balance attached to the unit.

Egypt also has an annual tax on built real estate. The Real Estate Tax Authority states that the taxpayer is generally the owner, usufruct holder or person entitled to exploit the property, and that the rate is 10% of assessed net annual rental value after the statutory maintenance deduction. Exemptions depend on the property and its use. A Red Sea holiday or second home should not simply be assumed to qualify for a main-residence exemption.

If you intend to rent, keep rental operating costs separate from the purchase budget. Management, cleaning, repairs, marketing, tax and compliance are operating costs, not guaranteed deductions from future income.

How can you build a cost schedule before you reserve?

Create one schedule with five columns: cost item, confirmed or estimated amount, recipient, due date, and whether it is one-time, recurring or refundable.

Mark every line as confirmed, estimated, or still to be verified. Before reserving, it should cover the property price and instalments, legal review, official procedures, payment and currency costs, handover obligations, service charges, setup costs, and known ongoing tax or management obligations.

The aim is to make the decision on the total financial commitment you can identify today rather than on the advertised price alone.

Frequently asked questions

Compare the full cost before you reserve If you are comparing homes in Hurghada or elsewhere on Egypt’s Red Sea coast, ask for a property-specific cost schedule before you compare payment plans. Galeria can help you organise the commercial information around a shortlist, while independent legal and tax professionals should confirm the legal, registration and tax obligations for the transaction.