Property tax in Egypt for foreigners works on one simple principle: the annual built-property tax attaches to the unit, not to your passport. If you hold a flat, villa or chalet, whether you own it or, as in Sharm El Sheikh, hold it by long-term usufruct, you pay the same tax an Egyptian would pay on the same unit. What changed in 2026 is the main-home exemption, and that is the part second-home owners most often misread.
Below: the rate, who pays on a usufruct unit, why a holiday flat stays taxable, the payment calendar, appeals, and the other taxes a foreign owner meets. Everything is stated as of October 2026.
Property tax in Egypt for foreigners: how the annual tax works
The tax is the built-property tax under Law 196/2008, administered by the Real Estate Tax Authority (RTA). It is separate from income tax and VAT, which the Egyptian Tax Authority (ETA) handles.
The base is the unit's annual rental value as assessed for the tax, not the price you paid. The law takes a flat deduction off that value, 30% for residential units and 32% for non-residential ones, and charges 10% on what is left.
| Residential unit | Non-residential unit | |
|---|---|---|
| Starting point | Annual rental value | Annual rental value |
| Flat deduction | 30% | 32% |
| Tax on the remainder | 10% | 10% |
| Effective rate on the rental value | 7% | 6.8% |
| Cap on increases at revaluation | 30% | 45% |
The arithmetic, with a round figure chosen only to show the method (it is not an estimate for any Sharm unit):
| Illustration: a residential flat | EGP |
|---|---|
| Annual rental value (hypothetical) | 60,000 |
| Less the 30% deduction | 18,000 |
| Net annual rental value | 42,000 |
| Built-property tax at 10% | 4,200 a year |
What your own unit owes depends on the rental value assessed for it, so the RTA's notice matters more than any example.
Who pays property tax on a Sharm flat: owner, usufruct holder or tenant?
The RTA's rule names the owner or the usufruct holder as the taxpayer. A tenant is liable only up to the rent owed, and only after notice. A lease or a management agreement can say who bears the cost between the parties, but it does not change who the law names.
For foreigners in Sharm El Sheikh, the usufruct part is the one that matters. Since 1 April 2022, Presidential Decree 128/2022 has reserved ownership of land and buildings in Sharm El Sheikh, Dahab and the Gulf of Aqaba tourism sector for Egyptians and wholly Egyptian-owned entities. A foreign buyer there usually holds a long-term usufruct, with the term set by the contract and the approvals. The usufruct holder pays the built-property tax, as an owner would. "I only have the right to use it" is not a reason to skip the bill.
Two more points catch foreign owners out:
- Empty units pay. The tax applies to every unit, chalets and empty units included. A flat you use for six weeks a year is taxed on its full annual rental value.
- Your passport and residence permit do not change the tax. The rules turn on the unit and on who owns or holds it, not on where you live for the rest of the year.
If you are still choosing a unit, our guide to buying property in Sharm El Sheikh as a foreigner explains what a usufruct contract gives you and the approvals every dealing needs.
Is a second home or holiday flat exempt after the 2026 reform?
In most cases, no. In 2026 the Ministry of Finance and the RTA announced an exemption for a main home worth under about EGP 8m. A main home is the one you actually live in. Per the RTA, holiday and second homes are not a main residence, so they stay outside the exemption.
We cite the official statements rather than a law number, which we have not been able to confirm in an official source.
How that works out for typical foreign owners:
| Your situation | Main-home exemption? |
|---|---|
| Holiday flat in Sharm; your home is abroad | No: a holiday home is not a main residence |
| A second unit you let to tourists or keep as an investment | No: it is not your main home |
| The home you live in, worth under about EGP 8m | Yes, as announced by the Ministry of Finance and the RTA |
| The home you live in, worth more than about EGP 8m | Not covered by the exemption as announced |
| You live in Sharm most of the year, in a usufruct unit | It turns on the facts: check before you claim |
When is property tax due in Egypt, and how do you pay it?
Each year's tax falls due on 1 January and is paid in two instalments, by the end of June and by the end of December. The other dates to keep in view:
| Date | What happens |
|---|---|
| 1 January | The year's built-property tax falls due |
| By the end of June | First instalment |
| By the end of December | Second instalment |
| Within 60 days of notification | Last day to appeal an assessment |
| 1 January to 31 March | Individuals with rental income file their income tax return |
| Within 60 days of a sale or other disposal | 2.5% real-estate disposal tax |
| 31 December 2026 | Last day of the tax-dispute settlement under Law 152/2026 |
In practice, whether you pay from Sharm or from abroad, it comes down to four steps:
- Check how the unit is recorded. Make sure the RTA's records show the unit and the right taxpayer. For a Sharm usufruct, check whether it is recorded in your name as usufruct holder or still in the developer's.
- Read the valuation notice. It sets the rental value your tax is calculated on. If it looks wrong, the 60 days for an appeal run from notification.
- Pay each instalment in the taxpayer's name and keep the receipts. If you let the unit, the tax you paid is credited against the income tax on the rent. If you sell, a careful buyer will ask for the unit's tax history.
- Clear arrears before they grow. Unpaid tax carries late interest, and the 2026 waiver of that interest closed on 2 October 2026.
If you would rather not track all this yourself, our tax filing service for property owners and landlords covers the built-property tax and the rental income return, every year.
Can you appeal a property tax valuation in Egypt?
Yes. You can appeal within 60 days of being notified of the assessment. When values are revised, the increase is capped: the rental value of a residential unit can rise by at most 30%, and that of a non-residential unit by at most 45%.
What usually deserves a second look:
- whether the unit is classed as residential or non-residential, since both the deduction (30% or 32%) and the revaluation cap (30% or 45%) follow that class;
- whether an increase on revaluation stays within its cap;
- whether the assessment describes the unit you actually hold;
- whether the main-home exemption was claimed where it applies.
If the disagreement is about tax already assessed, the general tax-dispute settlement under Law 152/2026, which lists built-property tax among the taxes it covers, is open until 31 December 2026. The separate 2026 built-property settlement at 70% of the disputed tax closed on 2 October. Our tax inspection and dispute service handles settlement requests and appeals.
What other taxes do foreign property owners pay in Egypt?
Which other taxes apply depends on what you do with the unit.
| What you do | Tax | The rule, as of October 2026 |
|---|---|---|
| Hold the unit | Built-property tax | 10% of the annual rental value after 30% (residential) or 32% (non-residential); every unit, empty ones included |
| Let it | Income tax on rent | Actual rent minus 50%, then the personal income tax brackets (0% to 27.5%); built-property tax paid is credited against it |
| Sell it, or grant a usufruct | Real-estate disposal tax | 2.5% of the gross value, with no deductions; payable within 60 days |
| Give it away or leave it to heirs | No inheritance, gift or net-wealth tax | The disposal tax still reaches a gift or will to anyone other than parents, spouses or children, and a later disposal by the heirs |
Letting. For built property let under the Civil Code and for furnished units, the taxable amount is the actual rent minus 50%, and the result goes through the brackets. The old option to be taxed on actual costs (Article 40) was repealed in 2008, whatever older websites say. Built-property tax paid on the unit is credited against the income tax on that rent (Article 45). Individuals file between 1 January and 31 March. The lower bands, including 0% on the first EGP 40,000, are withdrawn once net income passes EGP 600,000. Letting to tourists also needs the Ministry of Tourism's holiday-home licence: an inspection fee and a first-licence fee, then a yearly renewal fee. Our guide to renting out your apartment in Sharm El Sheikh covers the licence and the yearly filing.
Selling. The real-estate disposal tax (Income Tax Law, as restated by Law 151/2026) is 2.5% of the gross value of built property or building land, with no deductions. Taxable disposals include a sale, the grant of a usufruct and a lease of more than 50 years, which is why it matters for Sharm usufruct units. Transfers to parents, spouses and children are excluded. When a company or a sole proprietorship sells, the result is taxed as business income instead, and that needs its own calculation. More in our guide to selling your apartment in Egypt as a foreigner.
Inheritance and gifts. Egypt has no inheritance, gift or net-wealth tax. That does not make every transfer tax-free: a gift or will in favour of anyone other than parents, spouses or children is a taxable disposal at 2.5%, and so is a later disposal by the heirs.
Does a home in Sharm make you tax resident in Egypt?
It can be part of the answer, so check rather than assume. For income tax, you are resident in Egypt if you have a permanent home here or spend more than 183 days here within 12 months. Residents are taxed on Egyptian income, and on foreign income only if their centre of activity is in Egypt.
If you split the year between Sharm and home, both countries may see you as resident. Egypt's tax treaties with Italy, Russia, the United Kingdom, Germany, Ukraine, Poland and others are where that answer starts. The built-property tax is due either way: it follows the unit, not your residence.
