Taxes and Costs When Buying Property in Hurghada

Real estate investment in Hurghada is an attractive opportunity for those looking to generate rental income or own a home in one of Egypt's most popular resort destinations. With well-developed infrastructure, a pleasant climate, and growing appeal among tourists, the city offers strong investment potential. However, if you're planning to buy property in Hurghada, it's essential to account for all applicable taxes and additional costs from the outset.

Taxes When Buying Property in Hurghada

Those planning a real estate investment in Hurghada should be aware of several types of taxes and fees. While Egypt offers favorable conditions for foreign investors, taxation still plays an important role in the process.

Property Transfer Tax

The property transfer tax is one of the primary costs associated with any investment in Hurghada. It amounts to 3% of the property value stated in the purchase agreement and is paid by the buyer. This tax applies to all transactions — for both Egyptian nationals and foreign investors. Factor it into your budget calculations early to avoid surprises.

Property Tax

Once you buy property in Hurghada and become its owner, you will be subject to an annual property tax. It is calculated based on the value of the land and property as recorded in the registration documents, and amounts to 10% of the annual rental income generated. It's worth noting that this tax only applies when rental income is being received.

Rental Income Tax

If you plan to rent out your property, your investment in Hurghada will also be subject to rental income tax, set at 25% of the income received from letting the property. Owners earning less than 3,000 Egyptian pounds per month (approximately $190) are eligible for a reduced rate. Individuals may also deduct expenses related to property maintenance and repairs, which can help lower the taxable base.

Other Costs When Buying Property

Beyond taxes, a real estate investment in Hurghada comes with a number of additional expenses:

• Real estate agent commission — 3–5% of the property value. An agent helps identify suitable options and ensures the transaction is legally sound.
• Legal fees — $500 to $2,000, depending on the complexity of the deal. A lawyer reviews documentation, confirms the legitimacy of the purchase, and assists with property registration.
• Registration fees — mandatory charges for recording ownership with the local land authority.

With the right approach and a thorough understanding of each stage, it's entirely possible to manage costs effectively and make your investment in Hurghada both profitable and secure. Careful budget planning that accounts for all taxes and fees is the foundation of a successful transaction.