Egypt real estate tax for foreigners.

Egypt levies five distinct taxes on real estate, each governed by its own statute. For foreign buyers in El Gouna, Hurghada, and other Red Sea destinations, the effective tax burden is modest by European standards — but the rules differ enough that buyers regularly misjudge them. This guide breaks down each tax with citation to the underlying law and worked examples.

The five taxes that apply to foreign property owners are:

• 1Property registration tax (Rasoom Al-Naql) — 2.5 percent of registered sale value, paid once at purchase, governed by the Egyptian Real Estate Registry framework.
• 2Capital gains tax — 2.5 percent of gross sale value on resale, paid by the seller (the same nominal rate as the registration transfer fee).
• 3Annual property tax (Dareebet Al-Amlaak) — 10 percent of imputed annual rental value, after a 2,000,000 EGP rental-value exemption, per Property Tax Law 196/2008.
• 4Rental income tax — progressive income-tax rates from 0 to 27.5 percent under Income Tax Law 91/2005, applied to rental income heads.
• 5Stamp duty — 0.5 percent of contract value on real estate transactions per Stamp Duty Law 111/1980.

Notarial and registry fees of approximately 1 percent and 0.5 percent respectively are charged on top, plus the optional agent commission (2-3 percent). Combined at-purchase costs typically run 5-8 percent above the headline price.

Disclaimer: Tax law changes regularly and individual circumstances vary. The information here is a starting point for foreign buyers researching Egyptian property tax. Consult a qualified Egyptian tax advisor or accountant before making decisions that depend on specific rates or exemptions. Double-tax treaty interpretations in particular require professional review for your home-country jurisdiction.

The property registration tax — known formally as Rasoom Al-Naql — is the main government tax on property transactions in Egypt. It is paid once, at purchase, when the contract is registered with the Egyptian Real Estate Registry. The rate is 2.5 percent of the registered sale value.

In Egyptian practice, the registered value used for tax purposes is often lower than the actual sale price agreed between buyer and seller. This is a long-standing convention in resort areas including El Gouna and is tolerated by the tax authorities. The buyer pays the registration tax on the registered value, with the remainder of the purchase price paid separately.

For example, on a USD 200,000 villa with a registered value of USD 120,000: - Registration tax: 2.5% × USD 120,000 = USD 3,000 - Notary fees (approximately 1%): USD 1,200 - Combined at-registration cost: approximately USD 4,200

If the full sale price had been registered, the tax would be USD 5,000 and notary fees USD 2,000, for a combined cost of USD 7,000. The lower registered value saves approximately USD 2,800 in this scenario.

Registration tax is paid in Egyptian pounds at the prevailing exchange rate on registration day. The payment must be settled before the title deed is issued, which means foreign buyers typically convert from USD or EUR to EGP shortly before registration completes. Your lawyer or notary handles the conversion and payment to the Registry.

Ask your agent what the typical registered-to-actual ratio is for the specific property you are buying. The ratio varies by compound, seller, and developer. In El Gouna's main Marina compounds, ratios of 50-65 percent are common for resale transactions. New developer inventory is sometimes registered closer to the full sale price.

The registration tax is non-refundable. If your purchase falls through after registration begins, you lose the tax already paid.

When you sell Egyptian property as a foreign owner, you pay capital gains tax at 2.5 percent of the gross sale value — not the gain. This rate applies regardless of holding period, with no graduated rate for short versus long-term holdings. The tax is settled at the Egyptian Real Estate Registry when the new title is registered.

The 2.5 percent is calculated on the gross sale value, not the difference between your purchase price and sale price. This is unusual compared to most European systems, which tax the gain. For Egyptian foreign-owner transactions, the gross-value method produces a relatively predictable bill: a USD 250,000 sale incurs approximately USD 6,250 capital gains tax irrespective of how much you paid originally.

Law 30 of 2023 introduced a reinvestment relief mechanism that may exempt 50 percent of capital gains if you reinvest in another Egyptian property within two years of the original sale. The relief is conditional: the reinvested amount must equal or exceed the gain on the original sale, and the new property must be registered in your name within the two-year window.

In practice, the relief works best for buyers upgrading within El Gouna (selling a Marina apartment to buy a West Golf villa) or moving between Egyptian resort areas (El Gouna to Sahl Hasheesh, for example). Your lawyer should confirm whether the relief applies to your specific situation and document the reinvestment timeline in writing.

The Egyptian Real Estate Registry withholds the capital gains tax at registration. The seller receives the net sale proceeds after withholding. There is no separate tax return for capital gains on Egyptian property sales — the withholding constitutes final payment for non-residents.

European foreign owners with double-tax treaty protections (Netherlands, Germany, UK, France, Italy, Belgium) avoid being taxed twice on the same gain. The Egyptian 2.5 percent is creditable against home-country capital gains tax under most treaties. Document the Egyptian tax paid via Registry receipt — this is the evidence your home tax authority needs to apply the foreign tax credit.

Disclaimer: Treaty interactions vary by individual circumstance and home-country residence status. Verify with a tax advisor in your home country before assuming credit applies. Reinvestment relief eligibility requires professional review of the original purchase, the sale terms, and the planned reinvestment.

Egypt's annual property tax — Dareebet Al-Amlaak — is levied at 10 percent of the imputed annual rental value of the property, after a generous exemption threshold. The tax is assessed by the Egyptian Tax Authority on registered cadastral values that are typically below market rents, keeping the practical burden modest for most foreign owners.

The annual property tax is governed by Property Tax Law 196 of 2008. The law provides:

• A 10 percent rate on imputed annual rental value
• A 2,000,000 EGP rental-value exemption per residential unit used as primary residence
• A 1,200 EGP annual exemption on imputed rental value for non-primary residences below specific thresholds
• Bi-annual revaluations of cadastral values (often delayed in practice)

For most El Gouna residential properties, the imputed rental value used by the Tax Authority is significantly below actual market rents. A USD 250,000 Marina apartment may have an imputed annual rental value of EGP 50,000-80,000, leading to an annual property tax of EGP 5,000-8,000 — approximately USD 100-160 per year at 2026 exchange rates.

The property tax is the owner's responsibility. Foreign owners receive an annual assessment notice from the Tax Authority, usually delivered through the property-management company or the El Gouna Resorts administration. Payment is due in two installments (June and December) but is commonly settled annually in a single payment.

For foreign owners who do not visit Egypt regularly, the property-management company typically handles assessment receipt and payment on the owner's behalf. Fees for this service run USD 20-40 per year.

• Primary residence exemption: if you are an Egyptian tax resident using the property as your primary home, the first 2,000,000 EGP of imputed rental value is exempt. For most properties, this exempts the entire tax. Foreign owners not resident in Egypt do not qualify for the primary-residence exemption.
• Off-plan exemption: properties under construction are exempt until completion certificate is issued.
• Vacancy exemption: unoccupied properties may qualify for reduced rates in some governorates, though enforcement varies.

Most foreign owners of mid-range El Gouna properties pay USD 200-600 per year in annual property tax. The amount fluctuates with EGP exchange rate movements but stays modest in USD terms. The annual notice arrives in Arabic; your property-management company or lawyer can translate and verify the assessed value before payment.

Disclaimer: Cadastral valuations and exemption thresholds change periodically. Verify current rates with the Egyptian Tax Authority or your Egyptian accountant before relying on specific figures.

Rental income earned by foreign owners on Egyptian property is technically subject to Egyptian income tax at progressive rates from 0 to 27.5 percent under Income Tax Law 91 of 2005. In practice, the burden depends on whether you operate through a registered property-management company, your home-country tax treaty status, and how the rental income is structured.

Egyptian income tax rates for the rental-income head are graduated:

A 7,000 EGP annual exemption applies to total rental income before progressive rates are calculated. For most foreign-owned El Gouna properties generating USD 8,000-25,000 in annual rental income, the effective rate after exemption falls in the 15-22.5 percent band.

If your El Gouna property is rented through a registered Egyptian property-management company, the company typically withholds 10 percent of gross rental income at source and remits this to the Tax Authority. The 10 percent represents an estimated tax pre-payment; reconciliation against progressive rates happens via the owner's annual tax filing.

Most foreign owners using Orascom Property Management (Nuba) or similar registered managers see 10 percent withholding on rental statements. This is the simplest compliance path and is treated as final settlement in practice for non-resident foreign owners.

If you rent directly through international platforms (Airbnb, Booking.com, VRBO) without a registered Egyptian property manager, withholding is not applied at source. The income is still technically subject to Egyptian tax, but enforcement on platform-only rentals to non-resident foreign owners is minimal in practice.

Some foreign owners voluntarily file Egyptian tax returns for platform rental income to maintain a clean compliance record, particularly when they hold larger portfolios or anticipate selling within five years. Your Egyptian accountant can confirm whether voluntary filing is advisable for your situation.

European foreign owners with double-tax treaty protections (Netherlands, Germany, UK, France, Italy, Belgium) typically receive credits in their home country for Egyptian tax paid. The credit method prevents double taxation on the same rental income.

For Dutch owners: the Egypt-Netherlands DTA (effective since 1999, last amended 2019) allows Dutch residents to credit Egyptian tax paid on Egyptian-situated property income against Dutch box-3 or box-1 liability. Document the Egyptian tax via Tax Authority receipts for your home-country filing.

Disclaimer: Treaty interactions are nuanced and depend on your specific residence status, the income type (active versus passive rental), and current tax-treaty interpretation. Verify with a tax advisor in your home country before assuming specific credits apply.

Two additional taxes complete the Egyptian real-estate tax landscape: value-added tax (VAT) and stamp duty. For most foreign residential buyers in El Gouna, VAT does not apply, but stamp duty is a routine line item on the closing statement.

Egypt charges 0 percent VAT on the sale of residential real estate. This applies to apartments, villas, townhouses, and any unit primarily intended for residential occupation — whether new from a developer or resale from a private seller.

The 0 percent rate is set under VAT Law 67 of 2016 (as amended) and is consistent with most international real-estate VAT regimes which treat residential transactions as VAT-exempt or zero-rated to avoid double-taxation with stamp duty and registration tax.

For foreign buyers of El Gouna villas and apartments, this means no VAT line item at closing.

If you buy commercial real estate in Egypt — office space, retail units, hospitality assets — the standard 14 percent VAT applies. This is uncommon for foreign buyers in resort destinations like El Gouna but does affect investors targeting Cairo, Alexandria, or hotel/serviced-apartment developments.

Stamp duty under Stamp Duty Law 111 of 1980 applies at 0.5 percent of the contract value for real estate transactions. The duty is paid on the formal sales contract that is presented to the notary public.

For a USD 250,000 El Gouna purchase, stamp duty is approximately USD 1,250. This is collected by the notary at contract signing and remitted to the Tax Authority. Stamp duty is not subject to the registered-versus-actual-value distinction that applies to registration tax — it is calculated on the contract value declared to the notary.

If your purchase includes furniture (a common practice in El Gouna resale transactions), the furniture value is typically itemized separately from the property value. Furniture and movable assets attract standard 14 percent VAT, though many private resale transactions involve furniture transfers outside formal VAT registration.

Disclaimer: VAT and stamp duty law has been updated multiple times since the 2016 reforms. Verify current rates with an Egyptian accountant before closing.

Double-taxation agreements (DTAs) between Egypt and most European Union member states prevent foreign property owners from being taxed twice on the same income or gains. For European buyers in El Gouna, the relevant treaties cover the Netherlands, Germany, the UK, France, Italy, Belgium, Spain, and most other EU member states.

The Netherlands-Egypt DTA has been effective since 1999 with amendments in 2019. Key provisions for property owners:

• Property income (rentals): taxable in Egypt as the country of property location; Dutch tax credit available for Egyptian tax paid.
• Capital gains on Egyptian property: taxable in Egypt; Dutch credit applies.
• Residence-status tie-breakers: rules to determine which country has primary taxation rights when an individual qualifies as resident in both.

Practical impact for Dutch El Gouna owners: the 10 percent rental withholding remitted in Egypt is creditable against Dutch box-3 wealth tax or box-1 income tax depending on how the property is held. Annual property tax (Dareebet) is generally not creditable as it is treated as an immovable-property charge rather than income tax.

Germany-Egypt DTA dates from 1987 with subsequent updates. Provisions for property owners are functionally similar to the Dutch arrangement: Egyptian taxation rights on Egyptian-situated property income, German credits for Egyptian tax paid.

German owners using Egyptian property as a vacation home (not generating rental income) typically incur no German tax exposure on the property itself, though German wealth-tax considerations may apply for high-value holdings (Vermögenssteuer rules vary by Land).

UK-Egypt DTA covers UK residents with Egyptian property. The treaty provides UK tax credits for Egyptian tax paid on rental income and capital gains. Post-Brexit, the UK-Egypt DTA remains in force independent of EU framework agreements.

France and Italy both maintain bilateral DTAs with Egypt providing standard credit mechanisms for property income and gains. French owners face French wealth tax (IFI) considerations on aggregate worldwide real-estate holdings above EUR 1.3M; Italian owners are subject to IVIE (Imposta sul Valore degli Immobili all'Estero) at 0.4 percent on the higher of historical cost or current value.

To claim DTA credits in your home country, retain:

• Egyptian Tax Authority withholding certificates (rental income)
• Registry receipts (registration tax, capital gains)
• Property tax payment receipts (Dareebet)
• Egyptian accountant's annual summary, where applicable

These documents are submitted with your home-country tax return. Most European tax authorities accept Egyptian Tax Authority receipts directly without requiring sworn translation, but some require apostilled translation for credits above specific thresholds (typically EUR 10,000+).

If you spend 183 days or more per year in Egypt, you become a tax resident under Egyptian rules. This triggers worldwide income reporting in Egypt, which interacts with home-country residence rules in complex ways. Most El Gouna foreign owners stay well below 183 days and remain home-country tax residents only.

Disclaimer: Treaty interpretations evolve through OECD model conventions, bilateral protocol amendments, and tax-authority practice. Confirm specific credits with a tax advisor in your home country before relying on them. Treaty residence determinations in particular require professional review for cases involving dual residence or extended stays.

Egyptian tax residency is determined primarily by the 183-day rule. Foreign nationals who spend 183 days or more per year in Egypt become Egyptian tax residents and are subject to worldwide income reporting in Egypt. Most El Gouna foreign owners — including those visiting for several months per year — remain non-resident in Egypt and pay tax only on Egyptian-sourced income.

Under Income Tax Law 91 of 2005 (Article 2), a non-Egyptian national is considered an Egyptian tax resident if they:

• 1Reside in Egypt for 183 days or more during any 12-month period that overlaps the tax year, OR
• 2Have a permanent home available in Egypt and significant economic interests there (alternative test for individuals below the day threshold).

Most foreign owners visiting El Gouna for 60-150 days per year fall well below the 183-day threshold and remain non-residents.

If you cross the 183-day threshold, your worldwide income becomes reportable in Egypt:

• All foreign-sourced income (home-country salary, dividends, foreign rental income, foreign capital gains) is potentially taxable in Egypt
• Egyptian-sourced income remains taxable as before
• Double-tax treaty tie-breaker rules determine which country has primary taxation rights when you also qualify as resident at home

Most owners avoid Egyptian tax residency by tracking their physical presence and limiting visits to under 183 days per year. The savings are substantial: avoiding worldwide income reporting in Egypt eliminates a layer of compliance and potential double taxation.

As a non-resident foreign owner, your Egyptian tax obligations are limited to Egyptian-situated income and gains:

• Rental income from your El Gouna property (subject to withholding via management company or progressive rates via direct filing)
• Capital gains on resale (2.5 percent at registration)
• Annual property tax (Dareebet)
• Stamp duty at purchase, registration tax at purchase

Foreign income (salary, dividends, foreign rentals, foreign capital gains) is not taxable in Egypt for non-residents.

Important distinction: Egyptian visa status (tourist visa, investor visa, residence permit) does not automatically determine tax residency. The 183-day physical-presence test is independent of visa type. A foreigner holding a 1-year Real Estate Investor Visa is not automatically an Egyptian tax resident — only physical presence triggers the threshold.

Conversely, a tourist-visa holder who happens to spend 183+ days in Egypt does become a tax resident under the day-count rule.

For foreign owners spending substantial time in Egypt, careful day counting matters. Days of entry and exit both count as days present in Egypt. Travel days are partial-day rules under OECD guidance but Egyptian practice treats them as full days.

Recommended practice: keep a personal travel log with entry and exit stamps photographed, and review your cumulative day count annually with your accountant before March-April of each year (when Egyptian tax filing windows open).

Disclaimer: Tax residency rules and tie-breaker provisions are technical and depend on individual circumstances. The 183-day rule is the primary test, but the "permanent home and economic interests" alternative is fact-specific. Consult a qualified Egyptian tax advisor before assuming non-resident status when day counts are close to the threshold.

Egyptian tax filing for foreign property owners depends on income type and residence status. Most non-resident foreign owners interact with the Egyptian Tax Authority through their property-management company or accountant, with limited direct filing required.

Annual property tax (Dareebet Al-Amlaak) is paid in two installments per year:

• First installment: due 30 June
• Second installment: due 31 December

Most owners settle the full annual amount in a single payment, typically in June. The Tax Authority issues an annual assessment notice in Arabic that arrives via the property-management company or El Gouna Resorts administration.

Late payment penalties: 2 percent per month of overdue amount, capped at 24 percent annually. Property-management companies typically handle timely payment for absentee owners to avoid penalty exposure.

If your El Gouna property is rented through a registered Egyptian property-management company, the company handles withholding and remittance to the Tax Authority. No separate filing is required from you as the foreign owner in most cases.

If you collect rental income directly (via Airbnb, Booking.com, or private arrangement) without a registered manager:

• Egyptian tax year runs 1 January to 31 December
• Tax returns for the previous year are due by 30 April of the following year
• Penalty for late filing: EGP 3,000-50,000 depending on income level, plus interest
• Penalty for non-filing: assessment by Tax Authority based on imputed income (often higher than actual)

Most foreign owners with direct rental income engage an Egyptian accountant to prepare and file annual returns. Fees run USD 200-500 per year for straightforward residential rental returns.

Capital gains tax is withheld at registration by the Egyptian Real Estate Registry when the sale is recorded. There is no separate filing requirement — the withholding constitutes final payment for non-resident foreign owners.

For Egyptian tax residents selling property, capital gains is reported on the annual income-tax return for the year of sale.

Foreign owners who file Egyptian tax returns need an Egyptian Tax Card. Registration is handled by an Egyptian accountant on your behalf:

• Required documents: passport, proof of address (utility bill or rental contract), property title
• Processing time: 2-4 weeks
• One-time cost: EGP 200-500 (under USD 20 at 2026 rates)

The Tax Card is your registration number with the Egyptian Tax Authority and is required for all formal tax filings.

Most foreign owners with rental income or anticipated sale within 5 years engage an Egyptian accountant for ongoing compliance:

• Annual cost: USD 200-500 for residential property compliance
• Services included: Tax Card registration, annual return preparation (if applicable), Authority correspondence, property tax payment handling
• Recommended providers: El Gouna-based accountants familiar with foreign-owner compliance (your agent or lawyer can refer)

For owners purely using the property as a vacation home with no rental income, direct compliance work is minimal and an annual accountant relationship may not be necessary.

Disclaimer: Filing requirements and deadlines change with annual tax-law updates. Verify current deadlines and penalty rates with your Egyptian accountant before relying on specific dates or amounts.

Foreign property owners in Egypt face a small set of additional compliance considerations beyond the core taxes. These mostly relate to currency, source-of-funds documentation, and the practicalities of remote ownership.

Egypt's anti-money-laundering framework (AML) requires source-of-funds documentation for property purchases above approximately USD 100,000. Foreign buyers typically provide:

• Bank statements showing accumulation of funds (6-12 months)
• Employment contracts or business sale documents
• Inheritance documentation, where applicable
• Tax residency certificate from home country

This documentation is reviewed by the Egyptian bank receiving the transfer and by the notary at contract signing. The process is routine for documented foreign buyers but can delay closings if documentation is incomplete.

Egypt operates a managed currency regime. There are no formal restrictions on foreign buyers transferring funds in for property purchases, but practical considerations apply:

• USD/EUR transfers settle in 5-7 business days for amounts under USD 500,000
• Larger transfers may require additional bank approval and source documentation
• Egyptian pound holdings are convertible back to USD/EUR but with applicable spreads
• Repatriation of rental income or sale proceeds to home-country accounts is permitted

When you sell your El Gouna property, sale proceeds can be repatriated to your home country in the original currency (USD or EUR). Practical steps:

• 1Net sale proceeds (after capital gains withholding and registration costs) are credited to your Egyptian bank account
• 2Submit repatriation request to the Egyptian bank with property sale documents
• 3Funds wire to home-country bank account in 7-14 business days

Repatriation is routine and not restricted. The Egyptian bank may apply a small spread on the FX conversion (0.5-1 percent typical).

Egyptian property held by foreign owners passes to heirs under Egyptian succession rules unless an Egyptian will specifies otherwise. Most European owners prepare an Egyptian will (sharia-compliant for Muslim heirs, separate for Christian/Jewish/other) alongside their home-country estate plan.

Inheritance tax in Egypt is generally low (0-15 percent depending on heir relationship and value), and double-tax treaty mechanisms typically apply for European inheritance scenarios. Consult a qualified Egyptian estate lawyer for inheritance planning specific to your nationality and family situation.

Foreign owners not present in Egypt for tax filings, property tax payments, or sale transactions use notarised powers of attorney delegating authority to:

• Egyptian lawyer (legal matters, contracts, Registry filings)
• Egyptian accountant (tax filings, Tax Authority correspondence)
• Property-management company (operational matters, utility transfers, Dareebet payment)

POAs are notarised in your home country, apostilled under the Hague Convention, and translated into Arabic. Allow 4-6 weeks for full POA preparation before your first transaction or filing deadline.

The most frequent compliance mistakes by foreign El Gouna owners:

• 1Missing source-of-funds documentation at purchase — causes 4-8 week delays
• 2Late annual property tax payment when management company is not engaged — incurs 24 percent annual penalty
• 3Failure to register Tax Card before direct rental filing — return rejected, penalties apply
• 4Not retaining Egyptian tax receipts — home-country DTA credit denied without documentation
• 5Crossing 183-day threshold accidentally — triggers worldwide income reporting

Each of these is preventable with basic planning and an annual accountant relationship.

Disclaimer: Foreign exchange controls and AML thresholds change with regulatory updates. Verify current requirements with your Egyptian bank and accountant before transferring large amounts or repatriating sale proceeds.

Below are three worked examples covering common foreign-owner tax scenarios in El Gouna. Numbers are illustrative and rounded. Your specific circumstances may differ — consult an Egyptian tax advisor before relying on these figures.

You buy a Marina apartment in 2026 for USD 220,000 and sell it in 2029 for USD 260,000.

At purchase (2026): - Sale price: USD 220,000 - Registered value: USD 130,000 (typical 60 percent ratio) - Registration tax (2.5%): USD 3,250 - Notary fees (~1%): USD 2,200 - Legal fees (optional): USD 1,000 - Agent commission (2.5%): USD 5,500 - Stamp duty (0.5%): USD 1,100 - Total at-purchase: USD 13,050 (approximately 6 percent of sale price)

Annual costs (each year 2026-2029): - Annual property tax (imputed): USD 350/yr - El Gouna service fee (90 sqm): USD 1,500/yr - Compound HOA: USD 1,000/yr - Utilities (vacation use): USD 800/yr - Total annual: USD 3,650 × 3 years = USD 10,950

At sale (2029): - Sale price: USD 260,000 - Capital gains tax (2.5% on gross): USD 6,500 - Notary fees on sale (~0.5%): USD 1,300 - Agent commission (2.5%): USD 6,500 - Net sale proceeds: USD 260,000 − USD 14,300 = USD 245,700

Net result over 3 years: - Gross gain: USD 260,000 − USD 220,000 = USD 40,000 - Less at-purchase costs: USD 40,000 − USD 13,050 = USD 26,950 - Less holding costs: USD 26,950 − USD 10,950 = USD 16,000 - Less at-sale costs: USD 16,000 − USD 14,300 = USD 1,700 net

Net profit USD 1,700 on a USD 220,000 investment over 3 years = 0.8 percent total return. Resale within 3 years is generally not profitable in El Gouna due to compounded transaction costs. Capital appreciation typically needs to exceed 6-8 percent annually for short holding periods to make sense.

You buy a West Golf villa in 2026 for USD 450,000 and hold for 10 years, renting it long-term (annual leases) for USD 22,000/yr gross.

At purchase: - Combined at-purchase costs (6 percent): USD 27,000

Annual rental income tax (each year): - Gross rental: USD 22,000 - Less property management (10 percent): USD 2,200 — net to owner USD 19,800 - Less 7,000 EGP exemption (approximately USD 150): USD 19,650 taxable - Effective tax rate (20 percent band): USD 19,650 × 20% = USD 3,930 - 10 percent withholding by manager: USD 1,980 (treated as final settlement) - Effective net rental: USD 22,000 − USD 2,200 − USD 1,980 = USD 17,820/yr

Annual property + service costs: - Annual property tax: USD 600/yr - El Gouna service fee (300 sqm villa): USD 4,000/yr - Compound HOA: USD 2,000/yr - Utilities: USD 1,200/yr (tenant pays) - Maintenance reserve (1% of value): USD 4,500/yr - Total annual property costs: USD 12,300/yr

Net annual yield: - USD 17,820 net rental − USD 12,300 costs = USD 5,520/yr net cashflow - USD 5,520 / USD 450,000 = 1.2 percent net yield on cost

After 10 years (2036): - Total net rental cashflow: USD 55,200 - Assume capital appreciation 7%/yr: USD 450,000 × 1.07^10 = USD 885,000 - Capital gains tax (2.5%): USD 22,125 - Sale costs (commission + notary): USD 22,500 - Net sale: USD 885,000 − USD 44,625 = USD 840,375 - Total return: USD 840,375 + USD 55,200 − USD 450,000 − USD 27,000 = USD 418,575 - USD 418,575 / USD 450,000 = 93 percent total return over 10 years (approximately 6.8 percent CAGR)

You buy a Marina apartment in 2026 for USD 180,000 and keep it purely as a family vacation home for 15 years.

At purchase: - Combined at-purchase costs (6 percent): USD 10,800

Annual costs (no rental income): - Annual property tax: USD 250/yr - El Gouna service fee (80 sqm): USD 1,300/yr - Compound HOA: USD 900/yr - Utilities (3-month vacation use): USD 500/yr - Property-management absentee fee: USD 30/yr (Dareebet handling) - Total annual: USD 2,980/yr × 15 years = USD 44,700

At sale (2041): - Assume 5%/yr appreciation: USD 180,000 × 1.05^15 = USD 374,000 - Capital gains tax (2.5%): USD 9,350 - Notary + agent: USD 13,000 - Net sale: USD 374,000 − USD 22,350 = USD 351,650 - Total economic outcome: USD 351,650 − USD 180,000 − USD 10,800 − USD 44,700 = USD 116,150 - USD 116,150 / USD 180,000 = 65 percent return over 15 years (approximately 3.4 percent CAGR)

Plus 15 years of family vacations in El Gouna — the non-financial return.

• 1Transaction costs (5-8 percent at purchase + 5-8 percent at sale) compress short-term returns. Resale within 3 years rarely produces positive economic outcomes.
• 2Long-term holds (10-15 years) capture capital appreciation and amortize transaction costs.
• 3Rental income tax is modest in practice when collected through registered managers (10 percent effective rate via withholding).
• 4Annual property tax is small (USD 200-600) and does not meaningfully affect investment math.
• 5Pure vacation use produces lower financial return but adds substantial lifestyle value.

Disclaimer: These scenarios are illustrative. Actual capital appreciation, rental income, and tax outcomes depend on market conditions, property location, management decisions, and individual circumstances. Use these as starting frameworks, not financial projections.