Is there an inheritance tax in Egypt? The legal answer

If you have inherited real estate, money, or shares in Egypt and are wondering how much tax you will pay to the state before receiving your share, the good news is that the answer is simpler than you might expect.

Short Answer

There is no inheritance tax in Egypt. The estate tax was abolished by Law No. 227 of 1996, and since that date the Egyptian state has not imposed any tax on the transfer of money, real estate, or assets from a deceased person to their legal heirs. What heirs actually pay are administrative and judicial fees related to the probate and title-transfer procedures, in addition to subsequent taxes that may arise from the use of the inherited asset itself — such as the built-property tax or capital gains tax upon sale.

Why Is There No Inheritance Tax in Egypt?

An estate tax had been in force in Egypt since Law No. 142 of 1944 and remained effective for decades, with progressive rates that varied according to the degree of kinship and the size of the estate.

Law No. 227 of 1996 then abolished it entirely. ^[1]

The stated rationale at the time was to encourage the circulation of wealth within families without a tax burden that might push some to conceal assets or transfer them abroad. Since then, no serious legislative bill to reinstate it has been put forward, despite debates that periodically resurface in the media.

The bottom line: the transfer of an asset from the deceased's name to the heir's name does not in itself give rise to an inheritance tax in Egypt.

What Do Heirs Actually Pay, Then?

This is where many people become confused. The absence of an inheritance tax does not mean the process is free of charge. There are real costs.

Declaration-of-heirs fees: Obtained from the Family Court with jurisdiction over the deceased's last domicile. The fees are nominal, typically ranging from a few hundred Egyptian pounds depending on the type of application and the number of certified copies required.

Real Estate Publicity Authority fees for property title transfer: If the estate includes real property, registering the transfer of title to the heirs at the Real Estate Publicity Authority requires fees prescribed under Law No. 70 of 1964 and its amendments, capped in most cases at EGP 2,000 per unit. ^[2]

Built-property tax: This passes with the property itself. It is governed by Law No. 196 of 2008 and is levied on the annual rental value of the property once it exceeds the exemption threshold set for private residential use. ^[3]

Capital gains tax: If an heir later decides to sell listed shares on the stock exchange or sell real property, a tax may arise on the gain, or a real-property disposal tax of 2.5% of the total disposal value under Income Tax Law No. 91 of 2005. ^[4]

Note the distinction: these are taxes on the asset itself or on subsequent transactions, not on the inheritance event.

What If the Estate Is Abroad or the Heir Is Resident Outside Egypt?

This question comes up frequently, especially among Egyptians residing in the Gulf or in Europe.

The general rule is that Egypt imposes no inheritance tax, whether on estates located within its borders or on Egyptians who inherit assets from a deceased person who died abroad. However, the country where the assets are located may take a different view. France, the United Kingdom, the United States, Germany, and others impose inheritance taxes that can reach 40% or more of the heir's share, regardless of the heir's nationality.

In other words: if you inherit real estate in London, you will be dealing with HM Revenue & Customs, not the Egyptian Tax Authority.

And if you are an heir residing outside Egypt who inherits from an estate within Egypt, there is no Egyptian tax on you — but you may be subject to disclosure requirements or taxation in your country of residence under its domestic laws.

When Might Tax Claims Arise in Connection with an Estate?

Despite the absence of an inheritance tax in Egypt, the Egyptian Tax Authority may still come into the picture in specific situations:

• Outstanding tax liabilities of the deceased: Heirs are obligated to settle any unpaid taxes owed by the deceased, up to the value of what they inherited, in accordance with the Civil Code and the Unified Tax Procedures Law (Law No. 206 of 2020).
• Ongoing commercial or professional activity: If the deceased owned a sole-proprietorship business and the heirs continue operating it, they must update the tax file and file returns on time.
• Estate income before partition: Rental income generated by a leased property or share dividends arising between the date of death and the date of partition are subject to income tax in the normal way.

The key point that many overlook: the status of "heir" does not exempt you from tax obligations that existed against the deceased or that arise from the estate's assets after the date of death.

Are you certain the deceased's tax file has been properly closed before the estate is distributed?

You May Also Find Useful

• Declaration-of-heirs procedures in Egypt
• Transferring real-estate title after death

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