Egypt Capital Gains Tax Guide 2026

Overview — Capital Gains Taxation in Egypt

Egypt's capital gains tax framework under Law 91/2005 differentiates between types of assets and the holding entity. The most significant feature is the suspension of CGT on listed securities (shares and bonds traded on the Egyptian Exchange) from 2017 through 2027, making Egypt's stock market one of the most tax-friendly in the region for equity investors. Unlisted shares, real estate, and other assets remain subject to CGT. The Tobin tax on stock exchange transactions provides a revenue offset to the CGT suspension.

Listed Securities — CGT Suspended (2017–2027)

Under Law No. 206/2020, capital gains from the sale of listed securities on the Egyptian Exchange (EGX) are exempt from capital gains tax through 31 December 2027. Key details:

• The exemption applies to all securities listed on the EGX, including shares, bonds, and ETFs
• Both individual and corporate investors benefit from the exemption
• The suspension was originally introduced in 2017 and extended through 2027 by Law 206/2020
• The policy aims to stimulate stock market activity and attract foreign portfolio investment
• Non-listed securities do not qualify for the exemption

The suspension does not apply to gains realised by securities dealers or brokerage firms where securities trading constitutes a business activity rather than investment activity.

Unlisted Shares — 22.5% (Corporate) / 10% (Individual)

Capital gains from the sale of unlisted shares are subject to CGT:

• Corporate sellers: Gains are included in ordinary income and taxed at the standard corporate rate of 22.5%
• Individual sellers: Gains from unlisted shares are taxed at a flat 10% (final tax, not aggregated with other income)
• The gain is calculated as the difference between the sale price and the cost basis (acquisition cost adjusted for any capital injections or distributions)
• Indexation of cost basis is not permitted — gains are computed in nominal EGP terms
• A minimum holding period is not required for the standard rate to apply

Private company share transactions are common in Egypt for family businesses. The 10% rate for individuals is relatively favourable compared to the progressive IIT rates on other income.

Real Estate Capital Gains — 2.5% of Sale Value (Held Under 5 Years)

Capital gains from the sale of real estate are subject to a special tax regime:

• Held less than 5 years: Gains are taxed at 2.5% of the total sale value (not the gain — this is effectively a turnover tax on the sale price)
• Held 5 years or more: The gain is exempt from CGT — no tax is due on the sale
• The 5-year holding period is calculated from the date of acquisition (registration date) to the date of sale
• The 2.5% rate applies to both individuals and corporates selling real estate
• For corporate sellers, the 2.5% tax may be creditable against the corporate tax liability (the gain is also included in corporate income)

This rule encourages long-term property holding and discourages short-term speculation in real estate. The 2.5% rate on sale value (not gain) can result in a high effective tax rate on low-margin sales but is less punitive for high-appreciation properties.

Tobin Tax — Stock Exchange Transactions (0.1–0.15%)

Egypt imposes a stamp duty (Tobin-style tax) on stock exchange transactions, payable by the seller:

• Rate: 0.1% of the transaction value for most securities, increased to 0.15% for certain high-value trades
• Collected by the Egyptian Exchange (EGX) and remitted to the tax authority
• Applied to both listed shares and bonds traded on the EGX
• Foreign investors may be subject to a different rate under double taxation treaties (typically reduced to 0.05–0.1%)
• The tax is a transaction cost, not a capital gains tax — it is payable regardless of whether the transaction results in a gain or loss

The Tobin tax was introduced as a revenue-raising measure when the CGT on listed shares was suspended. Despite the small rate, the high volume of EGX trading generates meaningful tax revenue.

FAQs

Will the CGT suspension on listed shares be extended beyond 2027?

There is no official indication as of 2026. The suspension has already been extended once (from 2017 to 2027). Market participants expect a further extension or permanent exemption to maintain stock market competitiveness, but this is subject to government fiscal policy.

Are foreign investors subject to Egyptian CGT on listed shares?

During the suspension period (through 2027), foreign investors are also exempt from CGT on listed EGX shares. However, certain double taxation treaties may provide for Egyptian taxing rights that could be reactivated if the suspension lapses.

How is the cost basis determined for unlisted shares?

The cost basis is the original acquisition price documented in the sale/purchase agreement or subscription document. For shares acquired by inheritance or gift, the cost basis is typically the market value at the date of transfer (step-up basis). Proper documentation should be maintained.

Is cryptocurrency trading subject to CGT?

Cryptocurrency trading is not specifically regulated under Egyptian tax law. The Egyptian Tax Authority and the Central Bank of Egypt have issued warnings about crypto trading. Gains from crypto activity may be treated as business income (taxed at progressive IIT rates) if conducted on a regular basis, but the legal framework remains unclear.

Disclaimer

This guide provides general information about Egyptian capital gains tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Egyptian tax advisor or the Egyptian Tax Authority (ETA) directly for advice specific to your situation. InvestmentKit does not provide tax advice.