Egypt Inheritance and Gift Tax Guide 2026

Overview — No Inheritance or Gift Tax in Egypt

Egypt does not impose inheritance tax (ضريبة الميراث) or gift tax (ضريبة الهبة). The inheritance tax was repealed decades ago, and gift tax followed in 2006 under Law 91/2005, which consolidated and simplified Egypt's tax system. This makes Egypt a highly favourable jurisdiction for wealth transfer and estate planning. There is no estate duty, no inheritance tax based on the relationship to the deceased, and no tax on lifetime gifts. The only costs associated with transferring wealth by inheritance or gift are registration and notarial fees for real estate and certain formal assets.

Historical Context — Gift Tax Abolished 2006

Gift tax was formally abolished in Egypt with the enactment of Law No. 91 of 2005 (effective 2006), which introduced the current unified income tax law. Prior to 2006, gifts exceeding a threshold were subject to a progressive gift tax. The abolition was part of a comprehensive tax reform aimed at simplifying the tax system and encouraging the formal transfer of wealth. Since 2006, all gifts — whether in cash, securities, real estate, or other assets — are entirely free from gift tax in Egypt. There is no annual gift allowance or cumulative lifetime exemption because no such concept is needed — gifts are simply not taxed.

Real Estate Inheritance and Gift — Registration Fees (3–5%)

While no inheritance or gift tax applies, transferring real estate by inheritance or gift requires registration at the Real Estate Registry (الشهر العقاري), which involves fees:

• Inheritance: Heirs must obtain an inheritance certificate (شهادة الوراثة) from the relevant authorities. Registration of inherited property in the heirs' names costs approximately 3–5% of the property's assessed value
• Gifts of real estate: Registration fees for a property gift (هبة عقارية) range from 3–5% of the property value, similar to inheritance registration
• Notary fees: Additional 0.5–1% for drafting and notarising the transfer deed
• Stamp tax: Nominal stamp duty on the transfer documents

These fees are administrative registration costs, not taxes on the transfer itself. The fee is based on the government-assessed value of the property, which may be lower than the market value.

Step-Up Basis for Inherited Property

For capital gains tax purposes, inherited property receives a step-up in basis (step-up basis). When a beneficiary inherits an asset and later sells it, the cost basis for calculating the capital gain is the fair market value of the asset at the date of the decedent's death (or the date of inheritance), not the original acquisition cost. This means:

• Capital gains tax is only due on the appreciation that occurs after the inheritance
• Any capital appreciation that occurred during the decedent's lifetime is permanently exempt from CGT
• The step-up basis applies to all inherited assets, including real estate, shares, and securities

The step-up basis is not explicitly codified in Egyptian tax law but is established through administrative practice and tax court jurisprudence. Proper documentation of the asset's value at the date of inheritance is important for future CGT calculations.

Familial Transfer Exemptions

Transfers between family members may benefit from reduced or exempt registration fees in certain circumstances:

• Direct descendants (children) and spouse: Some governorates offer reduced real estate registration fees for transfers between immediate family members
• Divorce property settlements: Transfers of property as part of a divorce settlement may be exempt from registration fees
• Endowment (Waqf) transfers: Traditional Islamic endowment transfers (الوقف) are subject to special rules and may qualify for reduced fees

It is advisable to consult with a local notary or real estate registration office for the specific fee schedule applicable in the relevant governorate, as practices vary.

Islamic Inheritance Rules (Sharia)

Inheritance in Egypt is governed by Islamic Sharia law (الشريعة الإسلامية) for Muslim Egyptians, with specific shares allocated to defined heirs. Key aspects:

• Shares are predetermined by the Quran — male heirs generally receive twice the share of female heirs of the same degree
• A spouse receives 1/8 of the estate (if there are children) or 1/4 (if no children)
• Children receive the residue, with sons taking double the share of daughters
• Non-Muslim Egyptians may apply their personal religious laws to inheritance matters
• Inheritance disputes are handled by the family courts (محاكم الأسرة)

The Sharia inheritance framework operates independently of the tax system — since no inheritance tax applies, the Sharia distribution rules are purely a matter of private law without tax consequences.

FAQs

Is there any tax on receiving a large cash gift?

No. Cash gifts of any amount are not subject to gift tax in Egypt. However, if the cash is deposited in a bank, the bank may report large deposits to the Egyptian Money Laundering Combating Unit (EMLCU) under anti-money laundering regulations, but no tax is due.

Do I need to report an inheritance to the tax authority?

No, the tax authority does not require a specific inheritance tax filing. The only required step is obtaining an inheritance certificate from the courts and registering real estate with the Real Estate Registry.

Are there any plans to reintroduce inheritance tax?

There have been occasional policy discussions about introducing a modest inheritance tax for high-value estates, but no concrete legislative proposals have been advanced. The current government appears committed to maintaining the tax-free status of inheritances as a matter of economic policy.

How are foreign assets inherited by an Egyptian resident taxed?

Egypt does not tax inheritance or gifts regardless of the location of the assets. However, if the foreign jurisdiction (e.g., the UK or US) imposes its own inheritance or estate tax, Egypt does not provide a credit for such foreign taxes since there is no equivalent Egyptian tax.

Disclaimer

This guide provides general information about Egyptian inheritance and gift tax rules for 2026. Tax laws and rates may change. Always consult with a qualified Egyptian legal professional or tax advisor for advice specific to your estate planning situation. InvestmentKit does not provide tax or legal advice.