Hidden Costs of Buying an Apartment in Egypt
The unit price is not the only number in your budget. Several other costs appear at contract, handover, registration or resale, and they can surprise buyers who did not plan for them. Here are the main ones, who usually pays, and what to ask before you sign.
1. Maintenance deposit
Most developers charge a maintenance deposit to run and maintain common areas. A law-firm study of more than 40 contracts, reported by Masrawy in September 2026, found deposits reaching up to 10% of the unit price, sometimes collected before handover and often without a separate account or statements. Legally, commentators treat it as a deposit the developer must safeguard, and Building Law 119 of 2008 requires an owners' union once occupancy reaches a set level.
- How much is it, and when is it due?
- Is it held in a separate bank account, and who earns the return?
- When will it be handed to the owners' union?
- Can the developer increase it later?
2. Transfer (assignment) fees on resale
Akhbar El Yom reported that many developer contracts require approval for resale, with assignment fees of 5% to 10% of the unit price. If you buy a resale unit before registration, agree in writing who pays.
3. The 2.5% real estate disposal tax
Article 42 of Income Tax Law 91 of 2005, as amended, sets a tax of 2.5% of the total sale value on built property and building land. The seller is legally liable. In June 2026 the House approved amendments that kept the rate and extended the payment deadline to 60 days. Some sellers try to shift it to buyers, and unpaid tax can delay registration, so put it in the contract.
4. Registration fees
After the 2022 amendments (Law 9 of 2022), apartment registration moved to capped fixed fees rather than a percentage of value, and tax payment was separated from registration. Andersen Egypt cites a maximum fee of EGP 3,900 per unit. Survey and procedural costs may be added, so confirm with the registry or your lawyer.
5. Finishing, meters and utilities
Semi-finished units need a separate finishing budget. Ask whether electricity, water and gas meters are installed and registered to the unit, and whether any arrears exist.
6. Parking and extras
Some projects sell parking separately or charge club or security fees. Request a written list of anything not included.
7. Broker and legal fees
There is no official standard broker commission; it is negotiated. Agree on it in writing, and budget for a lawyer to review the contract.
Checklist
| Cost | Usually paid by | Your question |
|---|---|---|
| Maintenance deposit | Buyer | How much, when, held where? |
| Assignment fee | Negotiated | What rate, who pays? |
| 2.5% disposal tax | Seller by law | Paid, or when? |
| Registration | Usually buyer | Total actual cost? |
| Meters and utilities | Negotiated | Installed? Any arrears? |
| Parking and services | Buyer | Included in the price? |
| Broker commission | Negotiated | How much, who pays? |
FAQ
Is the maintenance deposit refundable?
It is earmarked for project upkeep, not part of the price, and should pass to the owners' union. Terms vary by contract, so have a lawyer review yours.
Who pays the disposal tax?
The seller, by law, although contracts sometimes say otherwise. Watch this clause.
How much buffer should I keep?
There is no fixed rule. Add up each item above after asking the seller.
On Masari you can compare unit prices, floor plans and payment plans before contacting any seller, then ask about these costs clearly.
Sources
- Parlmany: Text of Article 42 of the Income Tax Law as amended (Arabic)
- Al Mal: House approves Income Tax Law amendments (Arabic)
- Andersen Egypt: Property registration (Arabic)
- Masrawy: Study finds maintenance deposits reach 10% (Arabic)
- Akhbar El Yom: Developer adhesion contracts and buyer restrictions (Arabic)
- Mondaq: Maintenance Deposit Under Egyptian Laws