Tax Issues for Irish Residents Investing in
Egyptian Property
EGYPT
Income Tax
An individual who is not resident in Egypt for tax purposes and who
is in receipt of rental income from Egyptian property is liable to
Egyptian income tax at normal rates on any rental profit.
The rate of income tax in Egypt is 20% and deductions are available for
maintenance and expenses in calculating the taxable rent and tax returns
must be filed by March 31 each year.
Withholding Tax
Payment of rental income by Egyptian residents to non-residents may be
subject to withholding tax at 20% on the full amount of the rental
income without deductions.
Property Taxes
There
is no Stamp Duty in Egypt. Land registry fees may be payable in
connection with the registration of the property. Furthermore, the sale
of land/buildings attracts a tax at a maximum cap of 250 Euro. The
person making the disposal must file a return and pay the tax by 31st
March following the disposal.
Capital Gains Tax/Inheritance Tax
There is no Capital Gains Tax or Inheritance Tax in Egypt.
IRELAND
Income Tax
As an individual resident in Ireland, Irish income tax will be payable
on any profit arising in Egypt after normal deductions including
interest paid. The deductions will also include any Egyptian income tax
paid.
Capital Gains Tax
Irish resident individuals are liable to Irish capital gains tax on
profits made in Egypt. Deductions in Ireland in arriving at the
chargeable gain include legal and professional fees involved in the
disposal whether in Egypt or in Ireland and also Egyptian property tax
payable on the disposal.
Gift Tax/Inheritance
Tax
Egyptian property will be liable to Irish Gift Tax or Inheritance Tax
if, at the date of the gift or the date of death the person making the
gift/bequest is resident or ordinarily resident in Ireland for tax
purposes, or if the person receiving the gift or inheritance is resident
or ordinarily resident in Ireland.
Double Taxation
Agreements
Ireland is currently negotiating a double taxation agreement with Egypt.
When that agreement is concluded, any income tax paid in Egypt will be
available as a direct set off against the equivalent tax in Ireland
(rather than as a deduction in arriving at taxable rental profits).
Professional
Advice
Note: you are strongly advised to seek independent professional
advice tailored to your specific needs before entering into any
transaction. The above summary is by definition a brief outline of
general tax issues and should not be relied upon for the purpose of
any decision to purchase property. No responsibility can be taken
for any loss suffered as a result of relying on the content of this
summary
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