Inheritance and Succession Planning for Property in Egypt: A Complete Guide

Egypt has emerged as an increasingly active market for international property investors, particularly in the Red Sea coastal resorts, New Cairo, and the new administrative capital. The tax position on succession is genuinely favourable — Egypt abolished inheritance tax nearly three decades ago and imposes no estate duty. However, navigating the succession of Egyptian property as a foreign national requires careful attention to the applicable legal regime, the country's property registration system, and the rules governing foreign ownership that persist beyond the original buyer's death.

This guide sets out the key principles for foreign property owners and their advisers. It is an educational overview; always engage a qualified Egyptian lawyer and an international estate planning adviser before making decisions affecting your estate.

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The Tax Advantage: No Inheritance Tax

Egypt abolished inheritance tax (daribat al-irth) in 1996 under Law No. 143/1996, and there has been no movement to reintroduce it as of 2026. This means:

• Heirs pay no tax on the value of inherited Egyptian property
• There is no estate duty or wealth transfer tax
• Inherited property is not subject to capital gains tax at the point of inheritance — CGT is only triggered on a subsequent sale

This compares favourably with many European markets where inheritance tax rates for non-relatives can reach 40% or more, and even within the MENA region where some jurisdictions do levy transfer duties on death.

The principal costs associated with succession are the administrative costs of registering the property in the heir's name (notary fees, registration fees, translation costs, and legal fees), rather than taxes.

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Foreign Ownership Restrictions and Their Effect on Heirs

Egyptian law (Law No. 230/1996 and subsequent amendments) permits foreign nationals to own residential property in Egypt, subject to two key restrictions:

1. Maximum 2 residential properties per foreign national (or foreign legal entity)
2. Combined area not exceeding 4,000 square metres across all Egyptian properties
3. Minimum 5-year holding period before resale (with the Council of Ministers able to grant exceptions)

These restrictions apply not only to the original buyer but to the heirs who inherit the property. A foreign heir who inherits Egyptian property:

• Inherits subject to these same ownership caps (if they already own property in Egypt, they must ensure the total does not exceed the limits)
• Cannot immediately sell the inherited property if the original 5-year period has not elapsed — they must hold for the balance of that period, or apply to the Council of Ministers for an exception on the grounds of inheritance

In practice, exceptions for inheritance situations are typically granted, but the application adds time and cost to the succession process. If the original purchaser held the property for more than 5 years before death, the heir can sell without restriction (subject to paying any applicable capital gains tax).

For high-value portfolios or multiple Egyptian properties, consider this restriction carefully in succession planning — your heirs may be temporarily locked into holding Egyptian real estate.

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Applicable Succession Law

For Non-Muslim Foreign Nationals

Where the deceased was a non-Muslim foreign national, Egyptian courts generally apply the Egyptian Civil Code (Al-Qanun Al-Madani) to succession matters involving Egyptian-situated property. The Civil Code provides relatively broad testamentary freedom — a testator may, in principle, leave their Egyptian property to any beneficiary they choose by will, subject to the general principles of Egyptian law.

This gives non-Muslim foreign nationals meaningful flexibility in estate planning for Egyptian assets.

For Muslims (and in Some Cases for All Parties)

Islamic inheritance law (Al-Mirath al-Shar'i), codified in Egypt's Personal Status Law, applies to Muslim Egyptians and — in some circumstances — to all parties when the deceased was a Muslim or when the parties submit the matter to Islamic jurisprudence.

Under Islamic succession (faraid), the estate is divided according to fixed Quranic shares:

Heir	Share (approximate)
Husband (if wife deceased)	1/4 (with children) or 1/2 (without children)
Wife (if husband deceased)	1/8 (with children) or 1/4 (without children)
Son	Twice the share of a daughter
Daughter (no son)	1/2 (single) or 2/3 (two or more)
Father	1/6 (if deceased has children)
Mother	1/6 (if deceased has children)

Crucially, under Islamic law, the testator may only freely dispose of up to one-third of the estate by will (wasiyya). The remaining two-thirds passes to the faraid heirs in their fixed proportions. A will that purports to give more than one-third to a non-heir beneficiary is void as to the excess (unless the faraid heirs consent after death).

Foreign non-Muslim investors are generally not subject to faraid for Egyptian property succession purposes, but this depends on the specific facts — confirm with an Egyptian lawyer.

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Wills for Egyptian Property

Egyptian Notarial Will (Wasiyya Rasmiyya)

A foreign national can execute a will before an Egyptian notary (public notary or through the Egyptian Notarisation Office — Shahr al-Aqari). This will:

• Should be drafted in Arabic (or bilingual Arabic/English)
• Should specifically address Egyptian-situated assets
• Has direct legal force in Egypt without requiring foreign court recognition
• Should be registered in the Egyptian national register

An Egyptian will can sit alongside your home-country will. To avoid conflict, the Egyptian will should be explicitly limited to Egyptian assets, and the home-country will should expressly exclude Egyptian property.

Foreign Wills in Egypt

A foreign will can be relied upon in Egyptian succession proceedings, but it requires:

1. An apostille from the issuing country's competent authority (under the Hague Apostille Convention — Egypt is a signatory)
2. A certified sworn translation into Arabic by a translator approved by the Egyptian Ministry of Justice
3. Submission to the Egyptian court system for recognition

The court recognition process adds time (typically several months) and legal fees. For Egyptian assets, a dedicated Egyptian notarial will avoids this additional step and is strongly recommended.

Intestate Succession in Egypt

If there is no will, Egyptian intestate succession rules apply. For non-Muslims under the Civil Code, the estate passes to the surviving spouse and children (in broadly equal shares with some preference for direct descendants). If there is no immediate family, more distant relatives take.

For Muslims, the faraid shares described above apply on intestacy.

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The Property Registration Process for Heirs

After the owner's death, heirs must register the property at the Real Estate Registration Authority (RERA — Hay'at al-Shahr al-Aqari wa al-Tawthiq). This is the step that formally transfers legal title and is essential before the heir can sell, mortgage, or otherwise deal with the property.

Documents Typically Required

Document	Notes
Death certificate	Must be apostilled if issued outside Egypt; sworn Arabic translation required
Proof of heirship	Family registry extract (for Egyptian families) or a court order establishing heirship
Original title deed (Aqd al-Bay')	The original purchase contract, ideally previously registered at RERA
National ID or passport of heirs	Certified copies
Power of attorney	If heirs are acting through a local representative
RERA registration fees	Based on property value; relatively modest

Unregistered Properties

A significant proportion of Egyptian properties — particularly older buildings and some off-plan units — are not formally registered at RERA. Their ownership is evidenced by private sale contracts rather than registered title. Where the deceased held an unregistered property, the heir's position is more complex: the process may require court proceedings to establish ownership and effect a fresh registration. This underlines the importance of formal registration at the time of purchase.

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Capital Gains Tax on Eventual Sale

While there is no inheritance tax, a future sale of the inherited property may be subject to Egyptian capital gains tax. Egyptian tax law imposes a 2.5% tax on the sale price of real estate (as of 2026 — the rate and base have been subject to legislative changes; verify the current position before any transaction). This tax is payable by the seller (or the heir selling the inherited property).

There have been periods when CGT on real estate was suspended or reduced in Egypt; check the current status with an Egyptian tax adviser at the time of sale.

The heir's base cost for any future CGT calculation in their home country (e.g., UK capital gains tax) should be the market value at the date of inheritance, not the original purchase price paid by the deceased. Obtain a professional valuation at the date of death to establish this base cost.

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Currency and Repatriation of Proceeds

Egypt operates a managed exchange rate system, and repatriation of sale proceeds for foreign investors has historically been subject to Egyptian Central Bank (CBE) regulations and, at times, practical delays related to foreign currency availability. As of 2026, the CBE has taken steps to liberalise the foreign exchange regime following the significant EGP devaluations of 2022–2024, but the position remains subject to change.

Key practical steps:

• Ensure the original purchase was made through official banking channels and properly documented (wire transfer records, bank statements)
• Maintain the original purchase contract and all transaction documentation — proof of the foreign-currency inflow is required to repatriate proceeds
• Heirs who inherit should document the succession formally before any sale and retain the RERA registration paperwork

Engage an Egyptian bank and legal adviser before repatriating sale proceeds — do not assume funds can move freely without regulatory clearance.

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Practical Succession Planning Checklist

Step	Action
1	Make an Egyptian notarial will covering your Egyptian property specifically
2	Ensure the Egyptian property is formally registered at RERA in your name
3	Keep a file of all property documents accessible to heirs (title deed, purchase contract, tax receipts)
4	Inform heirs of the 5-year minimum hold rule and any balance remaining
5	Obtain a property valuation at the date of death (establishes heir's CGT base in their home country)
6	Engage a bilingual Egyptian lawyer to manage RERA registration transfer
7	Review the estate plan every 5 years and after major legislative changes

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Working With Local Professionals

Egyptian succession proceedings are conducted in Arabic, before Egyptian courts and administrative bodies. The involvement of a qualified Egyptian lawyer — ideally one with experience in foreign client property matters — is not optional. Key professionals to engage:

• An Egyptian notary for the Egyptian will and any power of attorney
• An Egyptian property lawyer for RERA registration proceedings
• An Egyptian tax adviser for CGT and repatriation guidance
• An international estate planning lawyer in your home country to coordinate the overall estate plan

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How Global Investments Can Help

Global Investments works with foreign buyers across Egypt's key markets — from the Red Sea resorts to New Cairo and the north coast. We can connect you with our network of trusted Egyptian legal professionals who understand the specific needs of international investors, from structuring your purchase correctly at the outset to ensuring your ownership documentation supports a smooth succession.

We also advise on the broader picture: coordinating your Egyptian succession planning with your home-country will, any trust structures, and cross-border tax planning across multiple markets.

Explore our Egypt property listings, the Egypt location guide, or our ownership structures guide for Egypt to understand how title is typically held and what this means for your estate.

This guide is for general informational purposes only and does not constitute legal or tax advice. Egyptian law and administrative practice can change without notice. Always seek advice from qualified Egyptian legal professionals and an international estate planning adviser before making decisions about property ownership or succession in Egypt.