What Are Closing Costs?
Closing costs are the fees and charges you pay to transfer property ownership from seller to buyer. They're separate from the property price and your mortgage.
In Egypt, these costs typically land between 4% and 7% of the purchase price. On a property priced at EGP 3 million, you'll pay EGP 120,000 to EGP 210,000 in closing costs.
Some are fixed by law. Some are negotiable. Some vary by developer or location. Here's the full list.
Registration and Official Fees
Real Estate Registration Tax (Stamp Duty)
This is the big one. Egypt charges 2.5% of the declared property value to register the sale at the Real Estate Publicity Department.
Example: EGP 3 million property = EGP 75,000 stamp duty.
Who pays? By law, buyer and seller split it equally (1.25% each). In practice, buyers often absorb the full amount as part of purchase negotiations. Your contract will specify who pays.
This fee is non-negotiable. It's set by the Ministry of Finance.
Registration Service Fees
The Real Estate Publicity Department charges administrative fees to process the paperwork. These run around EGP 1,000 to EGP 2,500 depending on the governorate.
In Cairo and Giza, expect EGP 2,000.
Notarization Fees
Before registration, you'll notarize the sale contract at a notary office (مَكتَب التَّوثيق). This costs roughly EGP 500 to EGP 1,000.
Some developers handle this step. Ask during your due diligence.
Legal and Advisory Fees
Property Consultant Commission
If you worked with a property consultant (like RE/MAX Jareed), the standard commission in Egypt is 2.5% of the purchase price, paid by the buyer.
Example: EGP 3 million property = EGP 75,000 commission.
This covers property search, negotiation, paperwork coordination, and post-sale support. Commission is usually paid at closing.
Some developers offer commission-free sales if you buy directly. But you lose professional representation, contract review, and pricing benchmarks. Weigh the trade-off.
Lawyer Fees
A real estate lawyer reviews your contract, checks title, verifies seller identity, and registers the sale. Fees range from EGP 10,000 to EGP 30,000 depending on property complexity.
For compound resale units, expect EGP 10,000 to EGP 15,000. For standalone villas or land plots, closer to EGP 20,000 to EGP 30,000.
Some property consultants include paralegal support in their commission. Clarify upfront.
Developer and Delivery Fees
Maintenance Deposit
Most gated compounds require a refundable maintenance deposit at handover. This covers landscaping, security, pools, and gyms.
Deposit amounts vary by compound:
- Sodic West: EGP 15,000 to EGP 25,000 depending on unit size
- O West: EGP 20,000 to EGP 30,000
- Allegria: EGP 25,000 to EGP 40,000
- Beverly Hills: EGP 30,000 to EGP 50,000
You'll get this back (minus any damage charges) if you sell the unit later.
Annual Maintenance Fees (Prorated)
Your first year's maintenance fees are often prorated based on your delivery month. If you take delivery in June, you'll pay 50% of the annual fee at closing.
Annual fees in West Cairo compounds:
- Sodic West: EGP 12–18 per sqm
- O West: EGP 15–20 per sqm
- Allegria: EGP 18–24 per sqm
- Beverly Hills: EGP 20–28 per sqm
For a 200 sqm villa in Sodic West at EGP 15/sqm, your annual maintenance is EGP 3,000. Prorated for six months: EGP 1,500 at closing.
Club Membership Fees (If Applicable)
Some compounds require paid club memberships. These are usually optional but heavily encouraged:
- Allegria Golf Club: EGP 50,000 to EGP 100,000 (refundable bond) + annual dues
- Beverly Hills Club: EGP 30,000 to EGP 60,000
Confirm with the developer whether membership is mandatory for your unit type.
Utility Connection Fees
Electricity Meter Installation
Egypt's electricity distribution companies charge a one-time connection fee based on your meter capacity:
- 20 amp meter (small apartment): EGP 1,500
- 40 amp meter (mid-sized apartment or townhouse): EGP 3,000
- 60+ amp meter (villa): EGP 5,000 to EGP 8,000
Some developers pre-install meters and pass the cost into the purchase price. Others require you to handle it at delivery. Check your sale contract.
Water and Gas Connection
Water connection fees run EGP 1,000 to EGP 2,000. Natural gas (if available in your compound) costs EGP 2,500 to EGP 5,000.
Many gated compounds include water in your maintenance fees but bill you separately for usage above a threshold.
Internet and Landline
Telecom Egypt charges EGP 500 to EGP 1,000 for landline installation. Fiber internet setup is usually free, but you'll pay the first month upfront (EGP 200 to EGP 500).
Mortgage-Related Costs (If Financing)
Bank Appraisal Fee
Your lender will hire an independent appraiser to value the property. This costs EGP 3,000 to EGP 5,000, paid by you.
The appraisal ensures the property is worth what you're borrowing against.
Mortgage Registration Fee
Banks register a lien on your property at the Real Estate Publicity Department. Registration costs 0.25% of the loan amount.
Example: EGP 2 million loan = EGP 5,000 registration fee.
Administrative and Processing Fees
Banks charge 0.5% to 1% of the loan amount to process your mortgage. On a EGP 2 million loan, that's EGP 10,000 to EGP 20,000.
Some banks waive this fee during promotional periods. Ask your account manager.
Life Insurance Premium (First Year)
Most Egyptian banks require mortgage life insurance. The first year's premium is paid at closing and typically costs 0.3% to 0.5% of the loan amount.
Example: EGP 2 million loan = EGP 6,000 to EGP 10,000 first-year premium.
Real-World Example: A Townhouse in Sodic West
Let's walk through an actual closing statement. The buyer purchased a 250 sqm townhouse in Sodic West for EGP 4,200,000. She financed EGP 2,500,000 (60% LTV) and paid EGP 1,700,000 down.
Closing Costs Breakdown:
| Line Item | Amount (EGP) |
|---|---|
| Stamp duty (2.5%) | 105,000 |
| Property consultant commission (2.5%) | 105,000 |
| Lawyer fees | 12,000 |
| Maintenance deposit (refundable) | 20,000 |
| Annual maintenance (prorated 6 months) | 1,875 |
| Electricity meter (40 amp) | 3,000 |
| Water connection | 1,500 |
| Gas connection | 4,000 |
| Internet installation | 800 |
| Bank appraisal | 4,000 |
| Mortgage registration (0.25% of loan) | 6,250 |
| Bank processing fee (1% of loan) | 25,000 |
| Mortgage life insurance (first year) | 10,000 |
| Registration service fees | 2,000 |
| Notarization | 800 |
Total Closing Costs: EGP 301,225
As % of Purchase Price: 7.17%
She brought EGP 2,001,225 to closing (down payment + closing costs).
What You Can Negotiate
- Who pays stamp duty: Offer to split it 50/50 or ask the seller to cover it if the market favors buyers.
- Property consultant commission: Some brokerages offer reduced rates for cash deals or repeat clients.
- Lawyer fees: Shop around. Fees vary widely for the same scope of work.
- Club membership: If the developer pushes a club bond, ask if it's truly mandatory or just preferred.
What You Cannot Negotiate
- Stamp duty percentage (2.5% is law)
- Mortgage registration fee (0.25% is regulated)
- Utility connection fees (set by state companies)
- Maintenance deposit terms (set by compound HOA)
How to Budget for Closing Costs
Use this formula:
Closing Costs = 4% to 7% of purchase price
- 4% scenario: Cash deal, no lawyer, seller pays stamp duty, direct developer purchase
- 7% scenario: Financed purchase, full legal representation, buyer pays all stamp duty, property consultant involved
If you're financing, add mortgage-related costs (appraisal + registration + bank fees + insurance) to the base 4-5%.
Always ask your property consultant for a preliminary closing statement before you sign the purchase agreement. No surprises.
When Do You Pay?
Most closing costs are due on delivery day or registration day, whichever comes first.
Typical payment schedule:
- Down payment: Per your contract (e.g., 10% at signing, 10% at 25% construction progress, etc.)
- Property consultant commission: Usually at final contract signing or registration
- Stamp duty + registration fees: At the Real Estate Publicity Department on registration day
- Lawyer fees: 50% upfront, 50% at registration (common structure)
- Maintenance deposit + annual fees: At unit handover
- Utility connection fees: When you activate service (can be weeks after delivery)
- Mortgage fees: At loan disbursement (closing day)
Bring a certified bank check or arrange a wire transfer. The Real Estate Publicity Department does not accept cash for stamp duty above EGP 10,000.
Red Flags to Watch For
Undisclosed fees at closing. Your consultant or lawyer should provide a full pro forma closing statement at least two weeks before delivery. If new line items appear on closing day, pause and investigate.
Seller refuses to split stamp duty. In a balanced market, stamp duty is negotiable. If the seller won't budge and comparable properties offer better terms, walk.
Developer demands non-refundable club bonds. Refundable deposits are standard. Non-refundable club fees should be clearly disclosed in your purchase agreement. If they're not, push back.
Utility connection fees 2x market rate. Some developers inflate meter installation costs. Cross-check with the local electricity distribution company's published tariff.
Final Checklist: 30 Days Before Closing
- Request preliminary closing statement from property consultant
- Confirm stamp duty split with seller in writing
- Hire lawyer (if not already retained) and share sale contract
- Apply for mortgage (if financing) and lock in your rate
- Schedule property inspection (pest, structure, systems)
- Verify compound maintenance fees and deposit terms
- Open utility accounts (electricity, water, gas)
- Arrange certified bank check or wire transfer for closing funds
- Confirm registration appointment date at Real Estate Publicity Department
Closing costs won't surprise you if you plan early. Budget 5-6% of the purchase price as a safe middle estimate, adjust based on your deal structure, and review every line item with your consultant before you sign.
Property ownership in Egypt comes with upfront costs. But once you're past closing day, you'll hold title to an asset in one of Cairo's fastest-appreciating markets. The fees are a one-time toll. The location and value compound over decades.