Capital Gains Tax on EGX Stocks
Current treatment of capital gains, dividends, and stamp duty for EGX investors
The Current Framework
Egypt has periodically revised the tax treatment of stock market gains. As of recent law, capital gains realised on EGX-listed shares are subject to a defined tax rate, with specific carve-outs and a stamp duty applied separately on transactions.
Because rates and exemptions change with each finance law, always confirm the current schedule with your broker or a licensed Egyptian tax advisor before relying on a specific number for planning purposes.
Stamp Duty on Transactions
A small stamp duty is applied to both buyers and sellers on EGX transactions. The rate is fractional (in basis points) and is collected at execution by your broker. It applies regardless of whether you make a profit or loss.
This is functionally a transaction tax, not a capital gains tax — and it has been adjusted multiple times over the past decade.
Dividends
Cash dividends paid by listed Egyptian companies are subject to a withholding tax at source, with reduced rates for shareholders meeting certain holding-period and ownership thresholds. Bonus shares (stock dividends) are treated separately.
For most retail investors, the withholding is handled automatically — you receive the net dividend in your brokerage account without needing to file separately.
Foreign Investors
Egypt has signed double-taxation treaties with many countries (UK, France, Germany, UAE, KSA, and others) that may reduce withholding rates on dividends. Capital gains treatment for non-residents has historically been more favourable than for residents in certain cases.
Foreign investors should consult a tax advisor in both Egypt and their country of residence to understand the combined treatment of EGX gains and dividends.
FAQ
Do I pay tax if I lose money on EGX stocks?
No tax on capital gains is due if you have no gain. Stamp duty on transactions, however, applies regardless of profit or loss, since it is levied on the value of the trade itself.
Are EGX gains taxed differently from real estate or business income?
Yes. Egypt treats listed equity gains under a separate framework from general business income or real estate gains. Each category has its own rate and exemptions under Egyptian tax law.
Can losses on EGX stocks offset gains?
Loss offset rules have varied across finance laws. As of recent legislation, certain offset and carry-forward provisions exist for capital losses within the same category. Confirm current treatment with a tax advisor.