Real Estate Tax Updates in Egypt: All Details Explained

Egypt’s real estate tax law, also known as the property tax law, has recently undergone many amendments. The new regulations are in favor of the taxpayers, making the process of buying, selling, and investing in real estate way easier.

Maybe you have heard about these amendments, but didn’t understand how they are useful? Do you need more detailed elaboration on the benefits of the law updates?

No worries, in this article, we will cover all the relevant details: the original real estate tax law, its amendments, and how this tax is calculated.

All you need to do is stay focused for a 10-minute read!

What is Egypt’s Real Estate Tax?

Despite going through various amendments, the main concept behind the real estate tax stays unchanged. The main idea is taxing the rental value of real estate at a certain rate, which is set in Egypt to be 10%.

The real estate tax law in Egypt mentions the exceptions, exemptions, and all the other cases that are not taxable. Don’t forget that there is a difference between exempt real estate and non-taxable real estate.

Exempted real estate is buildings that should have been taxed but were exempted under certain conditions the law lists. These cases include having a rental value less than the taxable one, or non-profit use buildings, yet there are more cases.

While the non-taxable real estate is the buildings that are originally not subject to the taxing system. Those include, but are not limited to, state-owned buildings, religious-use buildings, and under-construction buildings.

Note that Egypt imposes an average of 2.5% capital gains tax on real estate. It’s a tax imposed on any gains generated from selling a good.

How is the real estate tax exactly calculated on properties? Find out in the following section.