Egypt: can any one explain in detail the real estate tax which is approved recently?

Question

i read different news about it,,,when will it be applied? How much will it be?

Answer 1

Hey there Zoser,

The new real estate law keeps changing with the new additions from the parliament the recent of which is increasing the exemption threshold from LE 250 K to LE 500 K, also exempting units with a rental value less than LE 6k per year, which means about LE 500 a month. All the units to be taxed will be subject to a 10 percent tax (down from 12%) that will be further reduced after deducting the 30 percent maintenance costs.

Payment also under the new amendments could be divided into two installments at the beginning and mid year and according to the news it will start next year on all real estate over that amount...... (All the properties owned in places like the North Coast and Sokhna, Hurghada and Sharm...) and all the new places in 6th of October and 10 of Ramadan etc..

The thing is, who will value these properties, cos most of them were bought years ago with a much lesser value than they are today and according to the boom in the real estate market, most of all the flats and real estate are near if not much more above that amount.

Please read these links for further info.:

http://dailystaregypt.com/article.aspx?A...

http://www.dailystaregypt.com/article.as...

Answer 2

all what i know now that flats up to 400,000 L.E will not pay and above this will pay according to a table which means it is not liner relation flat price and tax ,but for a flat 600,000 L.E it will pay around 500L.E per year ,the real problem is the price of the flat is not the price which you bought the flat with but it an estimated price according to the market which will be huge for any flat

Answer 3

someone insists on taking taxes from the wealthy to make other wealthy Egyptians more wealthy .

also, this someone has a grudge against  the owners of chalets on the North Coast , so he will take a bite from them, too.

the real estate property has to be over 500,000 LE .

it will be re-assessed every 5 years so that the owner would pay higher taxes .

the problem is that the value of real estate rises for causes we arent responsible for , ie , the Minister of Iskan made an auction on the remaining chalets in Marina and sold each for 5 million LE instead of the regular one million LE .

now all our chalets have the value of 5million , and will make us pay 5 times more though we havent taken anything except the  a''r !

Answer 4

I don't really care about it zoser , bcos infact I don't really care about Egypt :( , everything is going in the wrong way here in Egypt,

But I searched for you , and I found this 2 links, hope it will be useful to you, miss u man,

http://www.alaswaq.net/articles/2008/06/...

http://www.masrawy.com/News/Egypt/Politi...