Real estate tax in Egypt
Law No. 196 of 2008 regarding real estate tax does not impose a new tax, as it is a tax already imposed under Law No. 56 of 1954. It has been recognized by society as “returns”, and its provisions have been reorganized by the current law. The taxpayer is the natural or legal person who has the right to Ownership, usufruct, or utilization of real estate. As for the tenant, he is not considered – liable to pay the tax – but is considered jointly with the taxpayer in paying the tax within the limits of the rent due to him.
Facilities to which real estate tax applies
The real estate tax applies to all built-up properties established on the land of Egypt, except for those that are not subject to tax. Whether it is leased or the owner charged with paying the tax resides in it himself, and whether it is complete and occupied, or complete and unoccupied, or occupied without completion, this means that all existing buildings are subject to the real estate tax, whether they are built villas, buildings, floats, or chalets, whatever their location. The tax is also imposed on exploited vacant lands (garages – nurseries – rented, etc.), provided that the tax is raised if the vacant lands become unused. Installations that are erected on the roofs or facades of real estate are also subject to tax if they are rented, or if the installation is for a benefit or a fee. What is meant by real estate in the new law is every residential and non-residential unit in a building, not the entire building.
State-owned built real estate allocated for a public utility purpose, as well as state-owned built private real estate, are not subject to the real estate tax, provided that they are subject to tax from the beginning of the month following the date of their disposal to individuals or legal persons, buildings designated for religious rituals or teaching of religion, and expropriated built real estate. For the public benefit, from the date of the actual seizure by the parties that expropriated their ownership, the courtyards and cemetery buildings, and the buildings under construction are not subject to tax.
Buildings owned by associations registered by the law and labor organizations allocated to their administration offices or to practice the purposes for which they were established, buildings and educational institutions, hospitals, clinics, shelters, and facilities that do not aim for profit, and premises owned by professional political parties, provided that they are used for the purposes designated for them, are exempted from tax. And the real estate unit that the taxpayer takes as a main private residence for him and his family, and whose annual net rental value is less than 24 thousand pounds. Anything more than that is subject to tax, and the family, in applying the provision of this item, includes the taxpayer, his wife, and minor children
You can check the official law for real estate tax at the links below
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