New Property Tax Law

[Red Sea Way]

New Property Tax Law in Egypt Makes eery body worry about but when they read they find its not that bad to be afried of that

translation of teh new law coming soon

Red Sea Way

 

[Red Sea Way]

Opposition and independent deputies singled out for criticism a new law imposing a tax on domestic property valued at LE500,000 or more. Apartments valued between LE500,000 and LE1 million will be taxed between LE30 and LE660 annually. The tax will be reviewed every five years.

Red Sea Way

 

[Red Sea Way]

New regulations governing property tax, approved by Shura Council on Tuesday10 June 2008 , impose a levy on domestic property valued at LE450,000 or more. Apartments valued between LE450,000 and LE500,000 will be axed at the rate of LE7 a month, and those worth more than LE500,000 at LE13 a month. Minister of Finance Youssef Ghali told MPs that the new tax is part of the government's ongoing attempt to harness new sources of income to cover soaring costs. Both opposition and NDP deputies have warned that the new tax further burdens families whose budgets are already overstretched by the skyrocketing prices of food and fuel. The assembly's economic agenda also includes two bills that aim to toughen penalties for money laundering and curtail monopolistic practices.

Red Sea Way

 

[queenie40something]

Hi all

Please read this article Daily News Egypt - Full Article

 

[Red Sea Way]

Hi Queenie

actually i 'm going to put here the table with value rate of the property and how much the owners have to pay each year

Regars
Red Sea Way

 

[queenie40something]

Thanks Redseaway. Please bear in mind copyright - you may have to put the link to the site if you do not have the owners permission to post the info.

I just had to delete your last post due to copyright Im afraid.

 

[Red Sea Way]

HI Queenie

but sometimes the links doesn't open
any way i'll translate by myself with the table which coming from the Ministry of Egyptian national economy then i'll send here

thanks any way
Regards
Red Sea way

 

[johnwayne]

hi - a naive question - but would non residents have to pay this if their property is not registered ?

 

[queenie40something]

Good question??? I would assume yes but prob wrong lol. Maybe someone else can answer or we can just wait for more updats??

 

[Red Sea Way]

Hi John

yes has to pay the property tax even if the property is not registered
because the artical no 2 in the law says that will pay the tax who own or use a built property and has to matuer on January from each year

Redgars
Red Sea way
[email protected]

 

[Red Sea Way]

Property Value

In L.E Taxes5 to be paid yearly

in Egyptian Pound

600000
156

700000
282





800000
498

900000
534

1000000
660

1500000
1290

2000000
1920

3000000
3180





4000000
4440

5000000
5700

7000000
8220

9000000
10740

11000000
13260

13000000
15780

15000000
18300

Regards
Red Sea Way
[email protected]

 

[queenie40something]

Thanks Red - so the 1st figure is the value of the property in LE and the 2nd figure is the tax to be paid in LE on that property. How does the government know how much your property is worth?

 

[queenie40something]

Hi Red - another question - does this apply to property in Sinai and it states a levy of 10% of the rental value. Does this mean you still pay the property tax and if you rent you then pay an extra 10% of the rental value on top of the property tax as well??

Thanks

Alison

 

[queenie40something]

Has anyone got more information on this yet??

 

[Red Sea Way]

Thanks Red - so the 1st figure is the value of the property in LE and the 2nd figure is the tax to be paid in LE on that property. How does the government know how much your property is worth?

The Egyptian government will create a committee in each governrate in A.R.E and they will put the price at the market in that moment then they will take the taxs after they will compare with the prices above

Regards
Red Sea Way

 

[Red Sea Way]

Hi Red - another question - does this apply to property in Sinai and it states a levy of 10% of the rental value. Does this mean you still pay the property tax and if you rent you then pay an extra 10% of the rental value on top of the property tax as well??

Thanks

Alison

Dear Ali

I can Say Simply Yes

Regards
Red Sea Way

 

[dave99]

How will this work

Hi John

yes has to pay the property tax even if the property is not registered
because the artical no 2 in the law says that will pay the tax who own or use a built property and has to matuer on January from each year

Redgars
Red Sea way
[email protected]

How can this work if there in no official record of who owns an apartment if it is not registered. This is the main reason Egyptians do not register since it keeps them from being "known" as property owners.

 

[Zeiad Yehia]

Dear All,

When it comes to Property Tax "new law" please be informed that it applies only on properties which exceed EGP 400,000.00 in value, and is estimated as 14% of the average rental income per annum.

Where is the legal thread by the way?!!

All the best,

Zeiad Yehia
Solicitor

 

[dave99]

Who / How to decide rental income

Dear All,

When it comes to Property Tax "new law" please be informed that it applies only on properties which exceed EGP 400,000.00 in value, and is estimated as 14% of the average rental income per annum.

Where is the legal thread by the way?!!

All the best,

Zeiad Yehia
Solicitor

How will the rental income be estimated, and who will do it.

How will the local government even know about the property if it is not registered.

How will anyone know how the property cost to decide if it above the threshold for value (400,000 EGP).
.

 

[queenie40something]

Hi Zeiad its here on page 2 http://www.totallyproperty.com/egypt-property/6847-legal-post-questions-here.html the other is still a sticky x