New Property Tax Law

[Zeiad Yehia]

Dear All,

My clients have drawn my attention to this thread.

I confirm that the new property tax law is applicable on the next year. Properties subject to the new law are only those which purchase price exceed EGP 400,000. Those which are less in price than the aforementioned figure are entirely exempted.

Tax is estimated as 14% of the rental value of the property per annum. Values will be determined via governmental committees that will be sent to inspect property values in Egypt's various regions and areas.



Now back to Delta Sharm. Delta receives a tax request on the entire complex, hen their financial department distributes the requested values on the properties there. I have no idea what method they use in dividing the entire sum, but, however, the sum an owner / tenant receives is the estimated share of their property according to the total amount requested by tax authorities.


I believe that the new law will help terminating any confusion in the future, and I am glad it was legislated, because now, at least, you can know 'for certain' the bases of your taxation.


Anyway the sum of tax this tenant has received is very fair. Do the mathematics.


All the best,

Zeiad Yehia
Solicitor

[queenie40something]

Originally Posted by sinaiscuba

I own apartment in Delta Sharm which has been rented in long term, private contract. Delta management is not involved. Last days my tenant while paying utilities was asked to pay Building Tax, which is 680LE/6mths (2 bed apt.).

Does anybody know anything about this tax in Egypt? All I heard is that Egyptian Government has plans to introduce such tax but since next year.

Hi SinaiScuba

I have moved your thread into this existing one on the new property tax laws. I know someone that had a couple of apartments on Delta. I think he has sold one but still has one that he rents long term - not you by any chance??

[sinaiscuba]

Hi Queenie, I guess it's me. Mr. Zeiad thank you for clarification, I think my tax rate is fair enough after mathematic ;-)))

[queenie40something]

Hi Sinai - is it Rob by any chance???

[sinaiscuba]

ooops, no Jeff

[queenie40something]

Lol well hello Jeff - I know Rob that had properties on Delta and Also Mohammed ( Ameno ) that lives there that used to have the internet cafe but now has coffee shop xx

[sinaiscuba]

I bought from Jeff. Lots of Britons bought apartments in Delta couple years ago. Moreover they got bargain price at that time when bought two or more apartments. Probably that's why Bristish community at Delta is really impressive there (lots of residents and tourists). Now prices are skyroceting (both sell and rent).

Probably I know Ameno, but don't remember all their names and nicknames :-)

Queenie, you mentioned that Rob sold one of his apartments last time. It was 1 bed for 50k? I'm asking because there are only few apartments for sale at Delta on the market.

[queenie40something]

Hi Im sure it was the 2 bed that he sold to an Italian I think and he still rents out the 1 bed long term. It was a few months ago. I think he was trying to look for a villa but as you say the prices have gone up and he is looking elsewhere now out of Egypt. I did ask him a while ago about the new tax and he hadnt heard of it but I could see if he has received any thing now x