What is the property tax in Egypt for owners?

Property tax in Egypt

The property tax in Egypt is mandatory and must be paid by all property owners, regardless of whether their properties are rented out or used for personal residence.

Recalculation of tax rates

Every five years, tax authorities review tax rates based on an assessment of the estimated rental value of properties. As a result, the tax burden is10%from the expected rental income. However, taxpayers have the opportunity to reduce the amount of tax by deducting expenses for maintaining their properties, which amount to30%for residential and32%for non-residential premises.

Tax exemption

If the property owner receives a net annual rent below24 thousand Egyptian poundsApproximately$1500If a person uses an apartment as their primary residence, they can apply for a tax exemption. To do this, it is necessary to submit a property declaration that lists all the properties they own in Egypt.

Example of tax calculation

To better understand the tax calculation procedure, let's consider the following example: if an apartment is valued at$130 thousandand the estimated rental cost is$2,300So after all deductions, the tax will amount to just$8This opens up opportunities for many foreign buyers, especially if they invest in more affordable properties in Egypt, to avoid paying property tax.

Notifications and information about taxes

Information about real estate rentals is published in the official publication.The Egyptian EventAdditionally, each taxpayer receives a notification about the rental value of their property in the form of a special letter, which is sent by mail with a notification or handed over personally by tax service employees.

Deadlines and procedures for tax payment

The property tax should be paid annually byJanuary 1Payment is made in two stages:

• The first part must be paid by the end of June;
• The second one is by the end of December.

The taxpayer also has the right to pay the entire amount in full on the day of the first payment, if they wish to do so.

Utilities

When it comes to utilities, their cost is significantly lower than in most European countries. The amount of utility payments varies depending on the location of the housing. For example, in the suburbsHurghadaNext to social facilities, expenses for a family of three can reach up to$40 per monthIn other areas, utility bills may be higher. Utilities have fixed rates and do not depend on the number of residents in the house.

Thus, living in Egypt can be quite advantageous in terms of utility costs and property taxes.

Water supply prices in Egypt

If your residence has central water supply, the cost per cubic meter of water ranges from 3 to 10 Egyptian pounds. However, not all buildings can boast such convenience. If water is delivered by special transport and stored in underground tanks, the price can rise to 25 pounds per cubic meter.

In most residential complexes, meters are installed to monitor water consumption. In Egypt, there is no centralized hot water supply system, so many residents choose to install electric boilers. Their cost ranges from 700 to 1000 Egyptian pounds (approximately 45–65 dollars), depending on the model, capacity, and other features of the device.

Cost of gas

As for gas supply, the prices are quite affordable, and gas is usually delivered in cylinders. The cost of one cylinder ranges from 10 to 15 Egyptian pounds, which is less than 1 dollar.

Payment for electricity

The payment for electricity varies depending on the amount consumed. For example, only £2.5 is charged for 50 kilowatt-hours, while the bill for using 1000 kilowatt-hours can amount to £270 (about $18). In modern residential complexes, the calculation for electricity is done through management companies, which set the rate at around 0.5 Egyptian pounds per kilowatt-hour.

Concierge duties

Concierges or doormen in Egypt perform a variety of key duties, including:

• cleaning of common areas,
• care for green plantings,
• security,
• garbage disposal,
• minor repairs,
• payment for common utilities.

Typically, residents pay around 60 Egyptian pounds per month for such services for each apartment. In modern complexes, these responsibilities can also be transferred to management companies, where the management cost can range from 300 to 2000 dollars per year. This also includes maintenance, cleaning, pool repairs, antenna installation, and other related tasks.

Internet and mobile plans

To access the internet at home, residents of Egypt can use the services of major providers such asVodafone,OrangeandEtisalatThe prices for internet service providers depend on the required speed and range from 120 to 500 Egyptian pounds per month. These companies also offer mobile plans priced from 20 to 1000 pounds monthly. To obtain a SIM card, you will need an identification document, such as a passport.

Real estate insurance

In Egypt, there is no mandatory property insurance, which allows buyers to choose their insurance coverage from any bank or insurance agency. Questions related to investments, immigration, and the real estate market can be discussed on specialized channels inTelegramwhere information about management companies is presented. These companies are responsible for maintaining the infrastructure of residential complexes and sometimes also provide rental services.

Management companies

There are numerous international companies operating in the market that work with new residential projects. Clients often continue to self-manage their properties, but owners have the option to reach out to relevant agencies for professional management assistance.

Real estate in Egypt: interesting offers

In Egypt, you can find a variety of interesting real estate offers, among which several attractive properties stand out. For example, in Sharm El Sheikh, an apartment is for sale for just19,000 €, with an area of46 square metersThis studio is located in a prestigious residential complex in the new developing area of Nabq.

Amenities in the residential complex

The complex offers an abundance of amenities for comfortable living:

• Pools
• Water slides
• Recreation areas
• Cafe
• Round-the-clock security ensuring the safety of residents

Options in Hurghada

If you are interested in an option in Hurghada, then there for65,889 €You can purchase a spacious two-bedroom apartment in the Turtles Resort complex. The area of this apartment is90 square metersand it is located in the rapidly developing area of Al-Akhia.

Nearby are:

• Supermarkets
• Pharmacies
• Restaurants
• Public transport stops

The apartment is located on the second floor and offers a view of the street.

For lovers of spacious objects

For those looking for more spacious options, a villa in El Gouna is offered for455,594 €, the area of which is163 square metersThis project covers an area of419,000 m², which includes exclusive villas and townhouses offering a picturesque view of the lake.125,000 m².

Each house combines spacious rooms with privacy. Additionally, residents can enjoy relaxation in a large park covering about22,000 m².

Luxurious villas in El Gouna

There is also a luxurious villa available in El Gouna for the price of598,136 €which has an area222 m²and includes four bedrooms. This project stands out for its location and offers residents a high level of comfort with a variety of amenities on-site.

Budget options in Hurghada

If you are looking for more economical options, a large apartment is offered in Hurghada.70 square metersfor47,680 €, which is currently under construction and is scheduled to be completed in the middle of2024 yearThis place attracts with its calm atmosphere on the shores of the Red Sea.

The Turtles Beach Resort is located in the cozy area of Al-Ahya, just a short distance from...in 20 minutesfrom the city center and the airport.

Prestigious complex "Delta Charm"

Finally, a furnished two-bedroom apartment is available in the prestigious "Delta Sharm" complex in Sharm El Sheikh, with a total area of93 square metersWhen purchasing this apartment, you will also be able to obtain a residence permit. The complex is equipped with:

• 12 swimming pools (one of them is heated)
• Rest area
• Cafes and restaurants
• SPA salon
• Kindergarten
• Hair salon

All of this makes this place perfect for living and relaxing.

Conclusion

Thus, residential complexes in Egypt offer a wide range of properties suitable for any preferences and financial capabilities, making this country very attractive for real estate investments.

Apartment in Sharm El Sheikh

In Sharm El Sheikh, located in Egypt, an apartment in a residential complex called Sunresidence is up for sale, with a price of360,000 eurosThis loft is a unique two-level space with an area of88 square metersand has its own garden. It is located in the very heart of the city, in the Naama Bay area.

The complex provides all the conditions for comfortable living, and all the necessary amenities are in close proximity. The beach is just a kilometer away from the apartment, allowing you to enjoy the sea every day.

On the territory of the complex, there are:

• several pools;
• water park
• restaurant;
• store
• a large playground.

These conditions make it an ideal option for families with children.

Apartment in Hurghada 411,000 euros

In Hurghada, you can also buy an apartment for411,000 euroslocated in the Sunresidence complex. The area of this apartment is32 square metersThere is one bedroom here, and it offers a stunning view of the sea.

The complex is located in the rapidly developing area of El Ghamasa, not far from the famous region of El Gouna. The beach is just a short distance away.150 metersfrom the building, which allows you to enjoy the beauty of the sea throughout the year.

All the amenities for comfortable living are provided here:

• open pool;
• rest area.

Prestigious apartment for 500,000 euros

In Hurghada, another apartment is being offered, the price of which is500,000 eurosIt is located in the prestigious La Prestigia complex and has an area of70 square meters, including two rooms.

The residential complex has all the modern amenities that create a cozy atmosphere. Its convenient location in the city center provides access to many essential services. This apartment would be an excellent choice for those who value the tranquility and comfort of their home.

Investment proposals from Living Point Property Ltd

For real estate investors in Hurghada, Living Point Property Ltd offers an apartment for69,000 eurosat Turtles Beach Resort. This is a fully furnished two-bedroom apartment with a terrace that has direct access to the shores of the Red Sea.

This is a wonderful opportunity for those who dream of having their own little corner by the sea, where they can enjoy their morning coffee on the balcony while admiring the sunrise.

Apartment for 55,000 euros

Another offer from Living Point Property Ltd — an apartment priced at55,000 euros, with a total area of51 square metersDespite its small size, the one-bedroom apartment features a high level of lighting and a well-thought-out design.

Here is present:

• modern kitchen combined with dining area;
• separate bedroom;
• bathroom.

The apartment is perfect for comfortable everyday living, making it attractive to renters.

Studio in Hurghada for 31,215 euros

It is also worth noting the compact studio in Hurghada, which is offered for31,215 eurosThis apartment has an area40 square metersand provides all the necessary conditions for a comfortable life.

The option for remote transactions, as well as payment in rubles or cryptocurrency, makes this offer particularly convenient for potential buyers.

Offers of apartments in Hurghada and Sharm El Sheikh

In one of the most attractive residential complexes in Hurghada, known as Florencia Hamsin, an apartment is available for sale. This complex is located on the second line from the sea in the center of the Arabia district. Nearby, there are new pedestrian zones as well as the Hurghada City Center shopping mall, creating ideal conditions for relaxation and shopping.

Apartment in Sharm El Sheikh

A apartment for sale in Sharm El Sheikh is being offered at a price of66,662 eurosThe area of this housing is70 square metersIt includes one bedroom and one bathroom. This apartment is suitable for obtaining a residence permit upon purchase and is available for online transactions. It is also intended for rental.

Amenities in the Delta Charm complex

The Delta Charm complex, where the apartment is located, delights residents with excellent amenities:

• 12 pools, including one heated pool
• Restaurants and cafes
• Spa Center
• Gym
• Rest areas
• Supermarket
• Hair salon
• Kindergarten

Round-the-clock security and a modern management system ensure a high level of safety and comfort for residents.

Studio in Hurghada

You can also buy a studio in Hurghada for32,000 eurosThe area of this compact studio is40 square metersIt includes one bathroom. This property is perfect for both rental and for those looking for the opportunity for remote viewing and transactions with cryptocurrency payment. Guests and owners are treated to beautiful views of the sea and the pool, making the offer particularly enticing.

One bedroom apartment in Hurghada

In addition, there is an opportunity to consider purchasing an apartment in Hurghada for47,800 eurosIt consists of two rooms and is conveniently located close to all the main tourist routes. Thanks to the online viewing and the possibility of a remote transaction, the purchase process is easy and convenient. This two-room apartment will be an excellent solution for comfortable living in Hurghada.

Apartments on the third floor

An equally interesting offer is the apartments in Hurghada for27,000 eurosThese apartments are located on the third floor and offer a stunning view of the courtyard and pool. This prestigious complex is also equipped with all modern amenities.

Apartment in El Gouna

A special mention should be made of the apartment in El Gouna, priced at582,799 euroswhich has an area of120 square metersIt includes three rooms. This residential complex is surrounded by picturesque nature and has a calm atmosphere, perfect for a relaxing lifestyle. Its exclusive location in a green area and along water bodies makes this housing particularly attractive.

A large apartment in Hurghada

Additionally, an apartment in Hurghada is offered for97,500 euroswith an area95 square meterswhich includes three bedrooms. It is located in the tourist area of Arabia, near City Centre Mol and Hilton Plaza, on the first line from the sea. This creates excellent conditions for living and relaxation. This complex includes:

• Private beach
• 24-hour security
• Several swimming pools
• Spa Center
• Gym
• A restaurant with a panoramic view of the sea

Consider the possibility of purchasing a two-bedroom apartment, which would be an excellent option for both living and rental investment.

Apartment in Hurghada

In Hurghada, located in Egypt, a property with a total area of 41 square meters is for sale at a price of 18,945 euros. This offer will particularly interest investors, as the purchase of such real estate comes with a residence permit. There is also the option to conduct a remote transaction, with payment available in both Russian rubles and cryptocurrency.

Residential complex

The complex where the apartment is located is a modern club house with a swimming pool and is situated in the very center of Hurghada, just 200 meters from the sea, on the second coastline in the Arabia area. This residential property is surrounded by well-developed infrastructure facilities, such as:

• large shopping center City Mall;
• supermarket chains;
• many cafes and restaurants;
• promenade

The complex offers various amenities for residents, including relaxation areas, a swimming pool, and management services available 24/7.

Real estate in El Gouna

In addition, there are several interesting properties available in the El Gouna real estate market. For example, you can purchase a spacious apartment of 105 square meters with three bedrooms and two bathrooms for 265,000 euros. This property also offers the possibility of obtaining a residence permit upon purchase and is located in the successful resort area of West Golf.

Interior and features of the apartment

The apartment's interior is designed in a traditional Arabic style, featuring an open-plan kitchen, a living room, and a large terrace with a picturesque view of the lagoon and pool. El Gouna is considered a sought-after destination for investors looking to acquire comfortable housing.

Life in Egypt

Life in Egypt has its peculiarities, one of which is that local salaries are significantly lower than in most European countries. On average, they amount to about 9,200 Egyptian pounds per month, which is equivalent to approximately 585 US dollars. The highest incomes can be observed in major cities like Cairo and Sharm El Sheikh.

This income disparity is also observed across sectors:

• High salariescharacteristic of the IT sector, oil industry, and healthcare;
• Low salariesThey are found in service sectors such as cleaning and courier services.

Living conditions

The living conditions in the country are considered quite affordable. The transportation infrastructure can vary across different regions, but taxis can be regarded as an economical means of getting around. The cost of a trip from the airport ranges from 40 to 175 Egyptian pounds, which is equivalent to 190–900 rubles.

The largest mobile network operator in Egypt is the international company Orange, whose tariff plans can cost between 20 to 150 Egyptian pounds per month (from 100 to 750 rubles).

Prices and expenses

According to data from the Numbeo portal, the cost of living in Egypt is 8.89% lower than in Russia. To meet their needs, one person will need approximately 6,000 Egyptian pounds per month, which is about 28,000–29,000 rubles, and this amount does not include rent. Judging by the average income, such expenses seem quite reasonable.

Real estate market

As for the real estate segment, after 2015, when charter flights from Russia to Egypt were suspended, the interest of Russians in purchasing property in this country noticeably decreased. Political changes and currency instability had an impact, significantly devaluing the Egyptian pound.

As a result, over the past five years, property prices in resort areas have nearly halved, creating attractive conditions for new investors looking to purchase real estate in this region.

Conclusion

In conclusion to the article about property tax in Egypt, I would like to highlight a few important aspects that, in my opinion, should be considered by every potential investor or property buyer in this country.

Tax systemIt is relatively simple and clear, and also provides certain benefits, such as tax exemption for apartments with low rent used as primary residences. This makes real estate investments in Egypt more attractive, especially for foreign citizens who do not plan to earn money from renting out the property.

I would also like to note that the tax system effectively handles the task of determining the market rental value, which then serves as the basis for tax assessment. This indicates the authorities' commitment to ensuring transparency and predictability, which is undoubtedly a plus for investors.

Tax savingsThis is possible due to a well-thought-out approach to planning expenses for property maintenance, which allows for significant reductions in tax payments.

Utilities

An important aspect is also the cost of utilities:

• It is significantly lower than in European countries, which makes life in Egypt more comfortable for expats and locals.
• The presence of a large number of providers and a variety of tariffs for internet and mobile services creates competitive conditions for users.

Management companies

The role of management companiesOne should not underestimate them. They provide an additional level of convenience and security for property owners, offering a wide range of services for property management and rental.

Main findings

In conclusion, I want to emphasize that investing in real estate in Egypt can be not only a profitable decision but also an enjoyable experience. I hope the information presented in this article will be useful to you and help you make an informed choice regarding purchasing property in this fascinating country.