Egypt Real Estate Tax (ضريبة العقارات)

General reference only. This skill is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for any specific person's facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.

Jurisdiction is required. Set jurisdiction: EG in frontmatter even when the folder path implies it. Sync to openaccountants.com skips files without a resolvable jurisdiction.

This skill covers Egyptian real estate tax (ضريبة العقارات المبنية) under Law No. 196 of 2008 (the Unified Real Estate Tax Law), as amended by Law No. 117 of 2014 and Law No. 3 of 2026. The AI must reply in the user's language (English or Arabic / Egyptian Arabic) and may use the native tax terms shown throughout.

Currency note: all figures are in Egyptian Pounds (EGP / ج.م). YMYL — verify before relying. Egyptian property tax thresholds and exemptions were amended in 2014 and again in 2026 (Law 3/2026). Where this skill says "verify current value," re-confirm against the Real Estate Taxation Authority (RETA), the Egyptian Tax Authority (eta.gov.eg), PwC Worldwide Tax Summaries (taxsummaries.pwc.com/egypt), or a Big-4 alert before filing.

Section 1 — Scope statement

This skill covers:

• The annual real estate tax (ضريبة العقارات المبنية) imposed on built property in Egypt
• Tax base: annual rental value (ARV) as determined by government assessors
• Tax rates and deduction mechanics for residential and non-residential property
• Exemptions: residential threshold, non-residential threshold, specific property types
• Filing and payment: annual declaration to RETA (not ETA e-filing portal)
• Collection: administered by municipalities via the Real Estate Taxation Authority (RETA)
• The CIT non-deductibility rule: real estate tax is NOT deductible for corporate income tax purposes
• March 2026 amendments (Law 3/2026): updated thresholds, digital filing, penalty waivers
• Real estate transactions tax (2.5% on property transfers) — briefly, for context
• Real estate wealth tax on rental income (10%–27.5% schedule) — briefly, for context

This skill does NOT cover:

• Corporate income tax (CIT) — see eg-corporate-tax
• Personal income tax on rental income — see eg-income-tax
• VAT — see egypt-vat
• Stamp duty on property registration — see eg-stamp-duty
• Property registration procedures (Law 114/1946) — legal, not tax
• Transfer pricing — see eg-transfer-pricing

---|------|--------| | Primary law | Unified Real Estate Tax Law — imposes annual tax on built real estate | Law 196/2008 | | Amendments | Raised residential exemption threshold from EGP 6,000 to EGP 24,000; broadened commercial exemption | Law 117/2014 | | Latest amendments | Raised exemption threshold to EGP 100,000; 25% timely-payment discount; penalty waiver; digital filing; centralized declaration submission | Law 3/2026 (March 2026) | | Regulatory authority | Real Estate Taxation Authority (RETA — مصلحة الضرائب العقارية), known as "Maamouria" (المعمورة) | Law 196/2008 Art 1 | | Collection | By municipalities / governorate-level RETA offices (44 offices nationwide) — NOT the ETA e-filing portal | Law 196/2008 Art 38 | | Related transfer tax | 2.5% of property sale value — due on transfer | Law 196/2008 Art 40 | | Related wealth tax | On rental income: 10%–27.5% progressive schedule — separate from the annual property tax | Law 91/2005 Art 47 |

Key distinction. The real estate tax is an annual tax on property OWNERSHIP (not income). The real estate wealth tax is a tax on rental INCOME. They are separate levies with separate filing mechanisms. The transactions tax is a one-time tax on property TRANSFERS. This skill focuses on the annual real estate tax.

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Section 3 — Tax base and valuation

3.1 — Annual Rental Value (ARV)

The tax base is the Annual Rental Value (ARV) of the property as determined by government assessors — NOT the market purchase price and NOT the actual rent (if leased).

Item	Rule	Source
Basis	Assessed annual rental value set by RETA valuation committees	Law 196/2008 Art 4–7
Valuation cycle	Every 5 years (revaluation of all properties)	Law 196/2008 Art 8
Factors	Location, condition, size, usage type, associated facilities	Law 196/2008 Art 5
Vacant vs let	Tax applies whether the property is let, owner-occupied, or vacant	Law 196/2008 Art 2
Dispute/appeal	Owner may appeal the assessed ARV within 60 days of notification; appeals can now be filed electronically (per 2026 amendment)	Law 196/2008 Art 18; Law 3/2026

3.2 — Deductions before applying the rate

Before the 10% tax rate is applied, two deductions are made:

1. Maintenance/management deduction — a statutory allowance for maintenance and management costs:
   • Residential property: deduct 30% of gross ARV
   • Non-residential property: deduct 32% of gross ARV
2. Exemption deduction — deduct the statutory exemption amount:
   • EGP 24,000 (pre-2026) / EGP 100,000 (post-2026, Law 3/2026) per residential unit
   • EGP 1,200 for non-residential units

The 30%/32% deduction is automatic — no receipts or proof of actual expenses required. It is built into the statute.

3.3 — Tax rate

Property type	Tax rate	Deduction	Statutory exemption
Residential	10% of net ARV	30% of gross ARV	EGP 24,000 (pre-2026) / EGP 100,000 (Law 3/2026)
Non-residential (commercial, industrial, administrative)	10% of net ARV	32% of gross ARV	EGP 1,200

Note on non-residential rate. Law 196/2008 Art 12 sets the rate at 10% for ALL property types. Some secondary sources reference a 20% rate for non-residential — this reflects earlier draft proposals and/or the wealth tax on rental income, NOT the annual property tax. The statutory annual rate is 10% across the board.

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Section 4 — Worked examples

Example 1: Residential property (pre-2026 threshold)

• Property: Cairo apartment
• Gross ARV: EGP 120,000/year
• Maintenance deduction (30%): EGP 36,000
• Net ARV: 120,000 – 36,000 = EGP 84,000
• Exemption deduction: EGP 24,000
• Taxable base: 84,000 – 24,000 = EGP 60,000
• Tax at 10%: EGP 6,000/year

Example 2: Residential property (post-2026 threshold, Law 3/2026)

• Property: Giza apartment
• Gross ARV: EGP 120,000/year
• Maintenance deduction (30%): EGP 36,000
• Net ARV: 120,000 – 36,000 = EGP 84,000
• Exemption deduction (Law 3/2026): EGP 100,000
• Taxable base: 84,000 – 100,000 = EGP 0 (fully exempt under new threshold)
• Tax at 10%: EGP 0/year

Example 3: Non-residential property

• Property: Commercial shop, downtown Cairo
• Gross ARV: EGP 200,000/year
• Maintenance deduction (32%): EGP 64,000
• Net ARV: 200,000 – 64,000 = EGP 136,000
• Exemption deduction: EGP 1,200
• Taxable base: 136,000 – 1,200 = EGP 134,800
• Tax at 10%: EGP 13,480/year

Example 4: Below-threshold residential

• Property: Small residential unit
• Gross ARV: EGP 24,000/year
• Maintenance deduction (30%): EGP 7,200
• Net ARV: 24,000 – 7,200 = EGP 16,800
• Net ARV is below exemption threshold → fully exempt, no tax due

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Section 5 — Exemptions

5.1 — Threshold exemptions (annual rental value)

Property type	Exemption threshold	Source
Residential	ARV ≤ EGP 24,000 (pre-2026) / ≤ EGP 100,000 (Law 3/2026)	Law 196/2008 Art 10; Law 3/2026
Non-residential	ARV ≤ EGP 1,200	Law 196/2008 Art 10

5.2 — Property-type exemptions (fully non-taxable)

The following properties are NOT subject to the real estate tax at all:

• State-owned properties (unless used for commercial purposes)
• Places of worship — mosques, churches, and registered religious institutions
• Public schools, universities, and hospitals (government and private)
• Registered charitable organisations and nonprofit entities
• Properties owned by foreign governments used for diplomatic purposes
• Under-construction properties — not taxed until fully built and registered
• Agricultural land — not subject to the built-property tax (separate agricultural land tax regime under Law 113/1939)

5.3 — Partial/conditional exemptions

• Newly constructed properties: may qualify for a 5-year exemption from completion (certain conditions apply per Law 196/2008 Art 11)
• Owner-occupied sole residence: exempt if it is the taxpayer's only property AND below the threshold (per Law 117/2014 amendments, the exemption applies to the aggregated value of all residential properties owned)
• Heritage/registered historic buildings: may negotiate deductions during restoration
• Vacant properties: unrented for 6+ months may qualify for partial relief (governorate discretion)

5.4 — 2026 amendments to exemptions (Law 3/2026)

Key changes introduced in March 2026:

Item	Old rule (pre-2026)	New rule (Law 3/2026)
Residential exemption threshold	EGP 24,000 ARV	EGP 100,000 ARV
Total exemption value	EGP 2,000,000 (aggregated property value)	EGP 8,000,000 (aggregated property value)
Declaration submission	Separate submission to each RETA office	Single submission to any RETA office
Late payment penalties	Accumulating	Cancelled (blanket waiver)
Timely-payment incentive	None	25% discount for on-time payment
Appeal filing	In person at local RETA office	Electronic filing available
Dispute settlement	100% of disputed tax	70% of disputed tax
Tax effect date	Retroactive from property registration	From date of declaration submission

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Section 6 — Filing and payment

Item	Rule	Source
Who must file	All property owners (individuals, companies, associations, public bodies) owning built real estate in Egypt	Law 196/2008 Art 2
Filing method	Annual declaration submitted to RETA office (Maamouria) — NOT the ETA e-filing portal	Law 196/2008 Art 25
Digital filing	Gradually transitioning to digital platforms (per Law 3/2026)	Law 3/2026
Payment frequency	Annual — payable in one installment or as notified by RETA	Law 196/2008 Art 30
Payment location	RETA offices or designated banks/post offices; digital channels being introduced	Law 196/2008 Art 30
Timely-payment discount	25% discount on tax value for on-time payment (post-2026)	Law 3/2026
Late payment penalty	Previously accumulating — cancelled under Law 3/2026 blanket waiver	Law 3/2026
Revaluation	Every 5 years by RETA valuation committees	Law 196/2008 Art 8
Appeal deadline	60 days from notification of assessed ARV	Law 196/2008 Art 18

Filing is NOT automated. Exemptions are not automatic — owners must proactively file a declaration and submit proof of eligibility (title deed, rental contract, valuation report, proof of eligibility for exemption category).

RETA ≠ ETA. The Real Estate Taxation Authority (RETA / المعمورة) is a separate authority from the Egyptian Tax Authority (ETA). Real estate tax declarations go to RETA offices, NOT the ETA online portal. There are 44 RETA branch offices across Egypt.

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Section 7 — CIT non-deductibility (critical audit issue)

This is the single most important compliance point for corporate taxpayers.

Item	Rule	Source
Deductibility for CIT	NOT deductible — real estate tax is a non-business tax and is disallowed as a deduction from taxable profits	Law 91/2005 Art 23
Mechanism	Real estate tax is added back to accounting profit in the CIT return as a non-deductible expense	Law 91/2005 Art 23
Rationale	Art 23 disallows "taxes and duties" that are not business taxes (income tax, VAT, customs). Real estate tax is a property tax on ownership — not a cost of generating business income
Exception	REAL ESTATE HELD FOR RE-SALE (inventory/stock) may qualify for different treatment — verify with advisor
Audit risk	High — many companies incorrectly deduct real estate tax on their business premises. This is a common audit finding by ETA

Practical guidance for the reviewer

When preparing or reviewing a CIT return:

1. Check the trial balance for real estate tax expense accounts
2. Add back the full amount of real estate tax in the CIT reconciliation (Form 10 —Schedule of adjustments)
3. Document the add-back with the RETA receipt as supporting evidence
4. If the property is held for re-sale (developer), seek specialist advice on classification
5. Real estate TRANSACTIONS tax (2.5% on purchase) is also generally NOT deductible — it is a capital cost of acquiring the asset

Note. This non-deductibility is specific to the annual real estate tax. Rental INCOME taxed under the wealth tax regime (Art 47, Law 91/2005) is a separate matter — that IS the income tax itself, not a deduction question.

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Section 8 — Real estate transactions tax (context only)

Item	Rule	Source
Rate	2.5% of the property's sale value	Law 196/2008 Art 40
Timing	Due on transfer (registration)	Law 196/2008 Art 40
Exemptions	Family transactions, inheritance transfers, some investment-related sales	Law 196/2008 Art 41
Administered by	RETA — separate from annual property tax	Law 196/2008

This is a one-time transfer tax, NOT the annual property tax. See the property registration process (Law 114/1946) for the registration mechanics.

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Section 9 — Interaction with other Egypt taxes

Tax	Relationship	Skill
CIT (corporate income tax)	Real estate tax is NOT deductible — must add back in CIT reconciliation	eg-corporate-tax
Personal income tax	Real estate wealth tax on rental income (10%–27.5%) is collected via the income tax return	eg-income-tax
VAT	No interaction — property tax is not a VAT input	egypt-vat
Stamp duty	Separate levy on property registration documents	eg-stamp-duty
Transfer pricing	No direct interaction	eg-transfer-pricing

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Section 10 — Sources and verification

Source	Reference	URL
Law 196/2008	Unified Real Estate Tax Law (primary statute)	—
Law 117/2014	Amendments to Law 196/2008 (exemption threshold increases)	—
Law 3/2026	March 2026 amendments (exemption threshold, digital filing, penalty waiver)	—
Law 91/2005 Art 23	CIT non-deductibility of non-business taxes	—
Law 91/2005 Art 47	Real estate wealth tax on rental income	—
PwC Worldwide Tax Summaries	Egypt — property tax	taxsummaries.pwc.com/egypt
Andersen Egypt	Real Estate Tax Laws in Egypt (English law translation)	eg.andersen.com/real-estate-tax-laws
RETA	Real Estate Taxation Authority (44 offices nationwide)	—

Verify before relying. Egyptian property tax thresholds and exemption amounts change frequently. The 2026 amendments (Law 3/2026) significantly raised thresholds and introduced new facilitations. Always confirm current values against the official sources above before filing.

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Self-check

Before delivering any real estate tax computation or advisory to the reviewer:

• Did you use the ARV (assessed rental value), NOT the market value or actual rent?
• Did you apply the correct deduction (30% residential, 32% non-residential)?
• Did you apply the correct exemption threshold (EGP 24,000 or EGP 100,000 post-2026 for residential; EGP 1,200 for non-residential)?
• Did you apply the 10% rate to the NET ARV after both deductions?
• Did you check whether the property qualifies for a property-type exemption (state, religious, hospital, school, charity)?
• If the client is a company — did you flag the CIT non-deductibility add-back?
• Did you verify the current exemption threshold against the latest law (Law 3/2026)?
• Did you confirm filing is with RETA, not the ETA e-filing portal?
• Did you check whether the 25% timely-payment discount (Law 3/2026) applies?
• Where any figure was uncertain, did you mark it "verify before relying" and cite the source?

Contributed by Ahmed Hassan.