Introduction
On 2 April 2026, the Official Gazette published law no. 3 of 2026 (the “Amending Law”), which amends the real estate tax law no. 196 of 2008 (the “Real Estate Tax Law”). The Amending Law entered into force on the day following its publication (the “Effective Date”). The Executive Regulations of the Real Estate Tax Law are expected to be amended within six (6) months of the Effective Date to implement the changes and reforms introduced by the Amending Law.
The Amending Law forms part of the Egyptian government’s broader tax reform agenda, and aims to ease the burden on taxpayers, simplify compliance, promote transparency, and modernise administrative processes.
Further tax reform measures followed shortly thereafter as part of the government’s ongoing tax reform plan, introduced through the following laws, recently issued and published in the Official Gazette on 28 July 2026:
This publication focuses on the Amending Law, which introduces changes carrying immediate practical consequences for property owners in Egypt, from a substantially higher exemption threshold to new mechanisms for resolving long-standing disputes with the Real Estate Tax Authority (“RTA”). Where relevant, it also situates these changes within the broader tax reform package summarised above.
The key reforms examined in this publication include:
It further considers related developments introduced as part of the same reform wave, including amendments to the Real Estate Disposal Tax under the Income Tax Law and relevant changes to the Value-Added Tax Law.
Key Reforms
Pursuant to the Real Estate Tax Law, real estate tax is imposed on built properties at a rate of 10% (ten per cent) of the property’s annual rental value. For the purpose of calculating the tax base, a statutory deduction of 30% (thirty per cent) of the annual rental value is available for residential properties, while a deduction of 32% (thirty-two percent) applies to non-residential properties. These deductions are deemed to cover all expenses incurred by the taxpayer in relation to the property, including maintenance costs.
The Real Estate Tax Law provides for the establishment of committees in each governorate (the “Inventory and Valuation Committees”) responsible for assessing the annual rental value of real properties. These committees survey real properties and assess their annual rental value based on properties’ classification according to certain standards. In this respect, the RTA conducts a comprehensive inventory of all real properties in Egypt every five (5) years to reassess their rental values. Furthermore, an annual inventory is conducted to identify newly constructed buildings, as well as any additions or substantial modifications made to existing buildings.
The Amending Law refines the framework governing the assessment of the annual rental value of the properties, increasing valuation transparency while maintaining the tax rate and the existing five (5) year valuation cycle.
The assessed annual rental value remains effective for a period of five (5) years, with the newly assessed value becoming applicable as of the day following the expiry of the preceding valuation period. The Amending Law also retains the existing requirement that reassessment procedures be initiated no less than one (1) year and no more than three (3) years before the expiry of each valuation cycle.
Importantly, the Amending Law introduces a new obligation requiring the RTA to publish indicative pricing maps at least ninety (90) days before the implementation of new valuations. The Executive Regulations are to set out the bases and criteria for valuation, as well as the applicable reassessment procedures.
A cornerstone of the reform is the substantial increase in the real estate tax exemption threshold for a property used as the primary residence of the taxpayer and their family, comprising taxpayer’s spouse and minor children, to EGP 100,000 (one hundred thousand Egyptian pounds). According to the RTA’s official website, this corresponds to a market value threshold of EGP 8,000,000 (eight million Egyptian pounds). Any amount exceeding such threshold shall be subject to tax. Secondary homes of taxpayers remain fully taxable.
Moreover, the Amending Law provides that the Cabinet is authorised to increase the above exemption threshold based on economic and social considerations.
The Amending Law introduces a more structured and enhanced framework governing tax return filing obligations, in particular through two (2) key adjustments: (a) a consolidated tax return covering all real estate properties owned or utilised by the taxpayer; and (b) the option to file tax returns electronically.
The Amending Law retains the filing deadlines prescribed under the Real Estate Tax Law prior to its amendment. However, it grants the Minister of Finance (the “Minister”) the authority to extend the statutory deadlines for the submission of tax returns for a period not exceeding six (6) months.
Taxpayers remain required to submit their real estate tax returns to the competent tax office with jurisdiction over the relevant property. The Amending Law, however, addresses a long-standing procedural burden for taxpayers owning or utilising multiple properties in different jurisdictions. Rather than filing a separate tax return with each competent tax office, such taxpayers may now submit a single consolidated tax return to any competent tax office, provided that the return includes details of all properties subject to the filing.
From a procedural standpoint, the Amending Law expressly permits the taxpayers to submit their tax returns either electronically or in physical form. The Executive Regulations will prescribe the applicable filing procedures, the required information and data fields, and any other formal requirements governing such submissions.
The Amending Law imposes additional reporting obligations on certain third parties, reflecting an evident aim to strengthen the RTA data infrastructure and enable more accurate identification and valuation of taxable properties independently of taxpayer self-reporting.
Licensed operators of hotel establishments, owners’ associations, and managers of residential compounds are required to submit specified data on persons holding rights over the relevant properties whether ownership, usufruct, or exploitation rights to the competent tax office, within the prescribed deadlines. Such data must include their names, national identification numbers, place of residence, the area size of each property, and any additional data specified under the Executive Regulations.
Electricity, water, sanitation, and natural gas companies, as well as local municipalities, public authorities, and other public legal persons, are required to provide the RTA with the data and supporting documentation requested for purposes of identifying taxable properties and determining their annual rental value.
Under the Real Estate Tax Law, annual rental value assessments are publicly announced, and a notice thereof is published in the Official Gazette. Taxpayers are subsequently notified of the assessed annual rental value and are entitled to challenge the assessment within sixty (60) days from the date of such notification.
Appeals are heard by the Appeal Committees established in each governorate, the composition and decision-making procedures of which are prescribed under the Real Estate Tax Law. The Amending Law retains the existing requirement that an Appeal Committee must issue its decision within thirty (30) days from the date on which the appeal is filed, and that such decision is final. Importantly, the Amending Law confirms that the tax shall become due and payable based on the Appeal Committee’s decision. The filing of a judicial challenge against such decision before the competent court shall not prevent the collection of the tax or the commencement of administrative attachment proceedings for its recovery.
Furthermore, the Amending Law introduces two (2) major enhancements, as follows:
In addition to the existing channels, the Amending Law allows taxpayers to submit appeals challenging rental value assessments by approved electronic means.
The Amending Law cancels the right of the Real Estate Tax Districts to challenge inventory and assessment decisions issued by the Inventory and Valuation Committees. Prior to the Amending Law, the Real Estate Tax Districts had the right to challenge such decisions where they considered the assessed value to understate the actual rental value.
Further, the Amending Law introduces a provision requiring the dismissal of appeals filed by the Real Estate Tax Districts that remain undecided as of the Effective Date.
The Amending Law also broadens the circumstances in which real estate tax ceases to apply. In addition to the existing grounds for the cessation of tax, relief is now available where unforeseen circumstances or events of force majeure prevent the use or exploitation of a property, whether in whole or in part.
In this regard, the tax ceases to be payable pursuant to a decision issued by the competent Real Estate Tax District, either on its own initiative or upon an application submitted by the taxpayer together with supporting documents. Such cessation shall take effect from the date on which the relevant ground for relief arises and shall continue until the date on which such ground ceases to exist.
An important amendment introduced by the Amending Law is that applications for the cessation of tax liability are now determined by the competent Real Estate Tax District, whereas, prior to the Amending Law, such applications were decided by the Inventory and Valuation Committees. Appeals against such decisions continue to be submitted to the Appeal Committees.
A tax incentive is granted to taxpayers who timely submit their tax returns, in the form of a deduction from the annual tax due for the relevant tax period. The incentive is set at 25% (twenty-five per cent) for residential properties and 10% (ten per cent) for non-residential properties.
The Amending Law grants the Ministry of Finance (the “MoF”) the authority to establish a tax incentive at a 5% (five per cent) rate for taxpayers who make advance payments on account of the tax. The incentive is intended to encourage taxpayers to timely file their tax returns and make payments on account of the tax.
In line with Egypt’s digital transformation agenda and subject to the provisions of Law No. 18 of 2019, which regulates the use of non-cash payment methods, the Amending Law requires that all real estate tax liabilities, including late payment charges, be settled through electronic payment methods in accordance with procedures to be issued by the MoF. Accordingly, receipts issued in accordance with such procedures shall constitute valid proof of payment.
In this respect, it is important to highlight that the RTA announced on its official website that the MoF, in cooperation with RTA and E-Tax, launched Egypt’s first Real Estate Tax mobile application. The application enables taxpayers to access key real estate tax services electronically without visiting tax offices.
The application allows users to file real estate tax returns, pay outstanding tax liabilities, make payments on account of tax, and submit applications for the principal residence exemption. The initiative forms part of the Egyptian government’s digital transformation strategy, with the aim of simplifying procedures, improving access to real estate tax services, and enhancing the overall taxpayer experience. It is worth noting that the mobile application was only recently launched and, accordingly, there has not yet been sufficient user feedback to assess its practical effectiveness.
The Amending Law introduces a framework allowing for the partial or full write-off of tax liabilities, including late payment charges, in the following circumstances:
Applications for tax write-off are decided by committees established by a decision of the Minister or his authorised representative. The committee must decide the application within thirty (30) days from the date of its submission or its referral by the competent tax office. The committee’s recommendations become effective upon approval by the Minister or his authorised representative. The approval decision may be withdrawn within the legally prescribed period if it is subsequently found to have been based on incorrect grounds.
The Amending Law introduces several relief mechanisms aimed at resolving outstanding real estate tax obligations, as per the following:
Taxpayers who settle outstanding real estate taxes on built properties either prior to the Effective Date or within six (6) months thereafter, extendable once for an equivalent period by the Minister, are exempt from late payment charges.
Furthermore, a cap has been introduced on late payment charges, such that they may not exceed the principal amount of the tax due.
For the avoidance of doubt, the waiver of late-payment charges referenced above constitutes a transitional measure that applies only to taxpayers who settle outstanding real estate taxes on built properties either prior to the Effective Date or within six (6) months thereafter. By contrast, the cap on late-payment charges, such that they may not exceed the principal tax amount, is a permanent provision newly introduced by the Amending Law.
The taxpayer shall be exempt from paying any real estate tax due or outstanding in respect of buildings that have not previously been inventoried, had their annual rental value assessed, or been recorded in the registers and records of the RTA, or in respect of which no tax notification has been issued, for the tax periods preceding the Effective Date. Such exemption shall apply provided that the taxpayer submits the tax return in accordance with the Real Estate Tax Law within one (1) year from the Effective Date.
The Amending Law permits the settlement of disputes pending before the Appeal Committees or the courts, at any stage of litigation, upon payment of 70% (seventy per cent) of the disputed tax amount. The taxpayer must submit a settlement application to the RTA within six (6) months from the Effective Date, extendable for an additional six (6) months by the Minister. Upon payment by the taxpayer of the prescribed percentage, the taxpayer shall be released from liability in respect of the disputed tax.
Other tax reforms
On 28 July 2026, the Income Tax Law No. 91 of 2005 was amended pursuant to Law No. 151 of 2026 (the “Amendment”) introduces certain key changes to the applicable real estate disposal tax, while leaving the core structure of the tax, including its 2.5% (two point five per cent) rate, its scope, and several existing exclusions intact.
Prior to the recent Amendment, Item 28 of the list of goods and services exempt from value-added tax (“VAT”) under the VAT Law No. 67 of 2016 included the sale and lease of vacant land, agricultural land, and residential and non-residential buildings and units.
Pursuant to the recent Amendment introduced by Law No. 149 of 2026, the scope of this exemption has been narrowed with respect to non-residential buildings and units. The exemption no longer applies to the lease of buildings and units used as independent premises for the management of a business activity, even if such premises have a commercial character and involves dealings with customers. However, an exception is made for buildings and units used as premises for religious, charitable, social, health, educational, and other activities as may be proposed by the Minister in accordance with the public interest.
Conclusion
The Amending Law represents a significant step in the continued modernisation of Egypt’s real estate tax regime. By combining greater transparency, digital filing and payment options, a more structured appeals process, and targeted relief measures and tax incentives, the Amending Law seeks to improve compliance while easing administrative burdens on taxpayers.
At the same time, the reforms place greater emphasis on timely reporting, payment, and engagement with the RTA’s procedures. Property owners should therefore review their existing positions carefully and prepare for the practical implications of the new rules.
Taken together with the other amendments to the Income Tax Law and the VAT Law, the broader reform package also signals a wider effort to refine the tax treatment of real estate disposals and lease of certain non-residential properties, while preserving the core structure of the relevant taxes. These developments reinforce the government’s commitment to modernising the tax framework, enhancing clarity, and strengthening administrative efficiency across the tax landscape affecting real estate properties.
The contributors to this article are Dr. Mohamed Fathy, Partner and Head of Real Estate, Tourism and Hospitality, Hadil Helmy, Senior Associate, and Hannah Mahran, Associate.
