The Egyptian Association of Tax Experts (EATE) expects state treasury revenues to rise by at least EGP 15bn in the first year following President Abdel Fattah Al-Sisi’s ratification of Law No. 165/2025, commonly known as the Old Rent Law.
Ashraf Abdel Ghany, tax accountant and founder of the EATE, said that, according to data from the Central Agency for Public Mobilization and Statistics (CAPMAS), Egypt has nearly 42 million housing units, comprising freehold, old rent, and new rent properties. Of these, 3.018 million units—covering apartments, houses, shops, and garages—fall under old rent contracts, representing about 7% of all housing units nationwide.
Abdel Ghany noted that Law No. 49/1977 had exempted old rent units from all types of property taxes, both original and additional, and excluded their revenues from the general income tax base. However, under the newly ratified law, these exemptions will be abolished, meaning old rent units will now be subject to property tax, and their revenues will also be included in the general income tax base.
The new law classifies old rent units into three categories. The first covers prime areas, where rental values will increase to 20 times the old rate, with a minimum rent of EGP 1,000. Most properties in this category are expected to be taxed. The second covers mid-range areas, where rents will rise to 10 times the old rate, with a minimum of EGP 400. About half of these units are expected to be subject to tax. The third category includes economic areas, where rents will also rise to 10 times the old rate, with a minimum of EGP 250. Properties in this category are not expected to be taxed.
Abdel Ghany explained that the law mandates survey committees to determine the rental value for each area within three months of its enforcement. The valuation will be based on factors such as geographic location, property size, road and transport networks, and the availability of utilities and services.
Once valuations are set, the property tax will be calculated at a rate of 10% of the net rental value, after deducting 30% as expenses for residential units and 32% for commercial and administrative units.
