Ahmed Al-Sadiq, Head of Egypt’s Real Estate Taxation Authority (RTA), said that following recent amendments to the Real Estate Tax Law, only around 2 million property units out of an estimated 55 million nationwide will be subject to residential property tax.
Al-Sadiq added that annual revenues from the amended tax on built residential properties are projected to reach approximately EGP 20bn. His remarks came in response to a question by MP Mostafa Salem, Deputy Head of the parliamentary committee, regarding the anticipated fiscal impact of the legislative changes.
Exemption threshold raised
The amendments include raising the residential tax exemption threshold to a net annual rental value of EGP 100,000, which Al-Sadiq said corresponds to an estimated market value of roughly EGP 8m, based on discussions concluded by the Egyptian Senate.
In January 2026, the Senate approved amendments to Law No. 196 of 2008 – the Real Estate Taxation Law – as part of broader efforts to shield middle-income households from the impact of rising property valuations.
Under the revised framework, the exemption threshold for an individual’s primary, owner-occupied residence has been raised from properties valued at up to EGP 2m to those valued at up to EGP 8m, or with a net annual rental value of EGP 100,000.
The amendments maintain the “one property” rule, meaning the exemption applies solely to a single residence used as the family’s main home. Any additional properties – including second homes, vacation units or other residential holdings – remain subject to taxation.
The changes are expected to significantly narrow the tax base, confining liability largely to higher-value residential units while preserving exemptions for the majority of homeowners.
According to official data, Egypt’s total real estate wealth is estimated at 55 million units, comprising 47 million residential properties and around 8 million units classified as commercial, secondary or seasonal properties.
Investment and digital transformation
Al-Sadiq noted that the Real Estate Taxation Authority employs approximately 19,000 staff members across Egypt’s governorates.
He also revealed that investment allocations in the new state budget amount to roughly EGP 1.2bn, aimed at supporting the authority’s modernisation drive and operational upgrades.
The authority is accelerating its transition toward full digitalisation, in line with the government’s broader digital transformation strategy. Al-Sadiq said mechanised systems are increasingly being deployed to enhance efficiency, accuracy and transparency in property valuation and tax collection.
As part of this shift, the authority is preparing a public awareness campaign to be launched during the upcoming Ramadan season, with the objective of informing citizens about the legislative amendments and expanded automated services.
The updated property tax framework is expected to contribute to strengthening public revenues while aligning with wider fiscal reform efforts, as policymakers seek to balance revenue mobilisation with expanded residential exemptions.
