New Property Tax Law

[queenie40something]

Hi Georgina

I have the pdf too but again in Arabic. Im trying to see if any one can translate it. If you have any luck before I do can you be so kind as to email me the translated version and vice versa xx

 

[Georgina]

Hi Georgina

I have the pdf too but again in Arabic. Im trying to see if any one can translate it. If you have any luck before I do can you be so kind as to email me the translated version and vice versa xx

Mashi ya Alison :smile:

 

[Georgina]

Customer Services in El Gouna said they will try and find out more information during the week. My friend has arranged an appointment with them next Saturday for an update.

 

[queenie40something]

Hi Georgina - I have sent the form to a friend in UK, her dad is Egyptian and she is printing it out and nipping it round to him on Monday - Im hoping he will fill it out for me

Found this info

Finance Minister Youssef Boutros-Ghali said that individuals and corporations should submit real estate assets by the end of the year for valuation.

Valuations will take into account location, quality of construction, provision of basic services and proximity to public parks, health and education facilities.

If property owners feel that their homes have been valued incorrectly and they feel the taxes levied against them are unfair, then they can apply to appeal against the taxes within sixty days of the valuation and their home will be revalued within 30 days.

Properties will be re-evaluated every five years.

The completed form(s) can be submitted by the proprietor or someone on his behalf.

The proprietor shall, in case of owning several properties in different locations, submit the form(s) to the nearest Real Estate Tax office, regardless of the properties locations.

Registration of properties is not a pre-condition for submission of forms; unregistered properties must be declared.

 

[CMChris]

Hi Queenie and Georgina

Do you know if the developers will be sorting these forms out for their clients or is this something we have to try and sort out ourselves? I'm assuming that as its for an Egyptian Tax Office any completed forms will have to be in Arabic, which will be a big problem for a lot of us. Another thought I had on this was how will they (the Tax man) know who owns what if it isn't registered? Or will they contact developers for owners details? I know you won't know these answers but someone who reads the forum might, I live in hope.

Thanks
Christine

 

[Alan Cockayne]

Taxation bands

Dear All,

My clients have drawn my attention to this thread.

I confirm that the new property tax law is applicable on the next year. Properties subject to the new law are only those which purchase price exceed EGP 400,000. Those which are less in price than the aforementioned figure are entirely exempted.

Tax is estimated as 14% of the rental value of the property per annum. Values will be determined via governmental committees that will be sent to inspect property values in Egypt's various regions and areas.
Zeiad Yehia
Solicitor

My clients too are concerned.

As I see it, the legistical excercise and the implimentations of this new tax on properties is just too immense to be enforceable. Not only does it rely on owners registering, the filling in of forms (as we would for council tax) but the valuations have to be exact. Who is trustworthy enough to set the property vaues?
The developer? They've already artificially inflated prices by 200% in 5 years.

I see it as a tax on owning properties rather than a "property tax" and it will deter even more investors. Done badly it could create greater "Grey Areas" with even more buyers not wanting to declare true documentation and those handling the tax running off with it.

Heard the phrase "hands in the till"

Maybe construction costs have increased by 10% in 3 years but this new law coming at a time when the country is building more units than there are buyers, I'm not sure it's a wise move.

Alan - Coralife-Style Consultants.

 

[queenie40something]

Hi I was told that the developer has to inform the relevant authorities of who has bought a property regardless of whether it is registered or not. I have emailed the relevant minister - dont know if I will get a response - and also my own developer too for more info. The form will be available online soon.

 

[CMChris]

Hi I was told that the developer has to inform the relevant authorities of who has bought a property regardless of whether it is registered or not. I have emailed the relevant minister - dont know if I will get a response - and also my own developer too for more info. The form will be available online soon.

Maybe our kind developers will be paying it for us!!!!!!!!!!!!

Thanks for your reply Queenie.

 

[M Butler]

Hi I was told that the developer has to inform the relevant authorities of who has bought a property regardless of whether it is registered or not. I have emailed the relevant minister - dont know if I will get a response - and also my own developer too for more info. The form will be available online soon.

Our developer in El Gouna has said that it is nothing to do with them and that we are basically on our own. However, customer services are trying to find out what is happening and will let me know as soon as they can.

The web site is: www.rta.gov.eg but I can't seem to access it..........

Margaret

 

[CMChris]

I managed to get the site to load and have copied the front page. You have to sign up then the relevant page is 'under construction'!!!! So that doesn't help much. If you want the breakdown on the new law PM me your email and I'll send you a copy.

 

[M Butler]

I managed to get the site to load and have copied the front page. You have to sign up then the relevant page is 'under construction'!!!! So that doesn't help much. If you want the breakdown on the new law PM me your email and I'll send you a copy.

Hi,

I have managed to get a copy of the form and the assessment calculator. We did manage to get into the website eventually and found the same as you. You have to wonder if, come November and the website is not working, are they going to be up and running come January??????

Margaret

 

[queenie40something]

Zeiad has put lots of info and updates here http://www.propertyforum.com/forum/egypt-property/6847-legal-questions-answers-egyptian-lawyer-47.html

 

[Georgina]

Hurghada Office

My friend has been into Hurghada today to find the property tax office. He said they were very helpful and spoke good English. The office is located in El Dahar, just a few minutes walk from the El Gouna bus stop. It is on El Masaleh Street, on the left just after the junction with Youseff Maschkour Street. This is the street that runs behind the grey Govenment store building and fruit market. A poor map attached.

You can obtain copies of the (Arabic only) registration forms from there. They require the completed form (in Arabic) a copy of the owner's passport including visa page and last entry into Egypt stamp page and a copy of your property purchase contract. They said that the use of a lawyer is not necessary you just need to find someone to translate.

I haven't been to the office myself.

 

[jennifersalter]

hi - a naive question - but would non residents have to pay this if their property is not registered ?

Does anybody have an English translation of the property tax form?

Jenny

 

[queenie40something]

As far as I can read it if you are still off plan you dont have to get the form in by end of 2009 - if had handover you have to - developers are being given the forms from the government to pass to owners.

I am still working on the translation - if anyone else gets before can they pm me please xx

 

[PhilB]

I have just received an e-mail informing me that i have to complete a Residential Tax Law form, which is in arabic and submit to El Tor City by 31/12. If I want Sierra Resort management to do this it will cost £110. Has anyone else received the e-mail and do I have to do this?

 

[Georgina]

I have just received an e-mail informing me that i have to complete a Residential Tax Law form, which is in arabic and submit to El Tor City by 31/12. If I want Sierra Resort management to do this it will cost £110. Has anyone else received the e-mail and do I have to do this?

Queenie40something has an English translation of the form and received the same email. It is quite simple as most of the answers are ticks in boxes. You just need to write your name and address in Arabic. GBP110 is twice the average monthly wage in Egypt! I am sure Alison can advise you.

 

[queenie40something]

Hi there are a few of us at Sierra next month and we are going to get a minibus down to El Tor and hand our forms in asno way we are giving Sierra £110. We will try and meet up with Z to se if he can help us fill in the parts eg address in Arabic. Yes you have to sbmit the form by the end of the year of you will be fined. Dont forget the developer has your passport details and Im sure the government have the power to make them hand them over. I for one dont want a fine or risk refused entry into Egypt. Not worth risking it.

 

[thelfamily]

approx how much are people looking at for property around £30,000 to £50,000 please

 

[distant dreamer]

I'm getting really confused now as seem to be getting conflicting advice. Regarding our completed property at Sahl Hasheesh, an owner has just contact Egyptian Resorts Company who are responsible for the entire Sahl Hasheesh development and received the following reply:
"Re the Property Tax it is not finalized by the Parliament and is not expected to be until sometime next year, it is also unclear exactly what and who it applies to, when you receive official notice I suggest you contact ................."
Is it possible that some new tourist areas will be treated differently to other places
Any advice would be much appreciated.

Thanks

Penny