Latest news with #OldRentLaw
Zawya
2 days ago
- Business
- Zawya
Egypt: Tax experts project $309mln revenue boost following Old Rent Law ratification
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.
CairoScene
2 days ago
- Business
- CairoScene
Experts Forecast EGP 15 Billion Revenue Surge Following New Rent Law
Previously, under Law No. 49/1977, properties under old rent contracts were exempt from all property taxes. Aug 11, 2025 The Egyptian Association of Tax Experts (EATE) projects a minimum EGP 15 billion increase in state treasury revenues within the first year following the ratification of Law No. 165/2025, the updated Old Rent Law. Previously, under Law No. 49/1977, properties under old rent contracts were exempt from all property taxes and excluded from the general income tax base. The new law lifts these exemptions, subjecting these units to property tax and including their revenues in income tax calculations. Egypt has approximately 42 million housing units, of which 3.018 million (about 7%) fall under old rent contracts, including apartments, houses, shops, and garages. The new law categorises old rent units into three zones: premium areas, where rents are up to 20 times the old rate with a minimum of EGP 1,000 and most properties expected to be taxed; mid-range areas, where rents are up to 10 times the old rate with a minimum of EGP 400 and about half expected to be taxed; and economic areas, where rents are up to 10 times the old rate with a minimum of EGP 250 and no taxation expected. Rental valuations must be completed by survey committees within three months of the law's implementation, factoring in location, size, infrastructure, and service access. Property tax will be calculated as 10% of net rental value, after deducting 30% for residential unit expenses and 32% for commercial or administrative expenses.
Daily News Egypt
3 days ago
- Business
- Daily News Egypt
Tax experts project EGP 15bn revenue boost following Old Rent Law ratification
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.
Egypt Independent
5 days ago
- Politics
- Egypt Independent
Legal challenges to the Old Rent Law begin after ratification: Will the Constitutional Court intervene?
Following President Abdel Fattah al-Sisi's approval of the new Old Rent Law last Monday, a legal and constitutional debate has erupted over the future of the rental relationship between landlords and tenants. The new law introduces fundamental changes, which some have described as 'revolutionary,' to one of Egypt's most sensitive social and economic issues in decades. The law, which was finally approved by parliament after years of anticipation and conflict between landlords and tenants, has not put an end to legal disputes. Challenges are now being directed to the Supreme Constitutional Court, with calls for a constitutional review, especially concerning the law's intervention in contracts signed decades ago, some dating back to the first half of the last century. Dr. Hamdi Omar, a professor of constitutional law and a member of the Committee of Ten Experts who drafted the 2014 constitution, told Al-Masry Al-Youm that the Old Rent Law can be challenged before the Constitutional Court, despite the president's official approval. Omar explained that a challenge cannot be filed directly with the Constitutional Court. Instead, it must be initiated by an affected tenant filing a lawsuit with a competent civil court. During the proceedings, the tenant can argue for the law's unconstitutionality. If the judge finds the request to be serious, they can postpone the case for three months to give the affected party an opportunity to file a formal lawsuit with the Supreme Constitutional Court. He pointed out that the Constitutional Court does not accept direct lawsuits from individuals in order to maintain its organization and prevent legal chaos. Rather, the challenge must come from a judge presiding over an existing case. Dr. Omar revealed that the Constitutional Court has the authority to review the constitutionality of the Old Rent law on its own initiative if it finds any suspicion of unconstitutionality, even after President El-Sisi's approval. He predicted that, in either case, a final ruling on this law would not be issued for at least five years due to the usual legal procedures and judicial backlogs. He added that parliament, as the legislative authority, has the right to amend the law. He noted that the Constitutional Court had previously ruled in the 1990s that old leases could not be extended for more than one generation of heirs. The court also recently issued an important ruling calling for 'adjusting the rental value' to match the current economic situation. This gives parliament the right to reconsider the entire law. Dr. Omar emphasized that the Egyptian constitution protects both private property and the 'right to housing' simultaneously. This puts the legislator in a difficult position: how to strike a balance between a landlord who seeks a fair return on their property and a tenant who believes their contract was signed according to legal rules that had been in place for decades. He explained that while the contract between the two parties was legitimate at the time of its signing, the passage of time and the change in economic and social conditions necessitated a new law to reorganize the relationship. He also noted that many old rental contracts are now held by heirs, meaning the original contractual intent is absent. This, he said, gives the legislator a strong push to reorganize the relationship. Dr. Ahmed Saeed, a professor of constitutional law, stated that the new law in its current form carries a suspicion of unconstitutionality, especially if it includes the annulment of old contracts within a certain timeframe. He considers this a clear interference with the free will of contracting parties, which contradicts the provisions of the constitution. He affirmed that the constitution does not prevent parliament from intervening to regulate rental values, but this must be done gradually, respecting old contracts without completely nullifying them. Saeed proposed setting a starting rental value of EGP 1,000 per month, with an annual increase of 20% to 30 percent, until the rent gradually matches market values over a period of no less than seven years. He noted that the Supreme Constitutional Court had officially requested this amendment in its ruling issued in November 2024, emphasizing that the Egyptian parliament is obligated to issue legislation to address this point before the end of the current legislative session. He stressed that the court did not rule to abolish the old rent law itself, but merely rejected the stabilization of rental values for long-term contracts without justification. This means that a legislative remedy is necessary without infringing upon the core of the old contracts. The Constitutional Court issued a historic ruling in November 2024, affirming that stabilizing the rental value of lease contracts for up to 50 years constitutes a breach of economic justice. It ordered a legislative amendment to restore balance between the two parties. In response to this ruling, the House of Representatives voted to give final approval to the draft law last June, amid internal division but with a majority vote in favor of the law, before it was submitted to the President, who officially ratified it last Monday.
Daily News Egypt
6 days ago
- Business
- Daily News Egypt
Egypt to inaugurate Grand Egyptian Museum on 1 November
Prime Minister Mostafa Madbouly announced on Wednesday that President Abdel Fattah Al-Sisi has approved 1 November as the official date for the complete opening of the Grand Egyptian Museum (GEM). Speaking at the start of the weekly Cabinet meeting, held at its headquarters in the New Administrative Capital, Madbouly instructed all relevant ministries and authorities to finalise preparations to ensure the museum and its surrounding area are fully ready. He stressed that the opening must be presented in a manner befitting its cultural and historical significance. The premier said preparations are underway to make the event exceptional, adding another milestone to Egypt's record of landmark national occasions. The inauguration is expected to draw distinguished international guests and feature a series of accompanying cultural events. Located near the Giza Pyramids, the GEM will be the largest archaeological museum in the world, spanning 490,000 square metres with panoramic pyramid views. Designed by Irish firm Heneghan Peng Architects, it will display over 100,000 artefacts from Egypt's ancient history—including the complete Tutankhamun collection, exhibited together for the first time since its discovery in 1922—alongside monumental treasures such as the 3,200-year-old statue of Ramses II. The museum also features advanced conservation laboratories, expansive exhibition halls, educational facilities, and visitor amenities. It is envisioned as a global cultural landmark that will boost Egypt's tourism industry, complement the Giza Plateau, and position the country as a premier hub for archaeology and heritage preservation. During the meeting, Madbouly also reviewed recent presidential activities, including President Al-Sisi's reception of Vietnamese President Luong Cuong on Tuesday. The two leaders agreed to elevate bilateral relations to a comprehensive partnership, with enhanced cooperation in agriculture, manufacturing, trade, and investment, supported by both governments and the private sector. In a separate matter, following the ratification of amendments to the Old Rent Law, Madbouly instructed the concerned ministers to begin immediate implementation of the law's provisions. He affirmed the state's commitment to supporting tenants, providing alternative housing, and personally monitoring the matter on a regular basis.
