1. What is the real estate tax, and who is liable to pay it?

The real estate tax is a tax payable by the owner, usufructuary, or person exploiting the property. It is imposed on a real estate unit in certain cases, including when the unit is ready for use, even if it is vacant, or when the unit is unfinished but is being used.

The tax is determined based on the estimated annual rental value of the unit and is calculated at 10% of this value after deducting maintenance expenses and the applicable tax exemption threshold, in accordance with the provisions of the law.

2. Is every real estate unit subject to tax?

No. The law specifies certain cases and thresholds for tax exemption, including the exemption threshold for the family’s principal private residence. One residential unit owned by the husband, wife, and minor children is exempt, provided that its market value does not exceed EGP 8 million.

3. When should the tax return be filed, and is everyone required to file a return even if the unit is tax-exempt?

A tax return must be filed every five years for all properties owned by the taxpayer. An annual return must also be filed if a new unit is purchased or if changes are made to units previously declared, such as combining two units, dividing a unit, or changing its use from residential to non-residential or vice versa.

Every owner of a residential or non-residential property or real estate unit, whether a natural or legal person, is required to file a tax return, even if the unit is tax-exempt. In such cases, the return should include a request for exemption.

A tenant, however, is not an owner, usufructuary, or person exploiting the property and is therefore not required to file a tax return.

4. What is new about the tax return, and how can it be filed?

The tax return has become simplified, unified, and electronic. Previously, taxpayers had to file a separate return with each competent tax office, whether within the same governorate or in different governorates.

Taxpayers can now file a single return covering all their properties electronically through the mobile application or the Authority’s website, without having to visit tax offices in person.

5. Why should taxpayers file a tax return, and what is the deadline for filing the current return?

Filing a tax return helps update property data, obtain the National Property Identification Number, and accurately determine the property’s tax status. Compliance with the tax return filing requirement is also linked to eligibility for tax incentives and facilitations.

The current five-year tax return may be filed until the end of September 2026.

6. What incentives and facilitations are available for filing the tax return?

Taxpayers who file a correct tax return within the prescribed deadline are entitled to a recurring annual discount of 25% for residential units and 10% for non-residential units.

The discount may be increased by an additional 5% if an advance payment is made on account of the tax, bringing the total discount to 30% for residential units and 15% for non-residential units. The advance payment will be deducted from the tax due for 2027 and may be refunded if the property is granted a full exemption.

Furthermore, taxpayers who have not previously dealt with the Authority will not be held liable for prior periods, provided that they file their tax returns within the prescribed deadlines.

7. How is the real estate tax assessed and calculated?

The annual rental value of residential and non-residential units is assessed, with maintenance expenses deducted at 30% for residential units and 32% for non-residential units, in addition to the applicable statutory exemption threshold.

The tax is calculated as follows:

Capital value = 60% × market value.

Rental value = 3% × capital value.

Maintenance expenses of 30% for residential units and 32% for non-residential units are deducted from the rental value to determine the net rental value.

The exemption threshold—EGP 100,000 for a principal private residence and EGP 1,200 for non-residential units—is then deducted to determine the taxable amount.

Annual tax = 10% × taxable amount.

The tax return incentive of 25% for residential units and 10% for non-residential units is then deducted, in addition to a further 5% in the case of an advance payment on account of the tax.

8. What safeguards are in place to ensure a fair tax assessment?

The Authority is required to publish a pricing map specifying the applicable price for each geographical area. This ensures that comparable properties within the same area are assessed on a consistent basis, taking into account differences in area.

If a taxpayer disagrees with the assessment, they have the right to appeal within 60 days from the date of notification of the rental value, tax due, and property assessment results.

9. When is the real estate tax payable, and can it be paid in installments?

The tax is payable annually and becomes due on January 1 of each year. For greater convenience, taxpayers may pay it in two equal installments. The first installment is payable from January through the end of June, while the second installment is payable from July through the end of December each year.

The tax may also be paid monthly within the amount of the installment due. Payment procedures are conducted electronically, ensuring that transactions are documented and can be accessed at any time.

10. What is the status of previous tax disputes, and what options are available for resolving them?

There are two avenues for resolving tax disputes:

First, tax settlement: Disputes pending before appeal committees or courts of any level may be settled upon payment of 70% of the total disputed tax, with a 100% waiver of late-payment charges. Applications must be submitted by October 2, 2026.

Second, dispute resolution: Taxpayers may apply for the resolution of disputes pending before appeal committees or courts of any level if they have grounds for believing that they are entitled to a reduction exceeding 30%. Applications must be submitted by December 31, 2026.

For further information, please contact the Real Estate Tax Authority hotline at 17848.