Experts Forecast EGP 15 Billion Revenue Surge Following New Rent Law

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.