Raising the exemption threshold for housing under Egypt’s property tax law is an important step to ease the burden on citizens, economic legislation expert Walid Gaballah said Tuesday.
Gaballah noted that property values are reassessed every five years by specialized committees, which determine which homes fall under the tax. He said the higher exemption for private housing is part of efforts to relieve households amid rising economic pressures.
He argued that private residences should be exempt regardless of value, calling it direct support for citizens. He added the move would not significantly affect the real estate market, which is shaped by multiple factors and ongoing efforts to stimulate activity and provide incentives for developers.
Finance Minister Ahmed Kojok said in a statement Tuesday that the first package of property tax measures aims to simplify procedures and shift to digital services. He said real estate transactions will remain taxed at 2.5% of the unit’s sale value, regardless of how many times it is sold, and that further customs facilitation measures will soon be announced to speed clearance and boost competitiveness.
Kojok added that the government is pursuing tax reforms with the conviction that the greatest return will come from private sector growth. He said a second package will include incentives to encourage listings and trading of major companies on the Egyptian Exchange, as well as a cut in value‑added tax on medical equipment from 14% to 5%. Institutional reforms are also planned to make VAT refunds faster and more efficient.