Holiday rentals news - New tax for owners of Egypt apartments and villas

New tax for owners of Egypt apartments and villas

A new real estate law will soon be introduced in Egypt. From January 2010, owners of homes in Egypt will be required to pay a new tax.

Owners of Egypt apartments and villas will have to pay an annual tax based on 10 per cent of the rental value of their property. The tax will be payable by owners of commercial and residential real estate worth E£500,000 and over.

The new tax is unlikely to deter those investing in holiday homes in Egypt, Jeremy Sturgess of developer IFB Resorts told Overseas Property Professional (OFP). "The new tax levels are set so law as to be immaterial to overseas buyers," he said. "I don't think it will have any effect on the market at all."

Sturgess added that Egypt remains "incredibly tax friendly". There is no capital gains tax, no inheritance tax and minimal stamp duty, making it an appealing destination for foreign investors.

This story was brought to you by holidaylettings.co.uk, the UK's No.1 for holiday homes worldwide.

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