A study by Marsad Omran (The Built Environment Observatory), published Tuesday, found that the new property-tax exemption threshold of 8 million Egyptian pounds ($161,000) is above average home prices in most Cairo neighborhoods, roughly in line with averages in affluent areas like Dokki, Sheikh Zayed and Tagammu, and below average only in Zamalek.
The observatory said its findings, based on average asking prices listed on real-estate search engines, show the latest legal changes mean “the vast majority of residents are exempt from the tax, and the burden falls only on the very richest.”
Parliament approved earlier this week a government-backed bill amending provisions of the 2008 property tax law, after a wave of parliamentary criticisms of the government’s original proposal, which set the exemption threshold at 4 million pounds.
In the study, Marsad Omran said the government’s initial proposal would have concentrated exemptions in middle- and working-class neighborhoods, before the threshold was raised to its current level.
The observatory noted the exemption applies only to a single housing unit that a family uses as its primary residence, meaning “about a third of properties in Egypt will remain subject to the tax,” by its estimate.
Separate from the dispute over the exemption threshold, the observatory warned that property-tax collection is weak, saying revenue over the past 13 years did not exceed 77% of the targets set by the Finance Ministry.
In fiscal year 2024-2025, the ministry aimed to collect 7.9 billion pounds ($160 million) in property tax but collected 6.3 billion pounds ($127 million). It is looking to raise proceeds to 18 billion pounds ($360 million) in the current fiscal year, the observatory report said.
Marsad Omran said the latest amendments included incentives to improve compliance, including a 25% discount for on-time payment, but questioned whether incentives alone can deliver the revenue levels the government expects.
Under Egypt’s property tax law, the tax is not based on the home’s sale price. Committees first assess an annual rental value for the unit, updated on a five-year cycle, then deduct a 30% flat allowance for expenses and maintenance for residential units. The remainder is the net annual rental value, and the tax due is 10% of that net figure.
