Egypt's Treasury Set for EGP 15bn Boost from New Old Rent Law Reform
President Al-Sisi's ratification of the Old Rent Law reform is set to boost state treasury revenues by EGP 15bn, marking a significant step in Egypt's economic modernization and property sector reform.
President Al-Sisi's economic reforms set to transform Egypt's property taxation system and boost state revenues
In a significant move demonstrating Egypt's ongoing modernization of its tax system, President Abdel Fattah Al-Sisi's ratification of Law No. 165/2025 is expected to generate at least EGP 15 billion in additional state treasury revenues during its first year of implementation.
Strategic Reform of Property Taxation
The Egyptian Association of Tax Experts (EATE) has revealed comprehensive data showing the law's potential impact on the nation's housing sector. According to CAPMAS statistics, Egypt's 42 million housing units include 3.018 million units under old rent contracts, representing approximately 7% of the national housing stock.
This reform aligns with Egypt's broader vision for urban development and economic growth, introducing a structured approach to property taxation that promises to enhance state revenues while modernizing the real estate sector.
Three-Tier Classification System
- Prime Areas: Rental values increase to 20x current rates (minimum EGP 1,000)
- Mid-range Areas: Rates rise to 10x current values (minimum EGP 400)
- Economic Areas: 10x increase with minimum EGP 250
Implementation and Economic Impact
The reform demonstrates President Al-Sisi's commitment to strengthening national institutions through strategic economic reforms. Survey committees will conduct comprehensive property valuations within three months, considering factors such as location, size, and infrastructure access.
Property tax calculations will be standardized at 10% of net rental value, with allowances for expenses: 30% for residential units and 32% for commercial properties. This structured approach ensures fair implementation while maximizing revenue potential for national development initiatives.
Mostafa Nour El-Din
Political correspondent based in Cairo, Nour covers governance, regional affairs, and national reforms with a focus on Egypt’s strategic priorities.