Who is exempt from real estate tax when registering with the real estate registry?

The law clarifies the fiscal status of residential units in villages.

The head of the Real Estate Registration Authority, Dr. Gamal Yaqout, revealed many details of the real estate tax and what are the excluded categories.

He said in an interview with the program “Happening in Egypt”, hosted by journalist Sherif Amer, on MBC Egypt, that article 42 reveals these categories, since it excludes from the actions subject to this tax the behavior of the heir in reality. the assets that were transferred to him from his heir in his inheritance condition, as well as presenting the property as a participation in kind in the capital stock of public limited companies, provided that the corresponding shares are not disposed of for a period of five years.

The statement from the Ministry of Finance indicated that all the properties and housing units of the towns and what is deduced from the inflorescences, hamlets and estates are exempt from the real estate alienation tax, as well as the conduct of the heir until July 25 of 2018, in the real estate that has been assigned to him by his heir in his inheritance condition, in addition to the assets presented as participation in kind in the headline The money of the public limited companies provided that the corresponding shares are not sold for a period of five years, indicating that the real estate alienation with donation of goods is exempt from the real estate alienation tax and that the determination of the right of usufruct or lease of the property for a period exceeding fifty years is subject to this tax.

The property tax is a tax levied on whoever disposes of the thing, and whoever disposes of the thing can be the seller, the donor or the donor. This tax is not a recent or new tax in Egyptian law. However, recently, the state has made some adjustments to that tax and imposed penalties on those who do not pay it.

Perhaps another aspect, Yaqout said during a telephone interview on the program “Good morning Egypt”, broadcast by the satellite channel “Al-Oula”: “The initial contract between two parties becomes a final contract binding on all parties, including the state, after the signing of the contract between the two parties in the real estate month, while the contract is binding on both parties only if it was signed between them only.

He pointed out that “if the citizen goes to the real estate month with the primary sale contract with the seller or only with a power of attorney in his name, the contract can be announced without going to court, that is, the process to document the contract requires the presence of the seller or his power of attorney “, which indicates that, in the absence of the seller or a power of attorney, the court will apply article 35 bis, which provides for the issuance of a judgment on validity. and execution of the contract in favor of the buyer, but after attending the real estate month to support the request that will be presented to the court.

Regarding advertising in newspapers, he said, “this clause was added by article 35 bis added by Law 186 of 2020, although there are objections to the sale process, the recognition is made within a month from the date of publication in a journal. , ”Indicating that this step is considered a guarantee of the status of legislator. Ensure the validity of the sale in case of objection, and if there is no objection, the temporary number will become final after one month has elapsed and is recorded.