EGYPT PROPERTY TAX LAW WILL NOT BE GOING AHEAD IN JANUARY

Egypt’s plan to introduce a new property tax law has been dropped, according to Egyptian newspaper Al-Ahram.

The law was supposed to come into force in this month and the fact the idea has been abandoned for at least another year has put a smile on investors’ faces.

Whilst the property tax law could be introduced in the future, investors are happy with the decision and the news will encourage other property investors to buy a property in Egypt.

Another move to put investors’ minds at rest is that formerly state land sold below its original market value will not be confiscated, although the fee will rise to reflect the correct market value of the land.

The news was revealed at a cabinet meeting in the country where the Egyptian Prime Minister Kamal El-Ganzouri approved LE20-22 billion in savings for the financial year 2011/2012.

The news has shown Egypt is a safe place for investment and property prices are considered to be very well-priced this year.

Once the elections are over and disputes in Cairo settle, property prices in Egypt are expected to rise again. Property experts have highlighted that if an individual is thinking of buying a property in Egypt, now is the best time to buy.

Neil Hollingsworth, Senior Manager at Rivermead Global says “December was our busiest of the year with sales in Turkey and six property sales in Egypt plus 3 furniture packs bought, when historically December is the quietest month Egypt bucked the trend.  We have started the year positively as well with our first sale in Egypt on New Years Day, showing investors have noticed Egypt is getting back to normal and with the rest of the world especially the Euro Zone in turmoil now is a good to time to be investing.

Once the new government is in place which we all hope to be around June 2012, I think we will see Egypt on the radar of many of the bigger investors who can look ahead and realise a good investment”

Source: Ahram Online