Homeowners Move to Settle their Property Tax

Momentum has been picking up within El Gouna Homeowners community to settle their Property Tax dues with the Egyptian Tax Authority. The subject has laid dormant and unattended for many years, due to many owners being non-Arabic speakers and unaware of recent developments published in the Egyptian press. Also, most homeowners are only part time residents of El Gouna and many rely solely on Orascom Gouna Management for official business and communications and wouldn't know how to deal with the government. This unique situation therefore, is special to El Gouna.

However, thanks to the reformed Gouna Owners Club (GOC), a series of email and Facebook communications between members has highlighted the need to take action and settle dues with the Tax Authorities in Hurghada. A group of GOC members even visited the Tax office in Hurghada (address below)

Office hours are 9am to 1pm Sunday to Thursday.

if you see this shop then you have arrived.
Tax office is in narrow alleyway to its right hand side   

As a public service, Gouna News is publishing the rules it has obtained governing this process. This in no way should be construed as legal advice:

• Enquiries and payments must be made at address above 

• The authorities have requested to receive the following information when paying, (as per Orascom Customer Service Dept email to homeowners on the 23rd of August, 2017): Owner’s Full Name, Unit Number, copy of Social ID (Egyptians), copy of Passport (Foreigners), Primary Address, Address in El Gouna,  (Unit Number, Unit Area), Copy of Proof of Property Ownership, Mobile Number. 

• All payments must be made in cash. 

• If you paid any property tax within the past 4½ years, take your receipt as proof to adjust your bill. 

• If you bought your property from another owner within the past 4½ years, you will have to pay the total sum if there are any outstanding dues, unless you have a receipt from the previous owner.

• The law regarding Property Tax is effective 1st of July, 2013 but does not cancel any amounts due per previous property tax law. 

It is to be noted that Orascom has nothing to do with the tax calculations or exemptions as these are determined by the tax department. The tax was evaluated by a committee from the tax department which began its work in the late nineties. Another committee came to El Gouna after the new law to evaluate the buildings for their rental value, which is the basis upon which rests the updated property tax law. The areas which have been tax assessed to date are as follows:

1.       Golf Villas

2.       Upper Nubia Villas

3.       Nubia Villas

4.       Hill Villas and Apartments

5.       North Golf Villas

6.       West Golf Villas (to villa 40)

7.       White Villas (Phases 1, 2, 3, 4 and 5)

8.       El Bustan Villas

9.       West Golf Blocks 1, 9, 11, 12, 39

10.   Golf Blocks G0, G2, G4, G6, G8, G10, G12

There is, however, conflicting information about West Golf and Rihanna, parts of North Golf and all of Joubal as to the degree of assessment performed. Tax authorities may require those owners to contact them in early 2018.  

The new property tax is around 3,400 EGP per annum for villas regardless of actual size and between 850 and 1300 EGP per annum for apartments depending on size/location. The new property tax applies from the effective date of 1/7/13. Hence for the 4.5 years ending 31/12/17, the total due on villas is approx. 15,300 EGP and for apartments much less. So as a guideline, for all four and half years, one bedroom apartments would be about 3,000 EGP, 2 bedroom apartments between 4,000 – 6,000 EGP, villas between 10,000 – 16,000 EGP.  The tax varies depending on the location of the property and the size. Going forward, homeowners are expected to pay yearly. Exemptions or deductions may apply to Egyptian owners if the property is their primary residence. 

This information is best obtained and or clarified by visiting the property tax office in Hurghada or asking your lawyer to do it on your behalf. It is advisable to phone ahead and engage with Mr Bakheet tel : 0111 252 9740 or Mr. Mamdouh 01278511310 who both work at the Hurghada Tax Department and can look up your tax bill online and relay it to you before you go. Please note the above mentioned employees speak Arabic only. 

Orascom is willing to help property owners who live abroad by providing a service, at no charge, to clear your tax due, on your behalf, and supplying you a tax receipt by email. This would entail transferring the money to Orascom on an account number at Commercial International Bank (CIB).  Please contact Orascom lawyers Mr Ahmed Marzuk or Mr Abdel Fatah at their office Downtown Gouna or Mr. Sameh on sameh.noshy@elgouna.com to avail this service. Moreover, some Real Estate companies provide this service.  

GOC members may contact the GOC group's lawyer to help with the tax inquiry.

It is important to note that paying of property tax is a prerequisite to registering the property with the government, if need be. 

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