Egypt's cabinet has decided to submit a draft law to the House of Representatives to amend Law No. 186/2020 that had amended some provisions of Law No. 114/1946 regulating real estate registration, a cabinet statement said on Sunday following a ministerial meeting. Such proposed amendments, the statement added, will give authority to the cabinet to delay the enforcement of the Real Estate Registration Law — which was initially set for 6 March — till the end of December 2021. According to the amendments of the controversial Real Estate Registration Law (No. 186/2020) that were approved last August, new fees were supposed to be required to register properties at the Real Estate Registration and Notarisation Authority starting 6 March. Such registration fees range from EGP 500 for properties up to 100 square metres to EGP 2,000, which is the maximum fee for properties exceeding 300 square metres. These fees, according to the passed amendments in 2020, are due to be paid when property owners want a government agency to install facilities such as water, gas, or electricity metres, and if they wish to transfer ownership of the property. This comes in addition to paying 2.5 percent of the property's value under the name of the “Real Estate Disposal Tax”, which is part of one's income tax and has been imposed since 1939 and was then reduced in 1996 from 5% to 2.5%. The law has stirred controversy on social media platforms and among the public for a few days as the scheduled date of enforcement approached. “Postponing the enforcement of this law until the end of this year will provide an opportunity to cooperate with parliament in putting forward some ideas to make things easier for citizens and motivate them to register [their properties],” Prime Minister Mostafa Madbouly said on Sunday. On top of these ideas, Madbouly says, is the separation of paying the Real Estate Disposal Tax, and the real estate registration procedures, in addition to installing facilities. Madbouly stressed that the first goal of the state “is the interest of the citizens”. “About 95 percent of our real estate in Egypt is unregistered, and the government hopes that all citizens will register their properties, with the aim of securing their properties,” the prime minister said, stressing that the government would work on its part to facilitate the procedures for real estate registration. From his part, Minister of Justice Omar Marawan stated that the registering at real estate and notarisation offices allows the state to take stock of real estate wealth, create an identity for each property, and give space to the planned expansion of construction sites. Registering also allows the securing of citizens' ownership and maximising their benefits, as well as controlling, securing, and activating the real estate market, while at the same time eliminating illegal construction and slums, Marawan added. On Wednesday, Madbouly ordered the formation of a ministerial committee to facilitate the procedures required for registering real estate. He also ordered that the procedures and the objective of registration be explained to citizens so as not to allow the spread of rumours and false information regarding this issue.
