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6.1 Fair Tax Regime
6.2 Professional Services
6.3 Capital Markets
In-Country Assessment Information

6.1 Fair Tax Regime

Core Question:  Do market participants feel the overall tax rate is fair and participate in formal transactions? Weak – Tax rates are relatively low.

 

Transfer Tax

6.1.1   What is the total property transfer tax including all duties and payments? Very Strong – 0.7% of property value

 

Overall Tax

6.1.2   What is the overall tax rate on entrepreneurs? 42.6% – Ranking – 145th out of 185, Very Weak – Trend ↓

Source: Doing Business 2013 – Paying Taxes & Registering Property, World Bank
http://www.doingbusiness.org/data/exploreeconomies/egypt#paying-taxes

 

Divestment

Survey Question

SQ 28  What is the tax on profits for foreign investors when divesting property?

Very Strong – 10% VAT (Value Added Tax)

Source: Doing Business 2013 – Paying Taxes & Registering Property, World Bank http://www.doingbusiness.org/data/exploreeconomies/egypt#paying-taxes

 
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6.2 Professional Services

Core Question:Are the professional services necessary for efficient and transparent property markets available and appropriately regulated and supervised?

 

Asset Valuers

Survey Questions

SQ 29  Are property valuers licensed and/or certified by the government? No, Weak.

Source: Civil Society Resource: The Appraisal Foundation – www.appraisalfoundation.org

 

Q 30   How effective are mechanisms in place to discipline valuers who engage in misconduct? Weak.

Civil Society Resource: International Real Property Foundation www.irpf.org

 

Brokers & Agents

Survey Questions

SQ 31  Are real estate brokers and agents licensed and/or certified by the government? Weak

 

SQ 32  How effective are mechanisms in place to discipline brokers or agents who engage in misconduct?  Ineffective – Weak

Civil Society Resource: International Real Property Foundation www.irpf.org


Mortgage Professionals

Survey Questions

SQ 33  Are mortgage professionals licensed and/or certified by the government? No, Very Weak.

  

SQ 34  How effective are mechanisms in place to discipline mortgage professionals who engage in misconduct? Very Weak.

Source: The mortgage market in Egypthttp://dar.aucegypt.edu/handle/10526/3112

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6.3 Capital Markets

Core Question:         Are capital markets well-regulated and diversified enough to provide financial resources to private-sector entrepreneurs and innovators? No- Very Weak.

 

Capital Flows

6.3.1  How restricted is the flow of capital into and out of the country? Very Weak – Ranking 110th out of 144; Score 4.0 out of 7

 

Security Exchanges

6.3.2   Is the regulation of securities exchanges transparent, effective and free of influence from government and industry? Yes – Strong, Ranking 69th out of 133; Score 4.1 out of 7

Source: The Global Competitiveness Report 2012-2013, World Economic Forum
http://www.weforum.org/issues/global-competitiveness

 

Securitization

6.3.3   What is the depth of asset-backed securities, mortgage-backed securities, high-yield bonds and highly leveraged loans? Very Weak – 56th out of 62, Score 1.31 out of 7, capital markets are very small with low turnover.

Source: Financial Development Report 2012, World Economic Forum – http://www.weforum.org/reports/financial-development-report-2012
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In-Country Assessment


Taxation

FQ 21.         What is the overall taxation system in regards to property? Brokerage.


Brokerage

FQ 22.            What is the number of practitioners in the country including full-time brokers/agents with formal training and part-time, informal brokers?

 

FQ 23.         What is the number and average size of brokerage companies?

Brokerage is very new in Egypt; data is not available.

 

FQ 24.            Are there brokers associations active in the market? What number and what percentage of practitioners belong?

 

FQ 25.         What training programs are available to enhance productivity?

 

FQ 26.            Is there a Code of Ethics or standards that practitioners follow? Is the Code enforced?

 

FQ 27.         Do civil society organizations exist to support the development of mortgage professionals? 

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