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Egypt

Vacation Rental Laws in Egypt

Vacation Rental Laws in Egypt

Egypt

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Introduction

Introduction to Vacation Rental in Egypt

Welcome to Egypt, a country with captivating blend of history, culture, and natural beauty, which has always been a magnet for travelers. Today, this appeal has expanded with the rapid growth of short-term rentals, allowing visitors to experience the country like locals in neighborhoods from bustling Cairo to serene coastal spots like Hurghada and Sharm El-Sheikh. In 2024, short-term rentals have not only enriched Egypt’s tourism landscape but also contributed significantly to the national economy. Major tourist hubs, including Alexandria, Luxor, and the Sinai Peninsula, have seen a notable shift in lodging trends, with travelers increasingly choosing short-term rentals over traditional hotels. Platforms such as Airbnb, Booking.com, and Vrbo have become popular go-to sources for visitors, providing options that range from cozy city apartments to luxury villas by the sea. This shift reflects a desire for more personal and flexible accommodation choices, as well as a push towards sustainable tourism that benefits local communities. This blog post will explore Egypt's short-term rental boom, examining its economic impact, key destinations driving the trend, and the platforms that have made booking these unique accommodations easier than ever.

Overview

Welcome to Egypt, a country with captivating blend of history, culture, and natural beauty, which has always been a magnet for travelers. Today, this appeal has expanded with the rapid growth of short-term rentals, allowing visitors to experience the country like locals in neighborhoods from bustling Cairo to serene coastal spots like Hurghada and Sharm El-Sheikh. In 2024, short-term rentals have not only enriched Egypt’s tourism landscape but also contributed significantly to the national economy. Major tourist hubs, including Alexandria, Luxor, and the Sinai Peninsula, have seen a notable shift in lodging trends, with travelers increasingly choosing short-term rentals over traditional hotels. Platforms such as Airbnb, Booking.com, and Vrbo have become popular go-to sources for visitors, providing options that range from cozy city apartments to luxury villas by the sea. This shift reflects a desire for more personal and flexible accommodation choices, as well as a push towards sustainable tourism that benefits local communities. This blog post will explore Egypt's short-term rental boom, examining its economic impact, key destinations driving the trend, and the platforms that have made booking these unique accommodations easier than ever.

Property

Overview

In Egypt, there isn't a dedicated national association exclusively for short-term rental (STR) owners and operators. However, the Egyptian Hotel Association (EHA) serves as a representative body for various accommodation providers, including those involved in short-term rentals. Services and Support Provided by EHA: • Advocacy: EHA represents the interests of its members in discussions with governmental bodies, ensuring that the concerns of accommodation providers are addressed in policy-making. • Training and Development: The association offers training programs and workshops aimed at enhancing service quality and operational standards within the hospitality sector. • Networking Opportunities: Members have access to events and forums that facilitate networking, knowledge sharing, and collaboration among industry professionals. • Market Insights: EHA provides its members with research and data on market trends, helping them make informed business decisions. Membership Requirements for Non-Resident Owners: Non-resident property owners interested in joining EHA are typically required to: • Legal Ownership: Demonstrate legal ownership or management rights of a property used for accommodation purposes in Egypt. • Compliance with Regulations: Ensure that their property complies with local laws and regulations governing short-term rentals and hospitality services. • Application Process: Submit a membership application, which may include providing documentation related to property ownership, business operations, and adherence to industry standards.

Property

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short term rentals

What is Vacation Rental in Egypt?

What are short Term Rentals in the Country?

In Egypt, short-term rentals don’t have a widely recognized local term equivalent to those in Western markets, such as "Airbnb" or "vacation rental." However, they are often referred to locally as "furnished apartments" ("شقق مفروشة" in Arabic, pronounced she’aq mafrusha). Short-term rentals in Egypt refer to furnished apartments, villas, or homes rented out for short periods, ranging from a few days to a month depending on location as city like Cairo only allow maximum of 30 days, and are popular among tourists and temporary residents.

Is Subletting Legal?

Is Subletting Legal in Egypt?

Yes

National Association for STR Owners

What is the maximum length of stay in Egypt?

What is the maximum length of stay?

In Egypt, there is no nationwide maximum length of stay for short-term rentals. Regulations vary by city, and specific limits are determined by local ordinances ranging from few day to a month but the Cairo City Council has set a maximum stay of 30 days for short-term rentals, allowing property owners to rent out residential spaces for up to one month. This rule was established to regulate the growing short-term rental market while supporting local tourism. In other cities across Egypt, maximum stay policies may differ or may not be explicitly defined, as short-term rental regulation enforcement varies widely. Property owners should verify with local authorities in other regions to ensure compliance with any specific rental duration limitations.

Is there any National Registration Requirement or Permit?

In Egypt, there isn't a centralized national system mandating the registration or licensing of short-term rental properties. This determined at the local level. For instance in Cairo the following requirement and documents enhances the process of obtaining a permit for short-term rentals: 1. Permit Fee: Hosts must pay a fee of $75 to legally operate a short-term rental. 2. Documentation Requirements: Hosts must provide the following documents; ◦ Proof of property ownership or lease agreement with permission to sublet. ◦ Identification documents. ◦ Tax registration or relevant proof of compliance with local tax regulations.

Is there a need for Permission from Landlord/Local Council/Neighbors?

Is Short-term rental Income taxable?

Is there any National Tourism Fund or Tourist Tax?

Is there any Guest Registration and Reporting Requirement?

Is there any National Health and Safety Requirements?

Is there any Platform Accountability Requirement?

Is there any Anti-Discrimination Law?

Is there any Data Sharing Requirements?

Is there any National Insurance Requirement?

Is there any National Zoning law/Cultural Heritage law?

Is there any Environmental Regulations that affects STR?

Is there any National Tenant Protection Law?

Is there any Reporting Requirements for Foreigners?

Is there any Digital Platform Regulation Compliance?

Is there any Consumer Protection Law that affect STR?

Is there any Law that applies to Non-resident Owners?

Is there any classification of STR in the country?

Are there Special National Event Regulations?

Is there any Penalty for Violating National Rules?

Are there National Rules or Regulations Governing Short-Term Rentals in Egypt?

Are there National Rules or Regulations Governing Short-Term Rentals in the Country?

1- In Egypt, nationwide health and safety standards for short-term rental properties require hosts to follow several key regulations: 1. Egyptian Unified Labor Law (Law 12/2003): This law sets occupational health and safety standards, applicable to all establishments, including rental properties. 2. Ministerial Decrees under Law 12/2003: ◦ Decree 126/2003: Specifies procedures for reporting work-related accidents and injuries. ◦ Decree 134/2003: Defines general occupational health and safety requirements. ◦ Decree 211/2003: Aims to prevent hazards and mitigate risks. 3. Safety Measures Implementation: ◦ Fire Safety: Installation of fire extinguishers, smoke detectors, and accessible evacuation routes. ◦ Structural Integrity: Regular maintenance to ensure the property remains structurally sound. ◦ Sanitation: Maintaining cleanliness and waste disposal to uphold hygiene.

2- Egypt does not have specific sustainability requirements aimed exclusively at short-term rentals. However, several broad regulations affect businesses across sectors, including those involved in short-term rentals, to ensure environmental responsibility and sustainability. Key nationwide requirements include: 1. Environmental Protection Law No. 4 of 1994: This foundational law mandates that businesses conduct Environmental Impact Assessments (EIA) for projects that may impact the environment. It includes guidelines for air quality, waste management, and emissions control. 2. Law No. 9 of 2009: This complements the Environmental Protection Law and specifically focuses on hazardous waste management, with requirements for safe disposal practices. Violations of these regulations can result in penalties, highlighting the emphasis on corporate environmental compliance. 3. 2030 Sustainable Development Strategy (SDS): This strategy promotes the adoption of sustainable business practices, including the efficient use of resources like water and energy, and waste reduction. While it does not legally bind short-term rental businesses, it encourages all businesses to adopt sustainable practices as part of Egypt’s commitment to environmental protection and economic development.

3- In Egypt, culturally and historically significant areas are protected from impacts such as short-term rentals through several key regulations: 1. Law No. 117 of 1983 (Protection of Monuments): This law safeguards artifacts and monuments with historical and archaeological importance, including sites and buildings produced by different cultures. It prohibits unauthorized alterations that could affect monuments and archaeological sites. 2. Law No. 144 of 2006 (Architectural Heritage Conservation): This law protects buildings with distinctive architectural and historical significance, including those connected to national history or a historical era. These buildings are shielded from demolition or alteration, ensuring they retain their cultural value. 3. Law No. 119 of 2008 (Urban Harmony): This law preserves areas with valuable architectural, aesthetic, or natural elements. It focuses on protecting the surroundings of monuments, defining buffer zones and boundaries to maintain the area's cultural and historical context as an integrated unit. These laws collectively provide a framework for conserving Egypt’s cultural heritage, with specific protections for monuments and historical sites against changes that could arise from commercial uses like short-term rentals.

Is there any National Tax that affects short-term rental?

1- In Egypt, income from short-term rentals is subject to the following taxes: 1. Real Estate Tax: - This is an annual tax on any building that earns rental income. - Who Pays: Property owners. - Rate: 10% of the net rental income after subtracting maintenance expenses. - Exemptions: Small residential units, religious sites, and some properties for public use don’t have to pay this tax. 2. Real Estate Wealth Tax: - This tax applies to income earned from renting out property, including short-term rentals. - Who Pays: Anyone earning rental income from their property. - Rate: Ranges from 10% to 27.5% based on the profit after deducting 50% for expenses. In Egypt, businesses are required to register for Value Added Tax (VAT) if their annual taxable sales exceed EGP 500,000. This threshold applies to both goods and services. However, certain activities, such as consultancy services, mandate VAT registration regardless of turnover. Andersen Non-resident service providers offering digital services to Egyptian consumers must also register if their annual revenue from these services surpasses EGP 500,000.

2- As of March 1, 2023, Egypt imposed new fees on hotels, tourist facilities, restaurants, and bazaars to support the Tourism and Antiquities Support Fund. This includes a 1% fee on hotels per night and safari yachts, with amounts ranging between EGP 5 and EGP 50. Bazaars are required to pay annual fees between EGP 5,000 and EGP 10,000, depending on their size. Restaurants and cafes face annual fees ranging from EGP 4,000 to EGP 5,000, with additional charges if they offer shows, alcoholic drinks, or hookahs. Nightclubs are subject to an annual fee of EGP 20,000

permits, license

Are there any Permits, Licenses, or Registrations for Vacation Rental in Egypt?

Are there any Permits, Licenses, or Registrations for Short-term Rentals in the Country?

In Egypt, there isn't a centralized national system mandating the registration or licensing of short-term rental properties. This determined at the local level. For instance in Cairo the following requirement and documents enhances the process of obtaining a permit for short-term rentals: 1. Permit Fee: Hosts must pay a fee of $75 to legally operate a short-term rental. 2. Documentation Requirements: Hosts must provide the following documents; ◦ Proof of property ownership or lease agreement with permission to sublet. ◦ Identification documents. ◦ Tax registration or relevant proof of compliance with local tax regulations.

Is there any National Association for Vacation Rental owners in Egypt?

Is there any National Association for STR owners in the Country?

In Egypt, there isn't a dedicated national association exclusively for short-term rental (STR) owners and operators. However, the Egyptian Hotel Association (EHA) serves as a representative body for various accommodation providers, including those involved in short-term rentals. Services and Support Provided by EHA: • Advocacy: EHA represents the interests of its members in discussions with governmental bodies, ensuring that the concerns of accommodation providers are addressed in policy-making. • Training and Development: The association offers training programs and workshops aimed at enhancing service quality and operational standards within the hospitality sector. • Networking Opportunities: Members have access to events and forums that facilitate networking, knowledge sharing, and collaboration among industry professionals. • Market Insights: EHA provides its members with research and data on market trends, helping them make informed business decisions. Membership Requirements for Non-Resident Owners: Non-resident property owners interested in joining EHA are typically required to: • Legal Ownership: Demonstrate legal ownership or management rights of a property used for accommodation purposes in Egypt. • Compliance with Regulations: Ensure that their property complies with local laws and regulations governing short-term rentals and hospitality services. • Application Process: Submit a membership application, which may include providing documentation related to property ownership, business operations, and adherence to industry standards.

National Association for STR Owners

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Disclaimer

Lodge compliance is not a licensed tax or financial advisor. Therefore nothing in the above article should be construed as tax, legal, or financial advice. Contact your local tax office for information regarding your personal circumstance.

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