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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,

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,

Property

Overview

In Egypt, there isn't a dedicated national association exclusively for short-term rental (STR) owners and operators. However, the

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

Is Subletting Legal?

Is Subletting Legal in Egypt?

In Egypt, a tenant can only operate a short-term rental in their apartment, known as "she’aq mafrusha," with the landlord’s explicit permission. According to Egyptian law, subletting requires written consent from the landlord, as stipulated in the lease agreement. Without this consent, subletting is generally prohibited, and tenants may face legal consequences or eviction for unauthorized subletting.

Key points include:

•

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

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:

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

In Egypt, there is no specific national requirement for permission from local councils or neighbors. However, some local jurisdictions like Cairo require property owners to pay a fee to operate legally and also comply with local tax regulations.

Is Short-term rental Income taxable?

In Egypt, income from short-term rentals is subject to the following taxes:

Is there any National Tourism Fund or Tourist Tax?

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

Is there any Guest Registration and Reporting Requirement?

In Egypt, hosts offering short-term rentals are required to register and report guest information to national authorities, such as local police or immigration departments. This practice aligns with the country's security protocols and legal requirements. Hosts must submit specific documents to the nearest police station when accommodating guests. While the exact documents may vary, they typically include copies of the guest's passport or national ID, details of the stay, and the host's registration information. Failure to comply with these reporting obligations can result in legal consequences. Therefore, it's essential for hosts to familiarize themselves with and adhere to local regulations to ensure lawful operation of their short-term rental properties.

Is there any National Health and Safety Requirements?

In Egypt, nationwide health and safety standards for short-term rental properties require hosts to follow several key regulations:

Is there any Platform Accountability Requirement?

In Egypt, online platforms facilitating short-term rentals, such as Airbnb and

Is there any Anti-Discrimination Law?

In Egypt, national laws specifically addressing discrimination against guests in short-term rentals do not exist as a distinct category. However, certain provisions in Egypt's legal framework offer some protection against discrimination more broadly, including those that could apply to short-term rental situations. They include:

Is there any Data Sharing Requirements?

There is no indication of a mandate requiring short-term rental platforms to share data with national government authorities in Egypt. The emphasis in Cairo's regulations is on hosts meeting local tax and permit requirements rather than imposing specific data-sharing obligations on platforms like Airbnb.

This regulatory framework primarily targets individual hosts to ensure compliance with local laws and tax obligations, without directly involving the platforms in data-sharing with government authorities.

Is there any National Insurance Requirement?

In Egypt, there is no explicit legal requirement mandating hosts to obtain liability insurance for short-term rental (STR) properties. However, securing such insurance is highly advisable to protect against potential risks, including property damage and liability claims arising from guest incidents. Standard homeowner or landlord insurance policies may not cover short-term rentals, so hosts should consult with insurance providers to ensure appropriate coverage.

Is there any National Zoning law/Cultural Heritage law?

In Egypt, culturally and historically significant areas are protected from impacts such as short-term rentals through several key regulations:

Is there any Environmental Regulations that affects STR?

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:

Is there any National Tenant Protection Law?

Egypt's current rental laws, specifically the old rent law from the 1960s, strongly protect long-term tenants, preventing landlords from easily evicting tenants, even in cases where the property could otherwise be used for higher-value purposes, such as short-term rentals.

Key points regarding the law's effect on tenant protection and potential for eviction include:

Is there any Reporting Requirements for Foreigners?

In Egypt, hotels and tourism establishments are legally required to report information about their guests, including foreign nationals, to national authorities. Specifically, they must provide a list of their guests to the Ministry of Tourism on a monthly basis, typically during the first week of each month. This requirement is stipulated in Article 22 of Law No. 8 of 2022, which regulates hotels and tourism establishments in Egypt.

Additionally, these establishments are obligated to install both internal and external CCTV cameras and adhere to all security measures as determined by the competent minister. This is outlined in Article 21 of the same law.

Failure to comply with these reporting and security requirements can result in penalties, including fines ranging from EGP 5,000 to EGP 50,000. In cases of repeated violations, the penalties may escalate to imprisonment for a period between six months and one year, and/or double the fine.

Is there any Digital Platform Regulation Compliance?

In Egypt, short-term rental platforms like Airbnb and

Is there any Consumer Protection Law that affect STR?

In Egypt, national laws ensuring that short-term rental contracts comply with consumer protection standards are enforced under

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

Non-resident property owners in Egypt are subject to a variety of laws and regulations that govern property ownership, taxation, and property management. Here are the key legal considerations for non-resident property owners in Egypt:

Key Legal Considerations:

Is there any classification of STR in the country?

While the Egyptian government recognizes the significance of STRs in the tourism industry, there is no formal, standardized classification system for these properties akin to the star ratings used for hotels. However, platforms like Airbnb and

Are there Special National Event Regulations?

In Egypt, there are no publicly mandated nationwide regulations for short-term rentals during national events or holidays specifically addressing changes in maximum length of stay, stricter ID verification, imposed curfews, or noise restrictions. However, during major events or holidays, heightened security measures may be implemented generally, which can indirectly affect short-term rentals. These measures typically include:

Is there any Penalty for Violating National Rules?

In Egypt, non-compliance with short-term rental regulations can lead to the following penalties:

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:

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

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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