Maintenance of real estate in Egypt

Information about Egypt: Geography, history, population, map, flag, visa
Repairs, TAXES, utility payments

If the property was purchased without a finish, the additional expense would be repair. Its price starts from $ 100 per square. m and depends on the quality. In addition, in some apartments are not provided for connection to the water, and will additionally install storage tank. Its value depends on the quality and amounts to 400-500 E. f.. ($ 72-90) and above.

Until now, foreign nationals in Egypt were exempt from paying property taxes. However, since 1 January 2010 such a tax is introduced. This does not apply only to objects up to 500 thousand EF ($ 91.3 thousand). Fixed tax rate is not provided, and its size will depend on the expected income that the owner may receive from the rental facility in the lease. For property worth 500 thousand EF tax will be about 30 EF ($ 5,5), and the cost of 1 million EF ($ 182 thousand) - 660 EF ($ 120.5) per year. If a construction project is completed, its owner, regardless of the cost of housing must submit a declaration prior to December 31, 2009. Otherwise, a fine of up to 2 thousand EF ($ 365).

Also, housing maintenance includes services management company and the utilities (water and electricity). Management company takes the content of local area, pool cleaning, security, etc. The cost of its services typically range from $ 7 to $ 30 per sqm year. The specific amount of payments depends on the prestige of the complex, the development of its infrastructure and on the list of services, which provides the company.

Electricity and water are paid by the testimony of the counters. For example, the cost of utilities (water and electricity) for the two-room apartment of about $ 20 per month in winter and about $ 40 in summer (with the active use of air conditioners). Thus the cost of electricity varies by city: in Hurghada - 0,3 e. f.. ($ 0.05) per kW ? h-in Sahl Hasheesh - 1,6 e. f.. ($ 029) per kW ? h The cost of water is the following: supplied State - 4 e. f.. ($ 0.7) per ton, imported - 25 f. f. ($ 4.5) per ton. It depends on the particular area.

COST OF LIVING

In addition to the cost of maintaining housing landlord must take into account other costs. In particular, food, transportation, mobile communication, etc.

The cost of living in Egypt is relatively low. Products cost several times cheaper than in Moscow or St. Petersburg. For example: juice - 5-8 ie fax. ($ 1-1,5) for 1 liter, and water - 1,5 e. f.. ($ 0.27) per 1,5 l; apples - 5 e. f.. ($ 0.9) per kg, cheddar cheese - 30 f. f. ($ 5.4) per kg., Cucumbers and tomatoes - 3 e. f.. ($ 0.5) per kg, in the season - 1,5 e. f.. ($ 0.25) a bottle of wine - 60-75 e. f.. ($ 11-13).

Transportation. The best means of transportation around the city is by taxi. Rates of travel are fixed and very acceptable. So, landing in Hurghada and the first kilometer cost 3 e. f.. ($ 0,5), further - 0,5 e. f.. ($ 0.1) per km. You can take a rental car, rental without a driver will cost between $ 25 and above. Petrol costs only 1,75 e. f.. ($ 0.3) per liter.

Prices for mobile communications following: buying SIM cards - 20-25 e. f.. ($ 3.6), one minute local call - 0,2-0,4 e. f.. ($ 0,03-0,06), the cost of local SMS - 0,5 e. f.. ($ 0,1), call to Russia - 4-5 e. f.. ($ 0,7-0,9). Recently entered the market a new company that provides a subscriber line from Moscow or St. Petersburg room. The cost of a telephone company that makes 1,2 thousand e. f.. ($ 216) monthly fee - ie ? 300. ($ 54), incoming and outgoing calls to Moscow or St. Petersburg are free.

The average bill in restaurants and cafes is, depending on the level of institutions, the city and its district, from $ 4 to $ 25 per person.

Sign up on the beaches charge. For example, in Hurghada, the entrance to the public beach is 10 f. f. (about $ 2), the private - 25 f. f. ($ 4,5). Payment shall be valid for the whole day. For property owners provided additional loyalty cards to the private beaches for a period of one to six months, giving additional discounts to enjoy the bars and restaurants on the beach area. Login to him free only if it is located inside the housing complex, where the acquired property.

Demise

For renting the property you can contact the agents, travel agents or management companies. If the owner has the services of a management company for utilities and other costs, and to lease it easier to refer to the same. In this case, the same firm will fully serve the housing - ranging from maintaining order in the territory to find and solve all issues with tenants, and in the future - and to promote the sale of an object.

The owner and management company entered into a contract where all the requisites of the parties, the cost of the lease, liability, etc. In a number of systems management companies offer ready-made rental contracts with a guaranteed income.

Income from rental of real estate is regarded as trading income and taxed. Its rate is 20%. If the owner uses the services of a management company in the delivery of real estate, it would have to pay from 10% to 30% of the rental cost.

PROPERTIES FOR SALE

When selling real estate to foreign citizens are advised to consult a licensed agencies. So it will be protected from possible fraud and misinterpretation of the items in the transaction documents.

The sale of real estate in Egypt is best to begin by drawing up a portfolio site. The owner collects photographic material - either directly or through a specialist agency when leaving the object, the most detailed description of its characteristics. Also, the owner shall prepare a contract of sale and, if it was not the first buyer of the object, the originals of all taukiley.

If the seller is located outside of Egypt, the documents can provide in facsimile form, and photo of the object to send an e-mail agency. It should consider the possibility of access to the site of the potential buyer. If, for example, an apartment in a residential complex, the keys can be left operating company.

Tax on sale of real estate in Egypt amounts to 2,5% of the value of property being sold. However, it will have to pay only if the owner of the purchase of the property decorated green contract. Otherwise, the seller exempt from paying this tax.

FEATURES OF DOING BUSINESS IN EGYPT

Egyptian law establishes a certain age limit for those wishing to start their own business in Egypt - the founder has 21 years of age.

Foreign citizens have the right to establish legal persons in the Arab Republic of Egypt without the Egyptians of the founders. However, this does not affect all forms of business. The following types of legal entities:
• private business (Sole Proprietorship);
• Limited Liability Company (LLC);
• Limited Company (Joint Stock Company);
• Partnership.

Limited liability company - the most common form of business. The number of founders not less than two but not more than 50 people. The minimum share capital of not less than 50 thousand ie fax. (about $ 9 thousand). He moved before registering the company, after registration you can use it for business needs. If LLC is allowed 100% foreign capital. However, among the managers must be at least one foreign national. Liability limited by the size of the founders of money.

To register, LLC requires the following documents:
• information about the founder (founders) and director (s) of the company: name, date and place of birth, place of registration, a copy of the passport;
• A description of the professional experience of the founders, directors;
• a description of activities of registered companies;
• name of company to be established (permitted three options);
• Proof of ownership or lease of commercial premises;
• if the founders - legal entities, the required statutory documents of the company and the decision to create a subsidiary structure / representation,

Private enterprise can be organized by one person. Moreover, the founder must be a citizen of Egypt, except in cases where the organization is engaged in export activities. Limit the share capital is not installed. If the commercial capital of less than 20 thousand ie fax. year (about $ 3,6 thousand), the financial statements may not be. When the commercial capital equals or exceeds this amount, you must keep accounting records in the prescribed form.

Joint stock companies may be of two types: open (OAO) and closed (ZAO). In both types of AD should be at least three shareholders. The authorized capital stock for both types of joint stock companies is 250 thousand e. f.. (about $ 45 thousand), half the amount can be used for business development after the registration of the firm. Its shares open and closed can be wholly owned by foreign nationals. Creating AO is usually four to five weeks.

Partnerships are divided into general partnership and limited partnership on shares. The founders of the general partnership must be at least two people, the size of the share capital is not defined. In a limited partnership on shares should be at least three partners. The minimum share capital is 250 thousand e. f.. (about $ 45 thousand). This amount can be completely withdrawn from the account after the registration of the company. Partners, shareholders bear the full responsibility for the activities of the company, shareholders' liability is determined by the total size of their shares. Aliens may participate in limited partnerships, as a limited ( "sleeping") partner. Their share in the authorized capital of no more than 49%.

A legal entity

The authorized capital of the firm at the time of registration must be placed on the Egyptian account of the founder. The registration procedure can deal with independently, but the foreign national is advised to consult a lawyer to ensure a correct legal paperwork. Counsel must necessarily have a license for such activity. That he is preparing documents and providing them to the tax authorities of the country.

Company Registration takes about twenty days. Its value depends on the form of legal entity: LLC for it is $ 3 thousand, Joint Stock Company - $ 4tys.

The total cost of discovery, such as restaurants or small hotel will make tens of thousands of dollars, with the amount of $ 60-70 thousand to open jewelry shop or a chic beauty salon.

CONTENTS OF THE LEGAL


In 2005 the Egyptian government issued a law on which the taxation of legal persons has three levels (depending on income): 10%, 15% and 20% of the difference between revenues and expenditures of the company for the year.

Annual profit of the private entrepreneur (PE) is taxed at a special scheme:
• the first 5 thousand e. f.. ($ 900) - 0%;
• from 5 thousand to 20 thousand e. f.. ($ 900-3 600) - 10%;
• from 20 thousand to 40 thousand e. f.. ($ 3 600-7 200) - 15%;
• over 40 thousand e. f.. ($ 7 200) - 20%.

Each year, the businessman is obliged to provide the tax office's annual report on the activities of the company during the period from 1 January to 31 March next year. The documentation provides the accountant, all documents must be written in Arabic. The cost accountant is about $ 200 a month.

For assistance in preparing the material thank Anastasia Agapov (Hurghada Homes Real Estate & Development) and Andrei Demchenko (Cheda Real Estate & Investment)
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