|
Over the past few years the Egyptian regulatory environment governing property ownership, foreign currency and taxes has changed fundamentally with the aim of encouraging foreign investment.
Property Ownership:
There are no legal restrictions on foreign ownership on a freehold basis of resort housing units at Soma Bay. The purchase and sale of these units is unrestricted.
Foreign Currency Regulations:
There are no restrictions in Egypt to the entry and/or re-export of capital. Rental income generated from the ownership of resort housing units is also not subject to any currency controls or restrictions.
Fiscal Environment:
Soma BreeZe apartment owners will be subject to the following fiscal environment:
Sales Taxes: Rental revenues generated from apartment units placed under the Soma BreeZe Apartment Rental Program will be subject to a 10% sales tax. This level of sales tax applies to all hotel operations in Egypt.
Income Tax: The Net Operating Profit distributed to apartment owners resulting from the rental pool, after deduction of depreciation on the unit shall be subject to a 20% income tax which will be deducted at source.
Capital Gain/Transaction Tax: Any capital gains resulting from the sale of a Soma BreeZe apartment unit is not subject to taxation under current regulations and the proceeds of sale is freely transferable in whole to the seller.
Real Estate Tax: A new real estate tax law has been passed. When implemented, its impact on Soma BreeZe units is expected to be relatively modest, not exceeding Euros 2,000 per annum per apartment unit.
|
