The ministries of tourism and finance have signed an agreement on the standards of real estate tax valuation of hotels, Invest-Gate reports.

Coming in line with the 2008 real estate tax law, which stipulates setting the tax valuation of different types of properties such as the industrial and tourism, the agreement was inked in the presence of Prime Minister and Minister of Housing, Utilities, and Urban Development Mostafa Madbouly.

Tourism Minister Rania Al-Mashat has stated that the agreement aims to study the optimal way of valuating tourism facilities, especially that they have different conditions such as fluctuating revenues depending on seasonal operating ratios, and also have special structural requirements to consider.

Taxes for any hotel will be calculated based on its total investment cost as determined by the property’s star rating.

The standard investment cost of a single one-star hotel room will be EGP 50,000, Al Mashat has confirmed.