Egypt’s Ministry of Tourism and Antiquities (“MoTA”) has enacted Decree No. 209 of 2025 (published in the Official Gazette, Issue No. 105, 12 May 2025), and Decree No. 801 of 2025 (published in the Official Gazette, Issue No. 259, 18 November 2025), introducing the country’s first comprehensive legal framework governing the short-term rental of residential units (“Holiday Homes”).
Together with implementing circulars issued by the Central Department for Hotel and Tourist Establishments, these Decrees create a national licensing and compliance regime that captures individuals and corporate entities engaging in rental of furnished units for tourism purposes. What changed?
Key Takeaways:
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- Licensing Mandate: Under Decree No. 209 of 2025, no individual or corporate entity may offer any residential unit for short-term or transient occupancy without a Holiday Home License issued by MoTA, which must be renewed annually.
- Corporate Regulation: Decree No. 801 of 2025 sets licensing rules for another type of Holiday Homes, requiring a minimum of eight (8) residential units (apartments or studios) within a standalone building or a dedicated section thereof, which must be exclusively used for Holiday Homes and meet hotel-grade structural standards, as well as other logistic requirements by MoTA.
- Quality and Standards: Decree No. 209 of 2025 establishes classification and operational standards for Holiday Homes, including minimum unit requirements, essential services, location criteria, and compliance with safety and administrative regulations.
- Statutory Links: The system integrates with the Tourism Law No. 1 of 1973 (as amended) and the Hotel and Tourist Establishments Law No. 8 of 2022, bringing private short-term rentals formally under the tourism regulatory scope.
- Data and Security Compliance: Licensees must comply with all operational and administrative requirements under Decree No. 209 of 2025 and Decree No. 801 of 2025, including submission of required documentation, payment of prescribed fees, and adherence to occupational safety and health standards issued by the Ministry of Labor.
Regulatory Context and PurposePrior to 2025, short-term rentals operated in a grey area as they were not regulated. Decree No. 209 of 2025 and Decree No. 801 of 2025 reflect the intent to formalize this sector by providing a unified nationwide regulatory framework for the licensing, operation, and supervision of Holiday Homes.
The 2025 Decrees provide a unified national framework, aimed at integrating unregistered tourism activity into the formal tourism economy, enhancing safety and quality standards consistent with Egypt’s hospitality sector, ensuring data review and transparency across the tourism ecosystem, and generating new, traceable streams of tourism tax and municipal receipts.
Licensing FrameworkEach residential unit offered for short-term occupancy must hold a valid Holiday Home license. Corporate operators managing multiple units may obtain a single, consolidated license for their entire portfolio, provided they maintain a registered operational base and a designated manager formally recognized by MoTA.
The decrees further empower Governorates to designate specific zones or districts (eligible tourism areas) for Holiday Homes operations, aligning short-term rental activity with urban planning and residential zoning regulations.
Applicants must submit supporting documents, including proof of ownership or a valid lease agreement, Civil Defence (Fire Safety) approvals, finalizing Occupational Health and Safety inspections (issued in coordination with the Ministry of Labour), and proof of tax registration. Corporate applicants must also provide a valid Commercial Register (reflecting a purpose related to hospitality management) and the criminal record of the designated manager.
Tax and Compliance Interface
The licensing process requires formal tax registration and coordination with the Egyptian Tax Authority to ensure that rental income is properly declared and subject to applicable taxes. This framework is particularly relevant for developers with mixed-use projects (residential/tourism) seeking to operate units under short-term management schemes. MoTA is expected to issue guidelines clarifying filing and compliance procedures for corporate operators and individual lessors.
Operational and Compliance Obligations
Holiday home operators must maintain accurate guest records for registration and ensure strict compliance with building safety, occupational health, and safety requirements as issued by the Ministry of Labour. Units must meet the mandatory structural specifications, facilities, and basic services—including housekeeping—required for a Touristic Suitability Certificate.
In addition, the Decree requires submission of an electronic application and data-reporting obligations through the Ministry’s designated digital forums and website.
Conclusion
MOTA’s 2025 Decrees represent a pragmatic modernization of Egypt’s hospitality and real estate regulatory landscape. While detailed technical specifications are periodically updated, early engagement with MOTA’s Digital Licensing Portal and local Tourism Directorates is strongly advised. Developers, REITs, and asset managers should initiate audits of property titles, zoning consistency, and tax filings to ensure full alignment with the new licensing standards. We expect that this regime will serve as a gateway for institutional capital into Egypt’s short term rental segment, previously constrained by lack of legal visibility.
Next Steps for Clients
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- Portfolio Review: Identify potential holiday home assets and confirm zoning suitability with Governorate and urban planning authorities.
- Licensing: Prepare technical and compliance documentation for filing.
- Contracts Review: Align marketing, management, and operator agreements with the new statutory framework.
- Tax Alignment: Ensure ETA registration and accounting treatment for short term rental income.
- Engage authorities: Liaise with the relevant governorate tourism offices to pre-clear suitability and zoning
If you would like more information about this topic then please contact us.
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