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Property purchase

Foreign ownership

It is possible for foreigners to purchase property and land in Egypt. In 2005, Prime Minister Ahmed Nazif issued decree number 548 as part of wider reforms, a decree that was designed to help encourage non Egyptians to invest in the growing tourist areas. This effectively streamlined purchasing procedures in Egypt and as a result the country now attracts more overseas property purchasers than ever before. This can also be put down to the fact that Egypt has lower taxes than in many other countries and no capital gains or inheritance tax.

Limitations on foreign ownership

Foreign ownership of property in Egypt is limited to two residential properties per family, the combined area of the properties must not exceed 4,000 sq. m. and they cannot be within a historical site. There is a resale restriction of five years, however exceptions can be applied for.

Buying steps: reservation deposit

To reserve a property in Egypt the purchaser needs to pay a reservation deposit which provides the ‘option to purchase’ and fixes the sale price from the date of reservation. The amount of the reservation deposit is typically around €3,000 and is fully refundable.

Buying steps: purchase contract

The vendor will then arrange for a private purchase contract to be drawn up and for the provision of all paperwork relating to title, planning permission, licenses, boundaries, etc. Foreign purchasers are advised to obtain a bilingual purchase contract and to have this reviewed by independently hired lawyers in order to ensure that everything is as it should be.

Buying steps: registration

The buyer requests registration details from the real estate registry. After inspections and payment of taxes and fees, the buyer gets a new title from the registry. The process of registration of real estate in Egypt is usually handled by the lawyer, since it is complicated and can have many irregularities.

Costs of purchase

• There is no VAT charged on buying a property in Egypt.
• Property registration and legal fees for conveyance vary due to the complicated nature of registration, but typically total around 6% of the purchase price.
• The buyer pays a nominal inspection and measurement fee of around €65.

Related items

Documents and Reports

	Egypt property investment report (392Kb)
Documents and Reports

Other related pages

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