Egypt’s booming real estate market, affordable prices, and government incentives make it attractive for foreign buyers. However, navigating legal requirements can be complex. This guide explains ownership rights, payment processes, and key precautions.
Can Foreigners Own Property in Egypt?
Yes, but with restrictions:
- Foreign individuals can own up to two properties per person (residential only).
- Commercial properties (e.g., hotels, offices) require government approval.
- Agricultural land is prohibited for foreign ownership.
- Sinai Peninsula and border areas have special regulations (often lease-only).
Tip: Verify property eligibility with a local lawyer before proceeding.
Freehold vs. Usufruct Rights: Key Differences
1. Freehold Ownership
- Full ownership rights (buy, sell, inherit).
- Applies to residential units in approved areas (e.g., New Cairo, North Coast).
2. Usufruct (Right of Use)
- Long-term lease (up to 99 years) without ownership.
- Common in Sinai or for agricultural land.
- Cheaper but less control.
Note: Freehold is preferable for investment; usufruct suits vacation homes.
Step-by-Step Buying Process
Step 1: Choose a Property
- Focus on tourist zones (Hurghada, Sharm El-Sheikh) or new cities (New Administrative Capital).
- Use verified platforms like Property Finder Egypt or work with a licensed agent.
Step 2: Due Diligence
- Check the title deed (Al-Haqq Al-Aradi) for legal disputes.
- Ensure the property is registered at the Egyptian Survey Authority.
- Confirm no outstanding taxes/fees.
Step 3: Transfer Funds Legally
- Foreign buyers must pay in foreign currency (USD, EUR, GBP) via:
- Official bank transfer (keep receipts for contract registration).
- Egyptian bank account (non-resident accounts allowed).
- Avoid cash payments (illegal for amounts over EGP 50,000).
Step 4: Sign Contracts
- Preliminary Agreement: 10% deposit, outlines terms.
- Final Contract: Notarized at the Notary Public Office.
- Green Contract (Aqd Akhdar): Proof of land ownership (required for villas/land).
Step 5: Register the Property
- Submit documents to the Real Estate Registry:
- Passport copy (authenticated).
- Proof of fund transfer.
- Tax clearance certificate.
- Fees: 2–3% of property value.
Processing Time: 4–8 weeks.
Legal Quick Tips
- Always hire a bilingual lawyer to review contracts.
- Verify developer licenses (especially in new compounds).
- Avoid “off-plan” purchases without escrow accounts.
- Tourist properties: Check if short-term rentals are allowed.
Taxes & Fees
- Registration Tax: 2.5% of property value.
- Annual Property Tax: 10–40% of rental income (if applicable).
- Capital Gains Tax: 2.5% if sold within 5 years.
FAQ
Q: Can I get residency by buying property?
A: Yes! Purchasing property worth ≥ $50,000 qualifies for a 5-year renewable residency.
Q: Are mortgages available for foreigners?
A: Limited. Some private banks offer mortgages (e.g., CIB), but 50% down payment is typical.
Conclusion
Buying property in Egypt as a foreigner is straightforward if you follow legal steps. Partner with reputable agents, transfer funds properly, and prioritize due diligence. With its high ROI and lifestyle perks, Egypt remains a top choice for investors.
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