Properties in Egypt attracts foreign investors with its low prices, mild climate and the possibility of year-round recreation. In this article, we will look at the key points of buying property in Egypt, including the types of ownership available, the legal regulations for foreigners and the step-by-step acquisition procedure.
Forms of ownership for foreigners
Egypt offers several property options for foreign citizens. Each type has its own characteristics, which are important to consider when purchasing:
- Freehold is full ownership of real estate. This type is available in the African part of Egypt, for example, in Hurghada. Freehold owners can fully dispose of their real estate, including sale, rental and transfer to inheritance.
- Leasehold – long-term lease right for up to 99 years, most popular in the Sinai Peninsula (for example, Sharm el-Sheikh). Leasehold allows you to transfer property to sublet and by inheritance, but does not give the right to full ownership.
- Usufruct is the right to use real estate for life without the possibility of changing it or transferring it into ownership to other persons. This type also lasts until age 99 or the death of the current owner.
Such relationships in the market are not typical for Ukraine, but in practice they prove their convenience, so do not be afraid to try something new.
Rights of foreign buyers
Egyptian legislation regulates quite flexibly the rights of foreign citizens to own real estate. We present to you its key features that you should pay attention to before signing a purchase and sale agreement:
- foreign citizens can own freehold property in some parts of Egypt;
- on the Sinai Peninsula only long-term lease is possible (leasehold or usufruct);
- there are no restrictions on the number of objects or their area for foreigners;
- foreign companies can own land and real estate provided they register the company in Egypt.
You should also remember that Egypt offers attractive conditions for obtaining a residence permit or citizenship through real estate investment. This could be an interesting option for those planning a long stay or looking to invest in the country. We invite you to learn more about the options for obtaining a residence permit to understand which one is suitable for achieving your goals:
- purchase of real estate in the amount of $50,000 = residence permit for 1 year;
- purchase of real estate in the amount of $100,000 = residence permit for 3 years;
- purchase of real estate in the amount of $200,000 = residence permit for 5 years.
If you are planning to make a larger investment (worth $300,000 or more), you can get not just a residence permit, but Egyptian citizenship. The purchased property can be sold after 5 years.
The procedure for purchasing real estate in Egypt: 6 steps to success
The process of buying property in Egypt involves several steps, and it is important to carefully follow each of them to successfully complete the transaction.
- Selecting an object and making a reservation. After selecting a property, you must make a deposit, which usually ranges from $1,000 to 10% of the property's cost. At this stage, a preliminary purchase and sale agreement is concluded, confirming the seriousness of your intentions.
- Legal check. The buyer's or agency's lawyer must check the purity of the transaction and the availability of all necessary documents for the property. For primary market purchases, this includes a land title certificate and a building license. On the secondary market, documents of previous owners are checked.
- Conclusion of the main agreement. The main agreement is signed after completion of the due diligence. If a transaction is concluded with the participation of a foreigner, the contract is drawn up in two languages: Arabic and the buyer’s native language. By having two copies, misunderstandings will be avoided.
- Payment. Payment can be made by bank transfer to the account of the seller or agency. It is worth noting that from 2023, settlements for transactions with foreigners are carried out exclusively in foreign currency; local pounds cannot be used.
- Property registration. After full payment of the transaction, registration of rights to real estate occurs. In Egypt, this can be either recording the transaction in court, or obtaining a green contract confirming the registration of the property in the state registry.
- Payment of the registration fee. It is produced by the buyer, so be sure to include the required amount in your budget. The amount of the fee depends on the area of the property: up to 100 m² – 500 Egyptian pounds ($10); 100-200 m² – 1,000 Egyptian pounds ($20); 200-300 m² – 1,500 Egyptian pounds ($30); more than 300 m² – 2,000 Egyptian pounds ($40.5).
Buying real estate in Egypt is a real opportunity not only to invest profitably, but also to gain access to life in one of the sunniest resorts in the world. When choosing real estate, it is important to take into account the specifics of local laws and carefully approach each stage of the transaction, including legal due diligence, conclusion of contracts and registration of ownership.