Q: Who can buy property in Egypt?

A: Foreign purchasers have the right to purchase both real estate and land in Egypt. The government recognizes the impact that foreign investment in property can have on the economy and have set about actively encouraging overseas buyers to Egypt.

Q: Why Egypt and Why Now?

A: Egypt offers stunning natural features and a rich history and culture that will never fail to attract visitors looking for an interesting medium haul destination, only 5 hours flight from the UK. The property investment climate in Egypt has never been better and returns of between 20 and 30%, commonplace over recent years, look set to continue.
Egypt’s economy is reassuringly stable and the country shows great potential for those who buy property in Egypt now, while prices remain very low. Increased investment in the tourism sector and new and existing infrastructures as a whole will ensure that your property purchase is a profitable one.

• The Egyptian Government aims to increase visitors to Egypt to 16 million by 2014
• The demand for rental accommodation is high since Egypt is a popular holiday destination
• Favourable tax situation
• Easy access from UK to Egypt: several airlines flying direct into Egypt
• High investment which has created potential capital appreciation of 20-30%
• Egypt is politically stable
• The cost of living is quite low
• Excellent climate - year round sunshine
• Enticing culture

Q: Is it possible to get a mortgage on an Egyptian property?
A: Yes.

Q: What are the tax implications in Egypt when purchasing property?
A: The Egyptian government is dedicated to attracting foreign investment meaning that the way is being eased for investors. Recent changes to streamline the purchasing process in Egypt has resulted in more foreigners buying property in Egypt: no capital gains tax, no stamp duty and no inheritance tax.

Q: Is a solicitor needed?
A: Yes. It is the same with any house purchase – it is advisable to appoint a good solicitor are required.

Q: What is the buying Process in Egypt?
A: The purchasing process involved in investing in a property in Egypt is very straight forward. Once you have selected a property a reservation fee is payable in order to fully secure the unit chosen. At this stage it is advisable to appoint a solicitor to work on your behalf – it is highly recommended to choose one who is versed in Egyptian law. Once the reservation fee has been paid, contracts will be sent to you for signing (within usually one month). Upon signing the remaining deposit is payable – a typical deposit is 40% (minus the reservation fee). The balance is payable upon completion.

Lawyers in Egypt will normally speak English and will be able to produce your necessary paperwork in Arabic, as required by all the authorities. Egypt has many complex real estate registration issues so it is critical to have a lawyer conduct the appropriate searches and provide you with legal advice regarding the purchase.
Contracts of sale are drawn up and notarised, at which time a deposit is payable (normally 10%), and a completion date is set. In many cases, the purchaser can return home leaving a power of attorney with their solicitor, who can then complete the purchase.

Q: How much are legal fees?
A: Around 6%. The registration fees are normally 3% of the purchase price and legal fees are typically the same. Stamp Duty on property is payable by the buyer at 3%.

Q: What are connection fees?
A: New properties are connected to electricity, telephone and water supplies on the completion of the development and the utility companies charge each property an amount based on the cost of connecting the development. The cost varies depending on the area and the distance from the nearest supply but is rarely more than £500 in total.

Q: Are there any service charges?
A: Most new developments of villas or apartments that have communal facilities now arrange maintenance and will charge an annual service charge.

Q: What are the Selling Costs?
A: There are no government restrictions on selling your property.

Q: What Fees and Taxes will I have to Pay?
A: Egypt levies no inheritance or capital gains taxes.

Q: Are there any restrictions on buying property in Egypt?
A: Foreign nationals are restricted by law to owning only two properties at any one time and these must not be larger than 4,000 square metres in size Make sure your lawyer is bilingual and is familiar with Egyptian property law, search procedures and sales negotiations Once the sale has been completed and all contracts signed, the property must be registered with the local real estate department and the public notary. A fee of three per cent of the value of the property is required to be paid on registering the purchase. There is also an annual real estate tax that varies depending on location and standard of property. Make sure your vendor is up to date on any tax due before the sale goes through or you'll pick up the tab for his portion too.

Q: What is the economic and political situation?
A: Egypt’s political situation today is stable and a completely democratic republic is expected within the near future. This bodes well for the country as a whole and puts Egypt firmly back onto the tourist map. Egypt’s political system currently receives much needed financial support from the US which is helping to project the country into a new era of optimism. Economically, Egypt’s emerging property market and established tourist industry look set to complement each other perfectly. The Egyptian government is committed to encouraging much needed foreign investment through political reforms which are boosting the economy to new levels.

Q: How do we travel to Egypt?
A: There are many airlines serving Egypt from the UK. New services and fares are constantly being added to their routes, so you should refer to the following airlines for more details:

• British Airways
• Egyptair
• Excel Airways
• First Choice
• Flythomascook.com
• GB Airways
• Sudan Airways
• ThomsonFly

Q: What is the direct flying time from UK to Egypt?
A: Approximately 5 hours

Q: Is a visa required to enter Egypt?
A: Visas are required for entry to Egypt. EU nationals travelling to Sharm El-Sheikh, Dahab, Newiba and Taba for up to 14 days receive a free visa stamp in their passports upon arrival. Tourist visas for Egypt can often be obtained upon arrival in Egypt for citizens of most countries, otherwise a visa will need to be applied for. Work visas are also required for renewable periods of 12 months.

Q: What is the likely term and rates of a typical mortgage that I will be offered?
A: . Mortgages currently available are via a number of Egyptian banks and are all based on a repayment option, for a minimum term of 12 years at a rate of 6.5% (sts). However, it is expected that over the next two years, the Egyptian market is likely to open up a lot more and these rates will improve significantly

Q: Is it true that by purchasing a property in Egypt I will automatically be entitled to a resident’s visa?
A: No – Although purchasing a property in Egypt does facilitate the process, residence is not guaranteed and owners will need to apply via the standard procedure outlined by the Egyptian Embassy. For further information, contact the Egyptian Embassy on: 020 7499 3304

Q: What form will the contract of sale take?
A: The contract of sale will be a private agreement concluded directly between the vendor and the purchaser and signed in a private capacity.

Q: Are taxes payable on the purchase of a property in Egypt?
A: No

Q: Is any capital gains tax or value added tax payable?
A: There is no special tax on capital gains and no value added tax is payable

Q: Is inheritance tax payable?
A: No. Moreover, the acquisition of property by entail is also exempt form the 2.5 % tax on sales.

Q: What school systems are there?
A: International school

Q: Are there hospitals?
A: Yes, of international standard

Q: Is there a peak / off-peak season?
A: Although the weather is excellent all year round, the period from October- May is generally regarded as the peak season.

Q: Is the beach / sea front child-friendly?
A: Yes, the beach slopes gently into the sea.

Q: Can foreigners buy a car in Egypt?
A: Yes

Q: Do you need an international driving licence?
A: Yes

Q: As from when do you need a residential visa?
A: If you wish to stay in the country for more than 3 months.

Q: How long does it take to get to Cairo or Luxor?
A: Approx. 4 - 5-hour car drive, approx. 1-hour flight.

NB: the above information is provided as information only and no responsibility will be taken for any accuracy contained herein.