• Egyptian property registration is an essential pre-requisite to a purchase.
• Foreign ownership is limited to two residential properties per family, with a combined area not exceeding 4,000 square meters or within a historical site. (There is a resale restriction of five years, although exceptions can be applied for)
• Registration is complete after inspections are made and any payment of taxes and/or fees is made. • A holding deposit is payable once the property is decided upon; that will take it off the market and start the contract process.
• It is advisable to have a lawyer conduct searches and advise on the legality of the purchase, even if the property is brand new and being purchased from an established developer.
• Mortgage products are available in Egypt although an overseas investor may wish to consider mortgage options outside of Egypt too.
Costs of a standard property purchase in Egypt include the following:
• Property registration and legal fees for conveyance total around 6%.
• Stamp Duty is payable on property at 3%. However, in Egypt there is no stamp duty or capital gains tax payable on real estate.
• British residents will avoid inheritance tax on any Egyptian properties passed on to relatives and partners etc.
• The buyer pays a nominal inspection and measurement fee of around 65 Euros.
• Tax on income from the property amounts to 20% to 22%, an alternative VAT.
