FAQs about buying property in Egypt

• What are the procedures?
• How much does it cost?
• Taxes

Who can buy property in Egypt?

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. New laws have been established to make the Egyptian property purchase procedure more secure.

What is the process?

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

Most Egyptian properties are not registered, even though registration is an essential pre-requisite to a purchase. Therefore the lawyer's assistance in liaising with the Real Estate Registration Office in Egypt is essential in order to ensure the property is duly registered and prepared for foreign purchase. Registration can take up to four months. After inspections and payment of taxes/fees, you will finally obtain a new title from the Registry.

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.

How much are legal fees?

The registration fees are normally 3% of the purchase price and legal fees are typically the same. We have special arrangements with UK and local lawyers for our members. Stamp Duty on property is payable by the buyer at 3%. The buyer will also pay a small inspection and measurement fee (approx. 65 euros).

What are connection fees?

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.

Are there any service charges?

Most new developments of villas or apartments that have communal facilities now arrange maintenance and will charge an annual service charge.

Selling Costs

There are no government restrictions on selling your property.

Running Costs

• Annual Municipal Taxes are normally less than £100 p.a.
• Electricity supply is 240 volts AC 50Hz. The power supply is subject to disruption and we can supply back up generators or UPS systems on request.
• Water is by mains supply and in some properties supplemented by wells. Water is stored in your tank which should be large enough for three days supply as some areas are only refilled every other day. Water is normally potable and can also be purchased via tanker.
• Drainage is via individual septic tanks which require servicing every 18-24 months at a typical cost of £25.
• Telephone lines can take several months to be connected but do provide International direct dialling. Internet connections are relatively cheap at no more than £10 p.m. Broadband is available by satellite but is expensive at present.
• Satellite (including Sky) TV is available.
• Mobile phones have extensive coverage in Egypt and are relatively cheap.

Taxes

Tax on any form of income from property runs at 20 to 22% and is basically the alternative to Value Added Tax. Many countries enjoy a double taxation treaty with Egypt. Egypt levies no inheritance or capital gains taxes.