BUYING PROPERTY IN EGYPT

Buying property in Egypt is not complicated, and most developers we work with will be able to recommend a local lawyer to you in order to assist you in the purchase process. However, in order to ensure that you receive totally independent and unbiased advice, we strongly recommend that you hire an independent lawyer. We will be happy to recommend some English independent lawyers to assist you with buying property in Egypt. We will send you the list upon reservation.

In order to buy property in Egypt, you need to obtain a residence visa. This is a formality and your lawyer can arrange, even if you are not planning on spending much time in the country. A residency visa will be issued for a period of three or five years.

It is wise and cost effective to give your lawyer a ‘Power of Attorney', so they will be able to sign legal documents on your behalf during your absence. In the long run it saves you money, instead of making special trips to Egypt in order to complete the buying process.

The lawyer’s fees to assist you in buying a property in Egypt are in the region of EUR500-600 to take you through the entire buying process.

If you're buying an off-plan property in Egypt which will be completed at some point in the future, you would need to sign a reservation agreement and pay a small reservation deposit (the reservation may or may not be refundable depending upon the developer, so be sure confirm this beforehand).

The main document involved when buying a property in Egypt is an initial sales and purchase contract that will be drawn up by the developer. This is a formal, legally-binding contract which contains all of the important information about the agreed property purchase, i.e. the details of the property, the total amount payable, the deposit, penalty clauses, etc.

Once the contract is signed the buyer will need to pay the deposit, usually within a month of signing the contract. The amount of the deposit differs from one development to another, but is usually in the region of 30-50%.

The balance of the funds is usually payable in stages (depending upon the progress of construction) between the signing of the contract and the handover of the property once it is finished. The actual terms of payment vary from developer to developer.

Once the property is complete, your lawyer needs to arrange that ownership of the property is transferred into your name.

To complete the purchase, the buyer of the property needs to pay the closing costs. (equivalent to Stamp Duty in the UK). It used to be equal to 3% of the property's value, but is now a fixed sum which varies according to the location of your property. The maximum amount that this will cost is currently EGP2000 (GBP180/EUR260). You will also need to pay a small inspection and measurement fee of approximately GBP50/EUR65.

You have two options as to how you finalize the deal. One option is to get your lawyer to register you as the owner of the property at the Land Registration Office. The downside of this, however, is that foreigners are allowed to buy a maximum of two properties in Egypt, with a maximum of 4000m2 of floor space between them. The foreigners are also not allowed to sell property in a period of less than five years from buying a property in Egypt. This could be a problem if you are looking to re-sell a property in Egypt for a quick profit during a relatively short period of time.

The way to get around these limitations is to register your ownership with a notary, which costs around EGP2000 (GBP180/EUR260). It will confirm your ownership of the property in Egypt, but it does not add your name to the Land Registry. This means that you are free to buy as many properties as you like and you can also sell your property at a time that is convenient for you. As a result, this option is probably going to be the better of the two.

For further information please visit this independent property guide:
http://www.globalpropertyguide.com/Middle-East/Egypt/Buying-Guide

Accompanied site viewing trips to buy property in Egypt

We want to ensure that our customers choose the villa or apartment in Egypt that is absolutely right for them. We also want to make sure our customers are fully confident about the deal, the location, the developers and have all of their questions answered. We encourage all potential buyers to travel to Hurghada to meet with developers and to see the current state of the project. However, the majority of sales are off-plan apartments or villas and the clients prefer to reserve a property without a trip. Clients therfore visit the project when the construction has progressed.

We are happy to provide all necessary assistance in order to make your inspection trip as simple and informative as possible. We are not tied to any developer and you will see as many developments as you wish.

In order to make sure that our clients get the very best deals when it comes to booking an inspection trip to Hurghada, we recommend that British clients book a package tour via teletextholidays.co.uk where prices for a one week trip can cost from as little as GBP300 per person.

We can assist you with all your needs while you are in Hurghada in order for you to look at potential property purchases, such as airport pick up, escorting you to your hotel, discussions regarding your property requirements and showing you around all of the properties that meet with your criteria). We can also introduce you to independent lawyers, sellers of furniture packs, rental agencies, etc. so that you have a choice of which service providers to work with (rather than having to accept the offer of the developer of the particular project you are looking to buy into).

We do not arrange organised group viewing trips and therefore do not practice pressure sales!

INVEST SAFELY WITH US IN EGYPT PROPERTY!