The country’s all year round warm weather and wide selection of properties has made Egypt a popular choice amongst international investors.
The country has a rich history and stunning beaches that have long attracted tourists from across the globe. The increasing popularity of scuba diving, wind surfing and kite surfing has brought a wealth of visitors looking to exploit the benefits of Red Sea life.
The Egyptian government has recognised the importance of foreign investors buying property in the country to further Egypt’s economy and they have introduced new laws to make the buying process more secure and straightforward.
Whether you are looking for a retirement option, holiday home or investment property, this buying guide will give you a general overview of the buying process in Egypt.
The process of buying a property in Egypt
When buying in Egypt, is it important to ensure the developer provides you with all the necessary paperwork for the buying process to run smoothly with no hitches. Most new developments should have a due diligence pack. It is important the buyer requests these documents in order for them and/or their lawyer to make full checks on the property.
It is typical to be asked to pay a reservation fee of approximately £3000 to reserve a property before being handed a sales and purchase contract. This sales and purchase contract should be in Dual Language as Arabic is required by law and is the binding side of the agreement. As such it is recommended that any translation is certified.
Upon exchange of contracts the buyer will be required to pay the contract exchange sum, which executes and binds the purchase agreement between the buyer and the seller. Upon completion the buyer can then legally register the property.
Registering your property
When purchasing a property in Egypt there are two ways to register the property. One option is the buyer can choose a full registration or Green Contract. Choosing full registration will give the buyer full protection and allows property owners to register multiple properties that can be rented or sold depending on what the owner has in mind.
The other option is a Signature of Validity, which is a process of registering the property through the courts. This is a flexible and recognised process that is often chosen by buyers who want to rent or sell a property. It is now the most popular choice amongst overseas investors as it has no restrictions for ownership and has tax advantages for landlords who want to rent.
Buyers must acquire a ‘Negative’ certificate for their property from the Egyptian government to make sure there are no existing mortgages or any other issues. Buyers must also get a tax certificate that states what taxes are due on the property.
It is important to bear in mind this process can take up to six months and there is a charge of approx 2,000 LE.
For any more questions on buying a property in Egypt, contact Select Property’s sales team who will be happy to answer any of your questions.