How can foreigners buy real estate in Egypt: rights, obligations, and the transaction process?

Rights and obligations of foreign investors in Egypt

In Egyptian territory, foreigners wishing to invest in real estate face certain rights and obligations in this matter. It is important to note that different administrative units of the country provide for various types of ownership, each establishing its own rules for acquiring property.

Lizhold on the Sinai Peninsula

For example, in the Sinai Peninsula, including well-known tourist spots like Sharm El Sheikh, foreigners can rent property for a maximum period of up to 99 years. This form of rental is calledlickholdorusufructSince 2005, foreign citizens have been prohibited from becoming owners of land plots in this region. However, the exclusive rights of a leasehold owner include the ability to:

• real estate sales;
• rentals;
• gifts;
• inheritance of your property.

It is significant that there are no restrictions on the number of objects that can be obtained in leasehold, as well as on their total requisition. At the end of the lease term, the tenant has the preferential right to extend the contract for another 99 years.

Full ownership in Hurghada

If we consider other regions of the country, especially those likeHurghadaforeigners can obtain full and unlimited ownership rights to real estate, known asfreeholdTo obtain this status, it is necessary to register your property and receive what is calledgreen contractHowever, in this case, a restriction has been established:

• A foreigner is allowed to own no more than two properties.
• The properties must be owned by him for at least five years.

Differences between freehold and leasehold

To better understand these terms, it is worth highlighting thatfreehold— this is full ownership, which citizens of Russia and many CIS countries are familiar with. It implies that you have complete control over your property and the right to manage it as you see fit.

Unlike this,lickholdimplies the right to long-term use of property for 99 years, which is practically similar to long-term leasing, within which it is also possible to rent out the property and transfer rights to heirs. This form of ownership is common in many foreign countries, such as Thailand, the UAE, and the UK.

Investments of foreign companies

Since 2015, foreign companies have been allowed to own land and real estate in Egypt for business development purposes. However, to do this, it is necessary to register a company in Egypt in the form of:

• joint-stock company;
• limited liability companies;
• partnerships.

At the same time, there are favorable conditions: there are no restrictions on the citizenship of the founders or their place of residence, which gives investors greater freedom of action.

Obtaining a resident visa

Additionally, when purchasing real estate in Egypt, it is possible to obtain a long-term lease.residential visa...valid for up to six months with the possibility of further extension. It is important to note that if you leave the country, this visa will be canceled, so upon your return, you will need to reapply for it.

General information about visas and real estate in Egypt

In 2021, in light of changes in the epidemiological situation, the process of obtaining and extending visas may vary. Therefore, it is recommended to seek up-to-date information directly from consulates or embassies.

Egypt delights with its democratic housing prices: the cost per square meter on the Red Sea coast starts at just250 US dollars.

Real estate search

To find suitable real estate in this country and explore price offers, you can use various online platforms that feature major construction companies and real estate agencies. Among such resources, the following stand out:

• Real Estate Egypt
• Property Finder
• Egypt Real Estate Hub

There is also a portal available in Russian that offers real estate in Egypt. Although the database on this site may be small, it is still useful as it includes only those properties that are typically of interest to foreign clients. Mainly, these are apartments in resort complexes by the coast.

If you couldn't find the option you wanted, you can submit a request, and the realtors will find offers that match your requirements.

Collaboration with local agents

In Egyptian resorts, it's common to see locals offering housing search services — among them can be both expatriates and spouses of Egyptian citizens. However, it's important to remember that working with such specialists can be risky, as their qualifications and experience are often not verified.

If you have decided to turn to a private agent, it is strongly recommended to first make a deal with an independent lawyer who will check all aspects.

Traditional real estate agencies

Traditional real estate agencies also operate in the Egyptian market. Although their activities are not licensed, working with legal entities is generally more reliable than dealing with individuals. These companies have:

• Founders being checked by the security services of Egypt
• Official address
• International bank accounts used in transactions
• Responsibilities for paying taxes and social contributions for their employees

It is important that a contract is drawn up when collaborating with an agency, clearly outlining the obligations of both parties. In case of a violation of your rights, you can always turn to the court. Before starting the collaboration, it is advisable to familiarize yourself with the agency's reputation online.

Additional resources and news

Additionally, you can find lists of realtors and developers in Egypt who work with international clients. It is recommended to subscribe to a Telegram channel that publishes current news about the overseas real estate market.

Procedure for a real estate transaction

Now let's go through the steps necessary to close a real estate deal. The first step is to choose a property, after which you need to make a deposit to reserve it, which can vary from1,000 dollars.to10% of the total cost of housing.

At this stage, a preliminary purchase and sale agreement is also signed, which is a key step towards acquiring the property.

The role of an agency in real estate purchases

When making a decision to purchase real estate through an agency, the company acts as a guarantee for the fulfillment of all the terms outlined in the contract. In particular, the agency takes on the responsibility of securely holding the deposit funds until the official completion of the transaction.

Necessary data in the contract

The contract must include the following information:

• Contact information of the parties;
• Passport numbers;
• Bank details of the seller and buyer;
• Information about the agency;
• Price of the property;
• Deposit amount;
• Terms of subsequent payments;
• Additional aspects such as the apartment's area, transfer deadlines, guarantees, and services.

The role of a lawyer in a transaction

It is necessary to have an experienced lawyer.who can be either independent or work for a brokerage company, carefully checked all the documents and ensured the legality of the transaction.

When purchasing real estate on the primary market, the buyer is required to have:

• Certificates of registration of rights to the land plot;
• Construction licenses;
• Approved project.

If the transaction concerns the secondary market, the seller is obliged to provide all previous certificates of ownership and a document confirming the current rights to the property (the so-called tawkil).

Completion of the deal

To complete the transaction, the buyer will only need a foreign passport. After the deposit is made, both parties will sign the main sales contract.

In the event that a foreign citizen is involved in the transaction, the contract is drafted in two languages — Arabic and the buyer's language. Signatures from both parties are placed on each page of the contract.

Contract content

The contract should include information about each party to the transaction, including:

• Identification documents;
• Addresses;
• Contact phone numbers;

It is also necessary to provide complete information about the purchased property, such as:

• Land plot number;
• Name of the residential complex;
• Floor;
• Apartment number;
• Area;
• Number of rooms;
• Presence of a balcony.

An important aspect of the contract is also the indication of the property's value.

Obligations of the parties

The next step in the contract outlines the obligations of the parties. Usually, if one of the parties refuses to proceed with the deal without a valid reason,The fine is about 30%.from the cost of the object.

The conditions for further use of the apartment should also be specified in an official document. For example, there may be restrictions for balconies in apartment buildings:

• Ban on painting facades;
• Prohibited glazing of balconies;
• Rules for using roofs.

Methods of payment

Payment can be made via bank transfer to the agency's or seller's account, or in cash. However, the latter option is becoming increasingly less popular.

When purchasing a new building, the payment is usually made in stages, according to the completion of construction work. The final payment is typically made only after receiving permission to put the building into operation.

After the payment for the real estate and its transfer from the construction company, in the case of a new project, the buyer receives a document called a "tawkeel." This document is an irrevocable power of attorney that grants the right to manage and dispose of the purchased property. The issuance of the tawkeel is carried out by a notary exclusively in Arabic and is done at the request of the seller. After that, it is handed over to the new owner. The procedure is conducted at a notary office known as "shara akari," located in cities such as Cairo, Hurghada, Sharm El Sheikh, and Kena. It is also possible to obtain a tawkeel at the Egyptian consulate outside the country.

Sale of secondary real estate

When selling secondary real estate, it is important to provide both originals and copies of all documents from previous owners. Usually, the process of preparing the documents takes no more than three hours; however, the contract may specify a longer time frame, as the seller or developer may be abroad. After signing the sales contract and receiving the documents, the buyer becomes the full owner of the property.

Transaction registration

Although the registration (legalization) of a transaction is not mandatory, most foreign citizens investing in real estate in Egypt prefer to go through this procedure. There are two main methods for officially registering property rights:

• Registration of the contract in court.This includes entering information about the transaction into the unified state register, known as the ARE. This, in turn, ensures the receipt of a registration certificate. Completing this procedure can take from two to four months.
• Obtaining a green contract.This document is issued in the name of the owner or several individuals and confirms that the real estate is registered with the authorized state institutions. The green contract provides the owner with confidence in their property rights, as it guarantees protection from the state. The time required to process a green contract can vary from six months to one year.

Remote transactions

For those planning to purchase real estate in Egypt without the need for physical presence, there is an option to conduct the transaction remotely. According to information from many real estate agents, most of these transactions are carried out in this format. Property rights are confirmed by two important documents — the sales contract and the title deed. The presence of the parties is not required. To successfully complete the transaction, it is necessary to sign a contract with the chosen agency, which will serve as the basis for making the payment through the bank to the official account of the legal entity.

Legal formalities

If the buyer needs to register the transaction in court, arrange for electric meters, or obtain a green contract, they will need to independently create a power of attorney for a lawyer. This step will allow the specialist to represent the buyer's interests in all necessary instances. Following these formal procedures will help ensure legal protection of property rights and make the process safer and more comfortable for the buyer.

Features of buying real estate in Egypt

An important aspect to consider when purchasing real estate in Egypt is that only a professional lawyer, not a real estate agent, provides services in this area. Agencies can assist in finding a lawyer, but this option usually involves an additional fee. You can also choose an independent consultant.

Against the backdrop of the pandemic, the real estate market in Egypt has faced certain challenges, but despite the situation, work continues in the Cairo area on the construction of a new residential complex that will be able to accommodate up to 30,000 people.

Additional expenses when purchasing

Buyers should keep in mind that there will be additional expenses. The registration fee must be paid by the buyer, and its amount depends on the area of the property being purchased. If the area is:

• up to 100 square meters — 500 Egyptian pounds (about $31);
• up to 200 square meters — 1,000 pounds (approximately $64);
• up to 300 square meters — 1,500 pounds (approximately $95);
• up to 1,000 square meters — 2,000 pounds (approximately $127).

Legal expenses

Legal expenses may include the services of lawyers working in real estate agencies who handle document verification and contract drafting. If the purchase is made without intermediaries, it is advisable to consider hiring a lawyer. Typically, the cost of legal services ranges from1% to 3%from the total amount of the deal.

Real estateagency commission

Commission rates at real estate agencies in Egypt do not have strict standards and are not subject to legislative regulation. In many cases, the commission is already included in the property price, but there can be exceptions. Therefore, it is advisable to discuss this matter with your agent in advance.

Tax on the transfer of property rights

When transferring rights to a real estate property, a tax is imposed in the amount of2.5%the seller must pay.

Developed infrastructure

Near this property, there is a well-developed infrastructure: it features a tourist promenade, various shops, cafes, and restaurants, as well as a medical facility. The studio is located on the fourth floor and, unfortunately, does not have a balcony. It is being sold with furniture and appliances.

Offers from Sunresidence

Sunresidence offers a unique studio in Hurghada, Egypt, with a total area of 38 m² for the price of €874. There is an option for an online viewing of the property and remote transaction processing. Payment can be made in rubles or cryptocurrency. This cozy accommodation is located in the Tiba Plaza complex, making it an excellent choice for investment.

Apartments from Idealhome

According to information from Idealhome, there is an apartment in Hurghada with an area of 48 m², priced at €163. There is also the possibility of financing.Residence permitWhen purchasing, a remote transaction is possible with payment in rubles or cryptocurrency. This property is ideal for renting out and is located in a modern residential complex from a reliable developer. A payment installment plan is available for up to 2.5 years.

New construction in Hurghada

In the north of Hurghada, the construction of a new residential complex "Three Pyramids" is ongoing, located just 7 minutes away from the prestigious El Gouna area and surrounded by five-star hotels. Nearby, you can find a well-developed infrastructure: a new and beautiful promenade, shops, and cafes.

Apartments from Sunresidence

Sunresidence also offers apartments for sale in Hurghada, measuring 26 m² for €334. The project was completed in 2009 and is located on the third floor of a five-story building. The apartment includes one bedroom, an American kitchen, and a bathroom, as well as a balcony overlooking the pool.

The complex offers 24/7 security and is located near a public beach and a supermarket.

Offers from Noa Real Estate Egypt

The company Noa Real Estate Egypt offers a studio of 45 m² for €793 with a beautiful view of the sea and pool in the Sky2 complex. The area is very attractively designed and has security, and the sea is just a few steps away.

Other offers from Idealhome

• Apartment on Mardariss Street, 45 m², priced at €793, featuring two bedrooms and one bathroom. It is located in close proximity to the sea and Sheraton.
• An apartment of 75 m² for €793 in the El Ahia area, close to the sea and with high-quality renovations.
• A 34 m² apartment for €369, with the possibility of obtaining it.Residence permitWhen making a purchase, a remote transaction can be arranged, and payment is also possible in rubles and cryptocurrency.

New residential complex Aqua Infinity

This property is suitable for rental purposes, and the residential complex itself is a new project from a reliable developer. A one-year payment plan is available, along with special offers upon purchase. The new residential complex Aqua Infinity is the third project in the lineup from this developer and is located in the actively developing area of Hurghada, El Gamasa, just 400 meters from the sea.

Apartment owners can use the infrastructure of all the complexes from the developer.

Buying an apartment in Hurghada

Buying property in Hurghada, located in Egypt, presents a wonderful opportunity for investors and those dreaming of obtaining residency. Among the range of offerings, there are many types of real estate, including an apartment with an area of 34 m², priced at 36,900 euros. When purchasing property, you will have the chance to apply for residency.

The deal can be conducted remotely, and payment can be made in rubles or using cryptocurrency. This residential property is perfect for subsequent rental. Don't miss the opportunity to own an apartment in the construction phase from a reputable developer! Additionally, installment payments are available, and various discounts are offered.

New residential complex "Aqua Infinity"

The new residential complex called "Aqua Infinity" is the third project by this developer. It is located in the developing area of Hurghada known as El Gamasa, just 400 meters from the sea. Apartment owners in this complex will be able to take advantage of numerous benefits.

Interesting apartment options

• Apartment with an area of 75 m²For 50,000 euros, it includes three rooms and two bathrooms. A special online viewing and the option to conduct the transaction remotely make the purchasing process as convenient as possible. The apartment is located in a green area, just a 15-minute walk from the beach, which significantly enhances its appeal.
• Apartment with an area of 28 m²for 45,760 euros, located in the newly built complex "Siberian Tower 5". This project is a continuation of the successful "Siberian Towers" series. All previous buildings have already been constructed and are inhabited, which provides additional guarantees of reliability.
• Apartment for 47,130 eurosA 70 m² apartment with two bedrooms and its own land plot. It is located on the first floor in the Mubarak-11 area, just a 10-minute walk to the public beach. There are shops, supermarkets, and educational institutions in close proximity.
• Apartment for €47,130 with an area of 52 m², conveniently located next to the Karkusha store. This is the perfect place for tourists, with easy access to the waterfront and medical facilities.
• Studio for 51,730 eurosThis 23 m² apartment is perfect for those who love coziness. It is a small apartment in a green complex, newly located in the center of Hurghada, in the El Hadaba area, where all the necessary resources are nearby: supermarkets, restaurants, and banks, and the nearest beach is just a 10-minute walk away.

Advantages of buying real estate in Hurghada

Each of the aforementioned proposals opens up wonderful opportunities for comfortable living and investing in an actively developing market. Hurghada attracts more and more tourists and investors every year, making local real estate an interesting and profitable investment for the future.

Thus, you not only get a ready-to-rent or personal living space, but you can also be confident in the preservation and growth of your capital due to the stable demand in the real estate market in Egypt.

Introduction

In Hurghada, located in sunny Egypt, there are many attractive housing options available. One interesting offer is an apartment in the Sunresidence complex, priced at just 173,000 euros.

Description of the accommodation

This spacious area of 82 square meters includes three rooms, two of which are intended for sleeping. The residence has already been renovated and is located in the El Ahiya area. This offer is unique in that the transaction can be conducted remotely, and payment is available in both rubles and cryptocurrency.

The next option

Another interesting option is offered by the company Idealhome – a compact apartment priced at 632,000 euros, with an area of 28 square meters, located within the Sheraton area in Hurghada.

Apartment characteristics

• Built in 2011.
• It is located on the third floor of a five-story building.
• Includes a studio with a bed, bathroom, and kitchen.
• The windows overlook the pool.
• Fully furnished.

Security is provided around the clock, creating a comfortable living environment. There is a public beach nearby, as well as convenient access to the airport, which makes this accommodation particularly attractive.

Apartment from Noa Real Estate Egypt

There is also another offer from Noa Real Estate Egypt. A cozy apartment with an area of 40 square meters is priced at 632,000 euros and includes one bedroom. This property is located in the suburbs of Hurghada, in the El Ahyaa area.

Advantages of living

• There are supermarkets and bakeries nearby.
• There is access to vegetable shops.
• Three international schools are operating.
• The walk to the sea takes no more than ten minutes.

The kitchen of the apartment is stylishly designed, creating a comfortable living space.

Another apartment from Sunresidence

Additionally, we can consider another apartment from Sunresidence priced at 368,000 euros. This small and cozy residence has a total area of 44 square meters with one bedroom, located in a modern residential complex in the developing area of Hurghada, El Ahyaa.

Infrastructure and amenities

• Supermarkets are within close distance.
• Fruit and vegetable stores.
• Medical institutions.
• International-level schools within walking distance.

Thus, it is a great place for family living or temporary vacation.

Spacious apartment from Sunresidence

There is also a more spacious apartment from Sunresidence for 552,000 euros, with an area of 65 square meters. This property has three rooms: two bedrooms and a living room.

Amenities and infrastructure

The apartment is located on Sherri Street, on the fourth floor, which provides easy access to all the infrastructure of the area, including shops, restaurants, and pharmacies. The presence of all these amenities makes this housing an ideal place for comfortable living.

Financial opportunities

As for financial opportunities, the lending system in Egypt for foreigners is not as developed as in other countries. Only certain categories of citizens can apply for a loan:

• Legal entities registered in the country.
• Citizens and permanent residents of Egypt over 21 years old with verified stable income.

However, foreign buyers can take advantage of the installment plan offered by the developer, which is often available interest-free until the construction is completed. For already finished apartments, an installment plan is also possible, which significantly simplifies the process of purchasing a home.

Conclusion

These apartment options represent excellent investment opportunities in Hurghada, offering all the necessary conditions for comfortable living and relaxation.

Conclusion

In conclusion, purchasing real estate in Egypt for foreign buyers is a process that requires careful consideration and understanding of local laws. I hope this article has provided you with a clear understanding of the rights and obligations you have, as well as the nuances of the types of ownership available to foreigners.

It's important to remember that depending on the region, the rules may vary: while in the Sinai Peninsula you may be offeredlickholdIn Hurghada, opportunities for a full-fledged experience are opening up.freeholdEach of these formats has its own advantages and disadvantages that should be carefully evaluated before making a choice.

Real estate search

Another significant aspect is the search for real estate. Using reliable online resources and working with trusted realtors will greatly simplify the process. I recommend always double-checking information about the agents and companies you collaborate with to avoid unpleasant situations.

Step-by-step procedure of the transaction

The step-by-step procedure of the transaction, starting with the booking and signing of the preliminary contract, emphasizes the importance of attentiveness at every stage. Filling out all necessary documents and adhering to the rules regarding visa acquisition and limitations on the number of properties will be your allies on the path to a successful deal.

Important tips

• Check the reputation of realtors and agencies.before the start of the collaboration.
• Keep an eye on changes in the real estate market., as rules and prices may change.
• Be careful when signing documents.and follow all the lawyer's recommendations.

Finally, don't forget to keep an eye on the real estate market in Egypt, as changes in regulations and prices can significantly impact your investment plans. I hope this information is helpful to you, and I wish you good luck in your search for the perfect home on the Red Sea coast!