• Facebook
  • Google+
  • youtube

Property Buying Process in EGYPT for Foreign Citizens

Legislative base of Egypt, which regulates the procedure for purchase of real estate by foreign nationals and protects their rights on property, includes several basic laws of Egypt and decrees of the Prime Minister:
Law №230 (1996), "On the rights of foreign nationals to purchase real estate in the territory of Arab Republic of Egypt".
This law was approved by the President of Arab Republic of Egypt from 14.06.1996, the 28th day of the Islamic month of Safra 1417. In accordance with Article 1 of this Law, foreign nationals, both individuals and representatives of companies have every right to buy real estate in Egypt: Apartments buildings, land. Law regulates the procedure of buying real estate by foreign citizens and to declare a guarantee on behalf of the state to protect the interests of foreigners in their own country. In respect of land plots, there are restrictions - are not subject to the sale of land agricultural areas (Law Arab Republic of Egypt №1939.). In addition, some land on the peninsula of Sinai and cannot be sold to foreigners, and can be transferred to for long term rent. In Hurghada and other Egyptian cities are social housing estates, some of which are restricted for sale to foreigners in order to prevent speculation in low-cost real estate (1-Mubarak, Mubarak 5, Mubarak-8).
In accordance with Article 2 of this Law, a foreign citizen, as an individual, with the full procedure of registering property (getting "Certificate of ownership of property" can’t buy more than 2 objects for personal use. Each one of purchased real estate objects must not exceed an area of 4,000 sq.m. If a foreigner bought a plot of land, within 5 years, it should be completed property. Under shortened registration (registration of contracts of Sale Real Estate before the Court) the number of objects is not limited.
Article 3 of the Law №230 of 1996 regulates the rights of registration in the notarial offices of the Ministry of Justice. In accordance with this Law, the right to property must be registered no later than 10 days after the fact of the transaction (the General Power of Attorney for full ownership of the subject property). To obtain a certificate of ownership of property for foreign citizens is a specialized department of registration of ownership of the Ministry of Justice.
Law number 8 "On guarantees of rules and development investments" from 11.05.1997.
The law establishes guarantees for foreign companies and business owners in the tourism sector, investing in the construction and operation of hotels, apartment hotels, motels, and companies providing services to tourists.
 Head of the cabinet decree number 548 of 2005 "The procedure for acquiring real estate and obtaining residence permits for foreign nationals (not Egyptians)"
Regions of Egypt, where allowed to buy and sell foreign nationals properties:
- The tourist center of Hurghada (Hurghada, Makadi, Sahl Hasheesh, El Gouna) - a region defined by the Decision of the Minister of Tourism Arab Republic of Egypt number 113 of 1981
- Red Sea Province - all over the province from the province of Suez to the southern border of Egypt with North Sudan. The main resorts of Hurghada, El Gouna, Sahl Hasheesh, Makadi, Soma Bay, Safaga, El Quseir Port Ghalib, Marsa Alam, and Berenice. Region is open to Sale Real Estate to foreigners in 1982, decision of the Minister of Tourism Arab Republic of Egypt №175.
- Tourist locations on the Mediterranean coast - Ras al-Hikma and Marsa Matrouh. (1986, decision number 105); Sidi Abd Alrahman - an area about 100 km from Alexandria and near the town of El Alamein.
Law №196 «On taxes on immovable property" from 2008
In accordance with this Law and its refinements and modifications of 2013, tax exempt person who owns property valued at less than 2 million EGP. If the property is valued at 5 million EGP, the owner is required to pay an annual government tax in the amount of 3,500 EGP (approximately $ 500 as of course in the autumn 2014).
If you are buying a property the new owner has not been registered with the tax authority, it can be subjected to a fine of about 2,000 EGP.
Real estate agency M & M Group provides its customers with the purchase of real estate services on registration with the tax authority of Hurghada, registration card taxpayer and other procedures.
Now Egypt is on the rise economic development. For the implementation of large-scale projects require investment, increased inflow of foreign currency into the country. This applies not only to large investment projects, such as the Suez Canal or regional logistics center uniting the whole of northern Africa, southern Europe and the Middle East, but also the creation of additional conditions for the purchase of holiday homes by foreigners.
Overseas Property in Egypt, Hurghada, Sahl Hasheesh and El Gouna willing to buy residents from Germany, UK, Ireland, Poland, Slovakia, Italy, Saudi Arabia, Russia and other countries.
Steps to purchase can be represented by the following main stages and steps.
The preliminary stage (based on natural, ethnic, pricing, cultural and other preference):
1.    Select Country - (Other countries) and Egypt - Select Resort (Hurghada, El Gouna, Sahl Hasheesh and other cities.). Criteria: price, taxes when buying and selling, registration fees, utility bills, cost of living, the order of legalization, visa restrictions for foreigners, terms of registration, insurance transaction, order the transfer of funds, the cost of services of realtors, etc. Communications: Websites, brochures, exhibitions overseas real estate.
          Communications: Websites, brochures, exhibitions overseas real estate.
2.The choice of the type of property in the selected city (villa, house, apartment in a residential complex) Criteria: matching purpose object purchase (for a short rest, permanent residence for a large family, business, etc..), the level of comfort, price, distance from the sea, neighbors, infrastructure, and related services, area, readiness, secondary or new housing, etc...). In the province of the Red Sea all notary and registration activities are carried out in Hurghada.
3. Selecting a real estate agency.
This step is very important when buying a property in a foreign country. Decision when choosing the agency must take a balanced and carefully, paying attention to all small "stuff" in the work and the company's image. The right choice - protect you from trouble and "scam", which, unfortunately, are present on the Egyptian real estate market.
Criteria: experience in the real estate market, customer reviews, professional managers, compliance with the State Agency of advertised services and the level of service, banking loyalty, willingness to insurance transactions, the quality of documentation - standard contracts for at least 2 languages to confirm the identity of the translation, advertising products, the volume of the customer base and the base of real estate, interior and office equipment, its location is used in the company's trucks for customer service, cost of service, the level of knowledge of local laws, the presence of professional lawyers, etc.
Expected result: choose a reliable assistant for buying property in Egypt.
4. Selection of the property
Criteria Factors affecting the price: distance from the sea, the presence of sea view, a remote beach, available for use, the area of the city, floor, square meters, number of bedrooms, completeness and quality finishes used in the finishing of construction materials. If the apartment or villa is located in a residential area, the tourist village, equipped with swimming pools, private beach, gardens, playgrounds for children and sports, shops, restaurants, internet, TV, etc., the price for such housing is formed with a tailored service. It is necessary to immediately pay attention to public services provided by the management company, especially in the cost of water and electricity. Some of them unnecessarily inflate. If you plan to stay a child, you should evaluate the location of the kindergarten and school. For remote districts from the center it can be a problem.
Selection of the property - difficult and lengthy procedure because in Hurghada huge number of proposals. Need to find an object that would be fully consistent with the objectives of your real estate purchase (recreation, accommodation, rental, commercial purpose, and others.) your financial possibilities, your preferences and your idea of comfort living and leisure.

M & M Group - Your reliable guide and assistant in choosing the property in Hurghada, El Gouna and Sahl Hasheesh!

The main stage - Buy real estate and Legal registration TRANSACTIONS
I. Signing a contract with a real estate agency to provide a range of services, including trip to select an object; legal support; organization of notarial services and passport and visa service; preparation of the sales contract, its translation into the languages of the buyer and seller, the organization of meetings with the owner of the property or his agent; participated in the signing by the parties of contractual documents; to assist in the calculation through the bank, transferring money; Legal Confirmation of the "purity of the object"; supervise the work of the trustee at the time of the transaction documents in the local registration and accounting; statement of the new owner of the real estate on the tax account, registration of the electricity in the energy companies, etc.
Result: You are not alone in a foreign country; you will get help, agents will communicate with you in your language (or with translator). You have a service contract which outlines the terms of service and mutual obligations, costs and timing of services.
Note: Some of these services may apply.
II. Getting a visa in the passport and visa service of the city (Hurghada, Dahar, Helal, El Helal Society Street). Visa is permissive for entering into any transactions. The cost of the visa fee about 2 dollars. To get a visa is needed a copy of the passport of all pages, picture 4,3x3,5. Validity of the visa 1 month. Real estate agency allocates representative of the company, translator and transportation.
Result: You can officially within a month make a real estate transaction in Egypt.
III. Purchase and Sale of the property:
- Meeting with the seller of real estate, the parties signing the sales contract;
- Calculation of the seller of real estate;
- Calculation with real estate agency (3-5% of the purchase price under the Agreement) or the amount of space in the depository bank or under Agency safeguards;
- Buyer getting from the seller of the real estate Taukil (General irrevocable power of attorney for property ownership). Taukil can not be withdrawn or modified by the seller. Issued with full calculation of the parties. The primary document certifying the right of tenure. If there are Taukil an object can be sell, donate or inherited, valid from the date of issue to the new owner.
Result: From this moment buyer becomes the owner of the property he purchased.
IV. Registration actions
- Power of attorney for the right to a lawyer representing the interests of property owners in the local registration and tax authorities. Issued in the notary office. Registration fee -70 L.E. If the Agreement includes 2 owners, the cost of power of attorney about 100 LE
 Note: The power of attorney issued by a lawyer does not give any property rights. Implementation of resale real estate on this notarized power of attorney can’t be!;
Hurghada is currently working two notary offices (Shar Al Akari) - one on the street «Stadium» in the central Dahar, El Wafaa District, and the second in the area of Hafr Al Batten.
The result: you get rid of the need for personal attendance at meetings of the Court, upon delivery and receipt of the documents to the court. For you it makes a trustee. You have saved their time and nerves.
- The state registration of the contract of sale in the department of registration and control of the local court. Contract (one of the originals) delivers a lawyer under power of attorney or the owner personally. Pay the registration fee (amount to be confirmed at the transfer date contract in court). Registration Department on the basis of the resulting contract sends requests to the banks and courts in the country, notifying them of the new treaty on the property. If you find that the object is in the banking pledge or a claim other relatives of the former owner, the Agreement shall be canceled, and the sellers require the due date to repay the amount of the contract and court costs. Court of Justice ("Mahkama") in Hurghada is located in the administrative part of the city, near the city market Dahar: Hurghada, Dahar, Abdel Aziz Mustafa Street.
Result: Obtaining the sales contract from the registration department of the court and its transfer to a new owner, you - the buyer. Now you can register the property in the state register, register a water meter, electricity, buy a car, get a visa to live, etc.
Registration step can last from 6 months to 1 year. During Phase lawyer several times can be called to the meeting as a representative of the new owner of the property.
ATTENTION: About 50% of property owners complete the registration process of the property because with registration all their rights are protected.
V. Registration of real estate in the State Registration Chamber. Preparation of Green-contract - a "Certificate of ownership of real property"
In accordance with the Law of Egypt №114 of 1964 "certificate of ownership of immovable property" is a document confirming ownership of the property. The color of the seals on the certificate (green) is popularly became known as the "Green-contract". The presence of green contract for real estate valued at more than $ 50 000 entitles the holder to receive resident visa in Egypt (it can be canceled if during the year, foreigner has not been in the country more than 180 days.). The procedure for obtaining the Green contract is expedient to pass with the purchase of second homes, when the history of ownership of the property involved, and it has any doubts. In addition, with the purchase of expensive housing - villa or mansion for additional guarantee this form of real estate registration you should pass.
For green contract necessary:
- To collect a set of engineering drawings;
- Assure the documents in the notary's office (contract of sale, a certified copy Taukil, set of engineering drawings, a certificate from the tax authority);
- Send by mail a package of documents in the Ministry of Justice, Department of registration ownership of foreign citizens;
- Getting "Certificate property right to real property" may be a period of several months to several years. This is due to the lack of a unified electronic database in the country for real estate and the sluggishness of the bureaucracy.
To save time and effort for a reasonable fee, you can hire a lawyer to carry out registration procedures for obtaining Green contract. Lawyer and lawyers are provided M & M Group. As part of M & M Group has qualified lawyer whose services you can use (paid service).
VI. Additional registration actions
- During the tenure owner will meet with the need to filing the tax authority and registration in it. This should be done immediately after the purchase and sale of the registration process of the Treaty in court. 
- Registration of the purchased property in the local tax authority of Hurghada, registration card individual taxpayer filing declaration. WARNING: Failure to register with the tax authority may result in a fine of 2,000 pounds, while a second violation for tougher measures and sanctions.
- In addition, you may need to register the electricity in the electric company ("Shirka Kahraba");
- Registration the water meter to the house, mansion, villa to the city's water supply system ("Shirka Maya"). For owners of apartments in an apartment house registration of the water meter for the whole house is held before commissioning or all tenants (if there was no connection).

M&M Group Consultants help you

Page 1 of 5