Excel Property Bulgaria

Egypt

Country overview

Egypt has long been known as a tourist destination but now a recent explosion in water sports holidays is fuelling a property boom, especially along the Red Sea coast, and British buyers are grabbing a slice of the Egyptian action in their droves. Red Sea properties are by far the most popular amongst foreign house hunters and this has been reflected in impressive house price increases.

• Population: 78,900,000
• Capital: Cairo
• Approx. exchange rate: £1 = 11EGP (Egyptian Pound); €1 = 7EGP
• Visas: Yes, visitor visa and renewable twelve-month work visa
• Time difference: +2 GMT
• Flight time from UK: 5 hours
• Major airports: Abu Simbel, Alexandria, Aswan, Borg el-Arab, Cairo International, Hurghada, Luxor, Sharm el-Sheikh
• Dialling code: 00 20 (+20)

Climate: The climate is good all year round with the North Coast and delta regions influenced by the Mediterranean climate and subtropical climate in the south. The long hours of sunshine and an average daily temperature of 21.9C (Cairo) makes it the perfect destination for sun seekers.

Accessibility: Its popularity as a tourist destination means that there are regular flights from the UK to Egypt, less than 5 hours flying time from most of Europe.

Why invest

More overseas buyers are already purchasing in the country. The Egyptian real estate sector has recently experienced a substantial growth, partially stimulated by relatively strong demands from expatriates and foreign nationals to purchase properties in Egypt. Traditionally, the overseas property market in Egypt has been concentrated in and around El Gouna, a resort about the same size as London located on the Red Sea coast some 600 kilometres south of Cairo, the capital.

Property prices have already gone up in the past 12 months as have land prices – by as much as 60 per cent in some areas. Prices are expected to grow by around 15 per cent in the coming months as Egypt starts to become better known in property circles.

Legals and Taxes

Buying property in Egypt is a straightforward affair provided you employ a lawyer to sort out an otherwise complex system of property registration.

Foreign purchasers have the right to own real estate and land in Egypt. Today the government recognizes the great value foreign investors in property have for the success of 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. For example, the government can no longer impound or nationalize any property they wish – a practice that stood for centuries. These changes, along with a few others, are increasing confidence amongst overseas buyers.

Once you decide on a property, you will need to pay a holding deposit to take the property off the market while contracts are drawn up.

Lawyers

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. Local lawyers will also help you through the best way to conduct business with the local people who have their own particular idiosyncrasies and customs which are important to be aware of.

Fees and Taxes * Property registration and legal fees for conveyance total around 6%. * 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). * 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.

Registration

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.

Please contact us if you need further information!