Foreign Property Ownership in Egypt: Legal Requirements Explained

Introduction

Egypt is increasingly recognized as a top destination for international property buyers, thanks to its beautiful coastline, competitive pricing, and favorable legal framework. If you’re considering foreign property ownership in Egypt, it’s important to understand the legal requirements and procedures involved. This guide walks you through what’s allowed, what to expect, and how to safeguard your purchase—whether you’re buying a beach apartment in Sahl Hasheesh or a modern villa in New Cairo.

Can Foreigners Own Property in Egypt?

Yes. Foreign nationals are allowed to own property in Egypt, including full freehold ownership of residential real estate. The law supports international ownership in key zones, especially in coastal and resort cities such as:

• Hurghada
• El Gouna
• Sahl Hasheesh
• Soma Bay
• New Cairo and Sheikh Zayed

Foreigners can typically own up to two properties in Egypt, each no larger than 4,000 square meters, and the use must be residential. Commercial ownership and land purchase have more restrictions and may require special approvals.

Legal Framework: How It Works

Egypt’s legal system supports property rights for both Egyptian citizens and foreign nationals. The legal purchase process for foreigners includes the following steps:

1. Reservation Contract
   • Buyer selects a property and signs a reservation agreement with a deposit (usually 5–10%).
2. Purchase Agreement
   • A full contract is signed detailing the unit, price, payment plan, delivery schedule, and conditions.
3. Title Registration (Green Contract)
   • If the unit is in a registered project, the buyer may register the title at the Real Estate Public Notary.
4. Legal Due Diligence
   • A local lawyer verifies ownership status, title clarity, developer credentials, and contract compliance.
5. Registration Alternatives
   • In cases where title registration isn’t available (e.g., off-plan or under-construction projects), buyers receive legally binding developer contracts recognized under Egyptian law.

What Documents Are Required?

To complete a property purchase in Egypt as a foreigner, you typically need:

• A valid passport (copy and original)
• A tax identification number (can be issued in Egypt)
• Proof of funds or bank documentation (depending on project/developer)
• Signed reservation and sales contracts
• Power of attorney (if your lawyer is completing the purchase on your behalf)

All contracts should be issued in both Arabic and English for clarity and compliance.

Title Deed and Green Contract Explained

The Green Contract is Egypt’s official property registration document and the highest form of ownership proof. It provides:

• Legal protection in case of disputes
• The ability to sell, lease, or transfer ownership
• Residency application eligibility

However, not all projects (especially off-plan) are eligible for immediate green contract registration. In these cases, the developer’s contract is considered enforceable and serves as proof of ownership.

Residency Benefits for Property Owners

One of the main advantages of owning property in Egypt as a foreigner is the ability to apply for a residency permit, especially when owning registered or developer-backed units.

Residency may be granted for:

• 1 year (renewable)
• 3 years (for higher-value properties)
• Up to 5 years in some cases

Residency is processed through Egypt’s Passports, Immigration, and Nationality Administration, typically with support from your lawyer or real estate agent.

Taxation and Inheritance

Egypt does not impose property taxes on private owners in the same way as many Western countries. Key points include:

• No capital gains tax on resale for individual owners
• No inheritance tax
• Rental income tax may apply if property is leased commercially
• Annual property maintenance fees may be due to the compound or developer

Legal heirs can inherit property in Egypt, but it’s advisable to consult with a local attorney to establish wills and succession plans.

Common Pitfalls and How to Avoid Them

To ensure a safe and successful property purchase, avoid these mistakes:

• Buying without legal review of contracts
• Failing to verify developer credibility
• Overlooking registration status of the property
• Using unofficial payment channels
• Skipping the translation and notarization of documents

Working with reputable developers and local legal counsel is essential to avoid complications.

Conclusion

Foreign property ownership in Egypt is straightforward and well-supported by national legislation. With the right legal guidance, international buyers can enjoy full ownership rights, affordable pricing, and the added benefit of residency. Whether you’re investing in a beachfront unit in El Gouna or a modern home in New Cairo, Egypt offers a secure and welcoming environment for foreign homeowners.

Start your journey today.
Explore Egypt’s best properties on Buildix or speak to a legal advisor to begin the buying process with confidence.

Mini FAQ

Can foreigners own property in Egypt?
Yes. Foreign nationals can own residential properties in designated areas and are eligible for title deed registration or developer-backed ownership.

What documents are needed to buy property in Egypt?
Passport, sales contract, tax ID, and proof of funds are typically required. A legal advisor helps verify and complete the transaction.

Do foreign property owners in Egypt get residency?
Yes. Owning a property can qualify a foreign buyer for a renewable residency permit, usually valid for 1 to 3 years.