How to Own Property in Egypt: Legal & Financial Essentials

Introduction

Egypt’s property market has emerged as one of the most accessible and investor-friendly in the region, especially for foreign buyers. Whether you’re considering a second home on the Red Sea or a long-term residential investment in New Cairo, it’s important to understand the legal rights and financial obligations that come with ownership. This guide explains how to own property in Egypt, covering key legal steps, ownership structures, taxes, and financing options for both Egyptians and foreign nationals.

Can Foreigners Own Property in Egypt?

Yes—foreign nationals can legally own property in Egypt under clear regulations designed to encourage international investment. The Egyptian government allows foreigners to:

• Purchase up to two residential properties, each not exceeding 4,000 square meters
• Own property on a freehold basis in designated areas such as Hurghada, El Gouna, Sahl Hasheesh, and New Cairo
• Transfer, rent, or resell their property without special permissions
• Pass the property on to heirs without inheritance tax

There are no nationality restrictions, but some coastal or strategic areas may require additional government review. Most real estate transactions for foreigners are conducted through developer contracts and registered with the Real Estate Public Notary (Shahr El Aqary).

Ownership Structures: Registered vs. Contractual

In Egypt, there are two main ways to own property:

1. Green Contract (Registered Title Deed)

• This is the highest level of legal property ownership
• Registered at the notary public
• Required for full legal protection, resale to Egyptians, and some residency visas
• Available mainly for ready units with completed legal status

2. Developer or Contractual Ownership

• Common for off-plan and gated community projects
• Legally enforceable under civil law
• Includes sales agreement, proof of payment, and delivery confirmation
• Used in most resort areas like Sahl Hasheesh, Soma Bay, and El Gouna

Both ownership structures are valid for foreign buyers, but it’s advisable to consult a local attorney to determine the best approach for your property type and long-term goals.

Required Documents and Legal Steps

To secure ownership, a foreign buyer typically needs:

• A valid passport (copy and original)
• Sales agreement from the developer or seller
• Proof of payment (bank transfers or receipts)
• Local tax identification number (can be issued in Egypt)
• Power of attorney if working through a legal representative

Legal due diligence is a must. A certified attorney should review the project’s licensing, ownership rights, and registration eligibility before finalizing the purchase.

Financial Requirements: Payment, Taxes, and Fees

One of Egypt’s advantages is the low financial barrier to property ownership, especially compared to Europe or the Gulf.

Payment Plans (for Off-Plan Purchases):

• Down payment: 10–30%
• Installments: 3–8 years
• Interest-free in most cases
• No mortgage or bank approval needed
• Accepted in foreign currencies (USD, EUR, GBP)

Additional Costs to Consider:

• Legal fees: 1%–2% of property value (if using legal representation)
• Maintenance fees: Typically $500–$1,500 annually, depending on compound
• Registration fees: Vary depending on contract type (minimal for developer-backed contracts)

Egypt does not charge capital gains tax, inheritance tax, or annual property tax on privately held residential units under specific thresholds.

Can Property Ownership Lead to Residency?

Yes. One of the advantages of owning property in Egypt as a foreigner is eligibility for renewable residency permits, especially if the unit is registered or its value exceeds specific thresholds.

Residency permits can be granted for:

• 1 year (basic property ownership)
• 3 or 5 years (for high-value properties or special government incentives)

Residency is processed by the Egyptian Ministry of Interior and can be renewed as long as ownership is retained.

Tips for a Smooth Ownership Experience

1. Work with a reputable developer or agent
   • Ensure projects are legally licensed and have a delivery record
2. Always use an independent lawyer
   • To verify contracts, titles, and the developer’s legal standing
3. Consider a local power of attorney
   • Especially if you’re buying remotely or cannot be in Egypt during signing
4. Understand compound rules and fees
   • Many gated communities have specific leasing, modification, and visitor policies
5. Furnish for value
   • Well-furnished units, especially in El Gouna and Sahl Hasheesh, yield better resale and rental returns

Conclusion

Owning property in Egypt is not only legal—it’s efficient, flexible, and financially accessible. Whether you’re purchasing for lifestyle, income, or future retirement, understanding the legal and financial essentials of property ownership in Egypt ensures a smooth, secure experience.

Ready to take the next step?
Explore properties on Buildix or connect with a licensed advisor for contract reviews, residency support, and legal due diligence.

Mini FAQ

Can foreigners legally own property in Egypt?
Yes. Foreigners can purchase residential units with freehold rights in designated zones and register ownership under Egyptian law.

What documents are required to buy property in Egypt?
A valid passport, signed sales contract, proof of payment, and tax ID number. Legal advisors typically manage registration and contract reviews.

Are there taxes or fees on property ownership in Egypt?
Legal fees and maintenance fees apply, but Egypt does not levy annual property taxes or capital gains tax on private residential properties.