The Legal Process of Buying Property in Egypt: 2025 Guide

Buying property in Egypt—whether for personal use, investment, or as a holiday home—can be a smooth and secure process when you understand the legal framework. For both Egyptian nationals and foreign buyers, there are clear steps and legal protections in place to ensure property rights are upheld.

This 2025 guide outlines the legal process of buying property in Egypt, including what documents to prepare, how to verify ownership, and how to register your property legally.

1. Can Foreigners Legally Own Property in Egypt?

Yes. Foreign nationals are allowed to own up to two residential properties in Egypt, each not exceeding 4,000 square meters, according to Egyptian law (Law No. 230 of 1996 and Ministerial Decree No. 548 of 2005).

Ownership is allowed in key resort areas such as:

• Hurghada and the Red Sea coast
• Cairo and New Cairo
• Alexandria and the North Coast
• Luxor, Aswan, and other tourist destinations

Foreigners can own freehold property, and in some cases usufruct rights (99-year leaseholds), especially in designated zones or specific developments.

2. Legal Steps to Buying Property in Egypt

Here’s a simplified overview of the typical legal process for buying real estate in Egypt:

Step 1: Choose a Reputable Property and Developer

Before committing to any transaction, ensure the property is:

• Located on legally registered land
• Developed by a licensed developer
• Free from mortgages, debts, or inheritance disputes

A local real estate lawyer can verify these details through the Land Registry or relevant courts.

Step 2: Sign a Preliminary Reservation Agreement

Once you’ve selected a unit, the developer or seller may offer a reservation agreement. This holds the property for a short time while you review the full sale contract.

Typical reservation deposit: $1,000–$5,000 (credited toward the total price)

This step is optional but recommended in fast-moving markets like Hurghada or Cairo.

Step 3: Review and Sign the Sales Contract

A bilingual contract (Arabic + your preferred language) should include:

• Full details of the property
• Buyer and seller identity
• Total price and payment schedule
• Delivery date (if off-plan)
• Registration and handover obligations
• Penalties for breach or delay

Always have the contract reviewed by a licensed lawyer before signing.

Step 4: Payment and Receipts

Payments are typically made in US dollars, euros, or Egyptian pounds, depending on the seller.

• Use bank transfers to document payments
• Request official receipts or payment statements from the developer or seller
• If paying in installments, ensure each stage is clearly documented and receipted

Step 5: Legal Registration of Ownership

This is the most important step for protecting your rights as a buyer. There are two main ways to register property in Egypt:

A. Court Validated Contract (Shahr El Aakary)

Often used for resale properties. The contract is ratified by an Egyptian court and gives full legal proof of ownership.

• Recommended for buyers who want to resell, transfer, or use the property for legal residency
• Requires seller presence or notarized Power of Attorney

B. Notarized Sale Contract (Tawkeel / Signature Authentication)

Common in off-plan or new developments. The contract is signed and authenticated by the Notary Public (Real Estate Registration Office).

• Suitable for developers building on registered land
• Grants practical ownership rights with less bureaucracy
• Often used by foreigners buying in gated compounds or coastal zones

Your lawyer will advise which method is applicable based on the property’s legal status.

3. Additional Legal Considerations

Residency Permit Eligibility

Foreign property owners can apply for a 1- to 5-year renewable residency permit by showing proof of ownership.

Inheritance & Succession

Foreign-owned property in Egypt can be passed on to heirs, but it’s advised to have a local will or consult an estate lawyer to simplify future transfers.

Taxes & Fees

• No capital gains tax currently applies to foreign sellers
• Annual property tax is negligible for most residential units
• Buyer typically pays 1–3% in registration or legal fees

4. Documents You’ll Need as a Buyer

• Valid passport (copy and original)
• Power of Attorney (if buying remotely)
• Signed sales contract
• Payment proof (bank receipts or transaction statements)
• Utility transfer documents (for ready-to-move units)
• Property registration paperwork (once completed)

Your lawyer or agent will assist in preparing and submitting these to the relevant authorities.

FAQs: Buying Property Legally in Egypt

Is it safe for foreigners to buy property in Egypt?
Yes, as long as you follow the legal process, work with a reputable lawyer, and verify the project’s registration status.

How long does the property registration process take?
Registration can take between 2 weeks to 3 months, depending on whether it’s a notarised or court-validated process.

Can I own land in Egypt as a foreigner?
Yes, in most resort areas and designated zones, subject to land size limits and use regulations.

What happens if I buy off-plan?
Ensure the developer holds the land title and that your payment schedule is linked to construction milestones. Delivery timelines should be outlined in your contract.

Final Tips for Safe Property Purchase in Egypt

• Always use a licensed real estate lawyer
• Avoid cash-only deals or undocumented payments
• Check the legal registration status of the land
• Insist on a written, bilingual contract
• Document every step for legal protection