Buying Process

The legal procedure

All legal paperwork relating to the purchase of Egyptian property is written in Arabic, but most lawyers in the country speak English and many are happy to provide copies of contracts in English.

As Egypt has a complex real estate registration system, it is essential that you instruct your own lawyer to handle the sale and conduct searches. Jet2Let can recommend a professional who is experienced in both British and Egyptian property law, local to the area in which you are buying. Local knowledge of regional customs when practicing business can be invaluable in smoothing the purchasing process, particularly during Ramadan or other religious festivals when business hours are shortened.

Buying a new property

Reserve a property after speaking to our sales team to reserve the property and supply a reservation deposit (usually around £1,000). This fixes the sale price from date of reservation.

You will then receive a private purchase contract in English and Arabic and you will be presented paperwork relating to the property's title, boundaries, planning permission and building license. You will be provided with a list of recommended INDEPENDENT lawyers for you to contact.

Once contract is signed then the first instalment is paid.

On completion of the development the property can be registered at the Egyptian land registry in the name of the new owner. 

Fees and Taxes

Property in Egypt is NOT subject to inheritance, VAT or capital gains taxes.

Property registration is 3% and stamp duty adds a further 3% to the price plus legal fees of approx £1,000. Buyers also have to pay a small inspection and measurement fee, but this is nominal at around 65 Euros.

Rental income from their new property tax will be liable to 20-22% taxation on any income from property over LE 5,000 per year.

When selling, a tax is chargeable at 2.5% of money earned from a sale and it must be filed as tax owed by April 1st of that tax year. The only exception is income from the sale of inherited land, which is free, as is any income earned from the sale of land or other real estate you own through a shared capital company, provided you keep your shares in the company for at least five years after the sale. 

Registration

Registration fees have now been reduced to 3%

If the development you are buying is being built on 'new' land that will have only been previously owned by the government, you can be sure that there will be no lien on the plot or the property. In this case buyers of any sole development will receive the Title Deed immediately.

Those purchasing into a larger development of multiple apartments or properties should note that they may not be able to carry out Title Deed registration until the last property is completed.

Independent legal assistance in liaising with the Real Estate Registration Office in Egypt is essential to ensure the property is duly registered and prepared for foreign purchase.

Registration can take up to four months and after inspections and payment of all due taxes and fees, you will be able to get a new title deed from the Registry.