A Guide to Buying Property in Egypt
Foreign purchasers have the right to own real estate and land in Egypt. Today the government recognises 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.
Buying property in Egypt has its own rules and processes. Once you decide on a property to buy in Egypt, you will need to pay a holding deposit to take the property off the market while contracts are drawn up. This is usually non refundable. The initial sales and purchase contract will be drawn up by the developer (which is usually in Arabic and English). Please note that legal documents written in Arabic are the only ones recognised in courts. This is a formal, legally binding contract which contains all the information about the deal, including details of the property, the total amount payable, penalty clauses etc. If purchasing off plan, the balance of funds is usualy payable in stages between signing the contract and handover of the property. The first payment is generally made once the contract is signed, which is usually within a month of paying the deposit. Once the property is complete, your lawyer will arrange that ownership of the property is transferred into your name.

Lawyers
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. Lawyers in Egypt will normally speak English and will be able to produce your necessary paperwork in Arabic, as required by all the authorities. In order to purchase property in Egypt you need to obtain a residence visa. This is something that is a formality for your lawyer to arrange, even if you don't intend spending much time in the country. One other advantage of using a lawyer is that by giving them Power of Attorney, they will be able to sign legal documents on your behalf. This can cut costs as it means you having to make one less trip to Egypt ion order to complete the buying process. If you do decide to employ the services of a lawyer, reckon to pay around £400 for them to take you through the buying process.

Fees and Taxes
To complete the purchase the buyer has to pay the equivalent of stamp duty, The sum varies, but the maximum is currently EGP 2000 (about £200) plus lawyers fees.
The buyer will also pay a small inspection and measurement fee (approx. £50).
Registration
Most Egyptian properties are not registered, as this used to be a very lengthy and expensive procedure. However, recent legislation has made the process a lot easier and there are two options relating to registration. One is to get your lawyer to resgister you as the owner of the property at the Land Registration Office. There are several restrictions with this method, one being that foreigners are only allowed to buy a mazimum of two properties in Egypt, with a maximum of 4000 m2 of floorspace between them. Also they are not allowed to sell the property within 5 years of purchase. This could be a problem if you are looking to sell the property after a short period of time.
The alternative is to register your ownership with a notary, which costs around LE 2000 (£200). This confirms your ownership, but does not add your name to the Land Registry, which means that you can buy as many properties as you like and you can sell at any time.

Currently property in Sharm el Sheikh cannot be registered fully as, property is not sold on a freehold basis, but with a 99 year lease. This lease is automatically renewed back to 99 years on the sale of your property. Should the law change, freehold will be granted to properties.

Rental Income Tax
For those with rental income greater than LE 5000 (approximately £500),
50% of the total amount is tax-free to cover maintenance and other expenses associated with owning the property. The balance is taxable on a sliding scale of up to 20%.

Capital Gains Tax
In Egypt there is no capital gains tax levied on property

Inheritance Tax
Inheritance Tax doesn't exist in Egypt

The United Kingdom enjoys a double taxation treaty with Egypt.

Mortgages
Currently there are limited mortgage facilities available to foreigners in Egypt, though this situation is due to change in the near future with the full implementation of a new mortgage law in Egypt. The best option today may to free up equity in your country of residence via a re-mortgage or an equity release scheme. In this way you will be able to purchase your property in Egypt outright. This situation is destined to change as soon as mortgage facilities become more commonplace.