Law] Buying peoperty in Egypt

Buying a property in Egypt is perceived by local companies and individuals in the field as a straightforward procedure. Nevertheless, as a general rule, before buying any property, there are a few steps to take and issues to address in order to safeguard your investment and guarantee your peace of mind.

A deal typically starts with a private sales contract between the buyer and the seller. The buyer would take this contract and register it through the real-estate department and the notary public. Registration fees were originally 3% of the property value. However it is deemed that over 80% of property in Egypt is unregistered due to owners avoiding this hefty cost. That is why the government has reviewed this fee making it a maximum of LE 2,000 (*around Euro 250) based on the property area.

When buying a pre-owned property you must check the registration, mortgage, and tax status of this property, as this information will not appear in the property’s title deed.

A lawyer or solicitor specialized in the real-estate sector will carry out the aforementioned procedures in exchange for a fee. RealEstateEgypt can recommend such professional law firms if you so wish.

If you are the first owner of a property like a house within a new development or buying a property off-plan, above concerns will not apply. However make sure that the land is registered by the developer. A copy of this registration document is typically enclosed with your sales contract.





Property tax in Egypt is a favorable point. There is no capital gains tax, no inheritance tax and no stamp duty. However, the new real-estate boom in Egypt is in its infant stages. A new property tax law that was approved by the parliament states that properties under LE 500,000 (Euro 62,500) will be exempted, yet those with values above this amount will be subject to an annual tax depending on location, surrounding infrastructure, and so on. Authorities are currently in the process of placing fair values on such properties throughout the country. For example a house valued at LE 1,000,000 (Euro 125,000) will be subject to an annual tax of somewhere between LE 650-2,500 (Euro 81.25-312.5) A new tax scheme will also be imposed on units yielding annual rental returns higher than LE 6,000 (Euro 750). This taxation will amount to 10% of annual rental value, upon deducting 30% of that value for residential units and 32% for non-residential units, as maintenance and other costs.