Egypt Information
Eqypt
Why invest in Egypt?
5,000 years of history. Two of the 'seven wonders of the world'. Scuba diving that is legendary. Bargain property prices. 365 days a year sunshine. Direct flights from the UK. Fantastic opportunity for capital growth. What more can you ask?
What are the steps to purchasing?
- The buyer reserves their property, off - plan or under construction and pays the reservation fee - usually £2000. This secures the property and fixes the sale price.
- The seller (developer) releases the purchase contract (in English & Arabic) and supplies documents relating to the title, boundaries & planning permission.
- When the full amount has been received by the seller the property can then be registered in the land registry in the name of the new owner.
The registration fees depend on the property size:
Property size up to:
- 100sqm: £500
- 200sqm: £1000
- 300sqm: £1500
- 1000sqm: £2000
You should budget for 5-6% purchase costs.
Can I get finance in Egypt?
If you require finance to fund your purchase then the best way currently is to release the equity from existing properties that you own. Some properties are cheap enough to fund through a personal loan. Mortgages can be arranged with banks in Egypt but the interest rates are higher than the UK.
How can I rent my property?
Once you take ownership of your property you need to think about who is going to maintain it for you. Property management services can be provided by some developers in-house. They can provide you with cleaning, laundry, key holding services and much more. There are also local companies who can assist with renting your property and online companies such as holidaylettings.co.uk
What taxes do foreign buyers have to pay?
Egypt represents a very attractive tax environment for foreign buyers. There is no inheritance tax, capital gains tax nor income tax on overseas incomes. The removal of the 'pre-emption' rules on resale within a defined period is a great boost to buying property and the facility to resell within a short space of time.
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