Egypt opens doors to foreign buyers

Egypt Opens Doors to Foreign Real Estate Investors

In recent years, Egypt has been working hard to attract foreign investment and develop its economy. One of the key areas in this strategy is to stimulate the sale of real estate to foreign nationals. The Egyptian government has decided to make this sector a priority part of its public policy by removing restrictions for foreign buyers and offering attractive conditions for investment.

Until recently, there were restrictions on the purchase of real estate by foreigners in Egypt. They limited the number of properties that could be purchased and set limits on the area. However, from July 2023, these restrictions were completely lifted. Now, foreign nationals can buy any number of properties in Egypt without any restrictions on the area or number. This significant policy change opens up a wide range of opportunities for investors from all over the world. It allows Egypt to become a more attractive destination for foreign real estate investment and strengthen its position in the international investment market.

Opportunities for Foreign Investors

• Thanks to the new policy, any foreign national, regardless of their nationality, can purchase real estate in Egypt. To do this, it is enough to have a valid passport and the appropriate visa. The process of buying real estate in Egypt is quite simple and does not require registration with the tax office or opening a local bank account. Moreover, buying real estate in Egypt gives foreign citizens the right to obtain a temporary resident visa for up to 6 months. This visa can be subsequently extended for up to 5 years. Thus, investing in Egyptian real estate not only allows you to obtain property abroad, but also gives you the opportunity to live in the country for a long time.
• One of the most significant advantages of investing in Egyptian real estate is the opportunity to obtain citizenship. With an investment in real estate in excess of US$ 300,000, a foreign citizen can apply for Egyptian citizenship. This makes Egypt extremely attractive to those investors who are looking to obtain a second citizenship and improve their opportunities for international travel and business.
• Real estate in Egypt, especially in such popular tourist destinations as the resorts of Hurghada and Sharm el-Sheikh, is valued for its affordable prices and prospects for the development of tourist infrastructure. Investments in these regions can bring significant profits in the long term, given the constant growth of tourism in Egypt. However, it is important to note that in the Sinai Peninsula, including Sharm el-Sheikh, foreigners are only allowed to purchase real estate on a long-term lease for up to 99 years. Despite this restriction, the possibility of long-term lease is still of interest to many investors.

Tax policy and costs when buying real estate

• Egypt's tax policy is relatively loyal to foreign real estate investors. The main costs when buying real estate include registration fees, the amount of which depends on the area of ​​the property, and a realtor's commission, usually around 4% of the transaction amount. The property transfer tax in Egypt is 3% of the property price, but it is paid by the seller, not the buyer. This reduces the financial burden on foreign investors when purchasing real estate.
• As for the annual property tax, it is calculated based on the estimated rental value of the property. However, most residents who own one apartment are not required to pay this tax if the property is their main place of residence. This is another advantage for foreigners who purchase real estate in Egypt for personal use.

Egypt’s Economic Benefits and Strategic Plans

The Egyptian government has high hopes for foreign real estate sales as a key source of attracting foreign currency into the country. The cabinet is already discussing the possibility of allowing real estate sales in US dollars, which should simplify transactions for foreign buyers and stimulate investment. Egypt’s strategy to encourage foreign real estate sales is part of a broader plan to strengthen the country’s economy and improve its competitiveness on the international stage. Attracting foreign capital to the real estate sector should help create new jobs, develop infrastructure, and grow the tourism industry.

To sum it up:

Egypt’s new policy aimed at stimulating the sale of real estate to foreigners opens up great opportunities for both foreign investors and the country’s economy as a whole. The removal of restrictions on the purchase of real estate, the simplification of the acquisition process, and attractive conditions, such as the possibility of obtaining citizenship with a large investment, make Egypt one of the most promising destinations for real estate investment.

Investors can take advantage of affordable real estate prices, especially in popular tourist areas, and the potential for property appreciation in the long term. In addition, purchasing real estate in Egypt entitles you to a temporary resident visa and simplifies the process of obtaining citizenship. For Egypt, attracting foreign investment in the real estate sector is a strategic step towards strengthening the economy and increasing the country’s competitiveness. The influx of foreign currency, the creation of new jobs, and the development of infrastructure are expected to have a positive impact on economic growth and the well-being of the population.