Are you interested in the property for sale in Egypt? As a foreigner, now investing in real estate is easier than ever with the best property finder in the UAE: PayMeHere. Read more.
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Foreigners seeking real estate investment prospects are drawn to Egypt by its magnificent monuments, rich cultural past, and hospitable people. Still, it’s not always easy to navigate the nuances of purchasing real estate abroad, especially regarding the many rules and laws in place. That is the purpose of this guide: to assist you in getting acquainted with the best and one-of-a-kind global property finder! In this simple and easy-to-understand guide, we will show you everything you need to know about the Egyptian real estate market while sitting in UAE. So, as one of the best real estate companies in Dubai, let us show you how it’s done.
Buying Property in Egypt As A Foreigner
When you’re a foreigner looking for property for sale in Egypt on our platform PayMeHere, you’ll have to follow a different set of restrictions than the locals. To assist you in understanding the procedure and criteria, below is a complete guide.
How Many Units Can Foreigners Buy in Egypt?
Real estate in Egypt may be purchased by foreigners, subject to certain regulations. Foreigners are typically barred from buying agricultural land in Egypt. Egyptian real estate offers a wide variety of residential and commercial properties to foreign customers. Regarding the nature of property, local law imposes almost no limits. The primary regulation is that foreign nationals do not have the legal right to own real estate over four thousand square meters in size. In addition, no one may possess more than two units.
How Is the Government Involved?
Egypt requires government involvement in property purchases. After selecting a property for sale in Egypt, the Council of Ministers must approve. Foreigners purchasing real estate in Egypt are not required to meet any particular minimum investment criteria.
Do You Need To Be In Egypt To Complete The Buying Process?
Buying property in Egypt from afar is no easy feat. According to several real estate agents’ experiences, this is how most sales are closed. A taukil and a sales contract are the two pieces of evidence required by law in this jurisdiction to establish ownership. They may be granted even if the customer isn’t physically present.
A buyer must contract with an intermediary, such as an agency, to finalize a distant transaction. The data of a legal entity may be included in this document so that funds can be transferred via a bank.
Things To Consider Before Buying A Unit In Egypt
The following are the primary measures to consider before buying a place to verify its legitimacy and quality:
- Before you can pick the best unit for your needs, you need to look at a multiple options. Once you’ve decided on the perfect apartment, you can begin buying.
- Examine the home’s construction date, current state, neighboring services, associated amenities, and maintenance history.
- Verify that all essential services, including power, water, sewerage, and landline phone lines, are available.
- Verify that a competent authority issues construction licenses and that the acquired unit does not infringe on state property. To prevent the property from being subject to any future removal orders, it is important to confirm the number of approved floors in the case of apartment buildings.
- Check the property’s real area rather than depending on the building’s engineering design.
- Verify if a policy is in place to maintain the property over time.
- Figure out extra expenses like insurance, taxes, monthly maintenance fees, and utilities.
- Look into the real estate developer’s track record to ensure they’re reputable. You can do this by looking at their completed projects and making sure they are of high quality.
Steps of Purchasing Property in Egypt
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Booking a property, negotiating a preliminary contract, and finally, buying and registering the property are the three steps that make up the Egyptian real estate acquisition process. Now, we’ll examine each step more closely:
Booking and Signing Initial Contract
A deposit is required to reserve a home in Cairo or any other area in Egypt after the buyer has confirmed the property’s worth. Typically, the cost might range from $1,000 to 10% of the property’s value. The first step for foreigners purchasing a property in Egypt is to finalize a preliminary contract.
Generally, the buyer’s representatives will have complete authority over all contract responsibilities if the buyer works with real estate companies in Dubai. The intermediary business will also hold onto the deposit until the deal is formally registered.
This preliminary agreement must include the following provisions:
- The names
- Contact information
- Passport numbers of all parties involved in the transaction
- The total price of the property for sale in Egypt
- The amount to be paid in installments
- Any other terms and conditions, such as the date by which the property must be put into operation
- Any necessary quality assurance procedures.
At this point, the lawyer must examine the seller’s paperwork and determine whether the deal is legitimate. The purchaser needs a building construction permit, an authorized project, and a land title if the property for sale in Egypt being purchased is principal real estate. It is customary for sellers to provide buyers with historically genuine title documents and a taukil when doing business on the secondary market. Obtaining Egyptian real estate as a foreigner or real estate companies in Dubai requires a passport.
Final Contract and Buying The Property
The buyer and seller enter into a sales contract if the buyer makes a deposit. There are two versions of the document printed when a foreign national is involved in the transaction: one in Arabic and one in the official language of the foreign national’s country. A signature is required on each page of the contract.
Here are the key points to include in the primary contract:
- Data about the individuals involved in the deal, such as their passport numbers, email addresses, and bank account numbers
- Data about the property itself, such as its location, square footage, number of rooms, etc.
- Data on the property’s price; details regarding the repercussions for contract violations, like monetary fines
- Limitations on property for sale in Egypt use, like a prohibition on painting the balcony’s exterior or using the roof for private reasons
- Data on previous owners of the property for sale in Egypt.
You may pay for the property in cash or by transferring funds to the bank accounts of the agency or the seller. The parties agree on a payment schedule when purchasing new structures. As work progresses on a structure, the buyer makes payments. Upon completion of construction and property operation, the last payment is made.
Registration Process
In primary market deals, a taukil is granted when the buyer pays the entire purchase price, and the developer begins construction. Buyers may own and utilize their properties as they choose using this agreement. Notarization and Arabic writing are prerequisites.
In Egypt, a series of official documents is often required to register real estate with the Real Estate Registry formally. The specific paperwork needed could change from one real estate transaction type to another and from one situation to another. Typically, the necessary official papers consist of the following:
- A document confirming payment of the applicable taxes in compliance with local regulations.
- Individual identity cards for each participant.
- The certificate containing property information is acquired from the governorate’s sample register.
- The municipal register must be contacted to get a duplicate of the receipt for the payment of the property registration fee.
Additional documents:
- A title deed contract
- An initial sales contract
- A building license (in the case of contemporary properties)
- Completing all relevant real estate registration processes, including issuing identity statements, change forms, fees, and the like.
Property Taxes in Egypt
In Egypt, the price of a transaction includes not only the cost of the property itself but also the expenses associated with legal representation, notarial services, real estate agent, registration fees, and taxes. The buyer must account for the following costs before finalizing the deal:
- Registration with the local real estate department is a necessary step in completing the transfer of ownership. The Egyptian government recently changed the registration cost such that it is now proportional to the square footage of the property for sale in Egypt. You may register for as much as 2,000 EGP (about $100).
- A transfer tax of 2.5% of the property’s value is levied on real estate sales.
- Capital gains tax is considered a transaction cost since it is a tax on gross earnings. It amounts to 2.5% of the seller’s total profit in size.
Is Legal Representation Necessary to Purchase Real Estate in Egypt?
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To complete a property purchase in Egypt, it is sometimes necessary to retain the services of a local real estate agent who is familiar with the local legal requirements. The transaction Contract, which specifies the transaction parameters and is a legally enforceable agreement between the vendor and the purchaser, is an important document they can help with.
To confirm the title and find any possible legal problems or encumbrances, the Egyptian real estate agent may also assist with a Property Title Search. On top of that, they can help you get all the permissions and licenses you need, including those from the local government. Correct and proper payment of all taxes and fees, including the Property Transfer Tax and Notary Fees, as required by Egyptian law, will be ensured by them. However, there are many modern alternatives for real estate agents when you need to buy property in Egypt, such as PayMeHere.
Bottom Line
There is always a risk of transferring payments when buying overseas. The same is true for property for sale in Egypt. Moreover, finding reliable and authentic properties to buy is also an issue. With the help of PayMeHere, a unique global property finder, you can rest easy on this worry. Get your hands on the top-class real estate market with ease of payment without hefty exchange rates and other issues.
