buying an apartment in Egypt as a foreigner: a comprehensive guide for German investors

buying an apartment in Egypt as a foreigner: a comprehensive guide for German investors

egypt is an attractive destination for foreign investors, especially from Germany, due to its strategic location, affordable cost of living, and diverse investment opportunities. if you are considering buying an apartment in Egypt, here is a comprehensive guide that explains the steps, legal procedures, and requirements.

can foreigners buy real estate in Egypt?

yes, foreigners are allowed to buy real estate in Egypt, but there are some conditions and restrictions to consider:

• a foreigner can own up to two properties in Egypt, provided the total area does not exceed 4000 square meters.
• the property must be for residential use only, and is not allowed to be sold or rented out within the first five years of purchase.
• in some areas, especially near borders or military zones, there may be additional restrictions.

the legal steps to buying an apartment in Egypt

1. find the right property: select the area you want to invest in, such as Hurghada, Cairo, or Alexandria.
2. hiring a reliable real estate agent: it is best to work with a real estate agent who has experience in dealing with foreigners.
3. check the documents: make sure the property is legitimate and free from any legal disputes.
4. sign the initial contract: include details of the price, payment terms, and deadlines.
5. register the contract: the contract must be registered with the Real Estate Registry to ensure ownership rights.

required documents

• valid passport.
• a notarized sales contract translated into Arabic.
• proof of money transfer through official channels.
• real estate registration certificate from the real estate month.

taxes and fees

when buying a property in Egypt, certain taxes and fees must be considered:

• real estate transaction tax: 2.5% of the property value.
• registration fees in the real estate month.
• annual maintenance fees in some residential complexes.

tips for foreign investors

• hire a local lawyer with experience in real estate laws.
• avoid paying the full amount before receiving the property.
• make sure there is a “green contract” that proves your legal ownership of the property.
• inspect the property thoroughly and make sure of its quality and location.

frequently Asked Questions (FAQ)

can I get residency after buying a property in Egypt?

yes, foreigners can apply for a renewable annual residency after buying a property.

can I rent out the property after purchase?

renting out the property is allowed after five years from the date of purchase, unless you obtain a special permit.

can I sell the property later?

yes, but it is advisable to wait five years before selling to avoid any legal restrictions.

are there areas where it is forbidden for foreigners to buy real estate?

yes, in some areas near borders or military zones, there may be restrictions on foreign ownership of real estate.

conclusion

buying an apartment in Egypt as a foreign investor can be a successful move if you follow the right legal procedures and hire the right experts. make sure you fully understand the local laws and hire a reliable lawyer to ensure your purchase goes smoothly.