The procedure for purchasing property in Egypt

Information about Egypt: Geography, history, population, map, flag, visa
Foreign citizens may freely acquire in Egypt, residential and commercial property and land.

On the African part of Egypt (Hurghada) property shall be in full unconditional ownership (freehold). At Sinai (Dahab, Sharm el-Sheikh, etc.) other rules: the buyer obtains the right to long-term lease for 99 years. The prohibition on obtaining ownership of the property, acquired an alien set by Executive Order issued by the Prime Minister of Egypt in 2005.

Other restrictions on the purchase of not, except for the prohibition to acquire property for the state of protected areas, for example, in close proximity to historical monuments.


Buying a property in Egypt should begin with an introduction to the proposed sites via the Internet, special exhibitions, thematic publications, etc. You can make purchases independently, but the best solution is to use the services of a real estate agency. Call to be both of Egyptian companies in our country, or firms in Russia, selling real estate with Egyptian partners, and in the company, located directly in Egypt.

In favor of the agency says the following. First, the buyer will not have to delve thoroughly into all the legal fine points of procedure, and while there is always the risk of misunderstanding of the laws and treaty settlements. Plus does not require knowledge of Arabic. Secondly, large and reputable construction companies sell their objects only through dealers and agencies and the purchase of real estate in these companies virtually guarantees the quality of housing and safety procedures for the purchase. In addition, some agencies in Egypt working at official prices of developers without commission for their work. This is mainly for large objects on the first coastline. This means that the buyer receives additional services at no extra cost. Therefore the choice of real estate agency is an important step.

If you choose is important to remember: the agency must have a license to conduct real estate activity, as well as a document confirming that it is registered in the tax inspectorate. It is important to ask how long the agency operates in the market, who is the founder and leader, even in what is office space (serious firms can not be placed in the apartment). It should be ignored using a style of Egyptian "friends" and the hotel staff to exclude the possibility of fraud.

If the buyer is drawn to the representation of the Egyptian company in Russia, or Russia's firms that sell real estate in Egypt, through partners, him at the request may be granted a familiarization tour. Typically, it takes three to four days. This time is enough to inspect the facilities or housing projects under construction and provide the documents. Inspection Tour - objects, providing information on areas and sightseeing excursions - always free, but tickets and accommodation in the country of the buyer pays for itself.

Procedure itself, the transaction is simple enough. To do this, the buyer is sufficient to provide only a passport. Monitoring the purity of the transaction and its legal support for implementing a real estate agency, and it also bears full legal responsibility. In some state agencies have their own lawyer, who is (important) must be licensed by the Ministry of Justice of Egypt to engage in such activities. As a rule, the agency is both a lawyer and a lawyer and notary. Otherwise, the deal will need to turn to third-party notary.

You can not delete PURCHASE

If the buyer to purchase real estate is not going to come to Egypt, he can take advantage of remote acquisition. This is necessary to issue a power of attorney to a representative. Proxy may be prepared and issued only by the Embassy of Egypt in Moscow.

However, remote acquisition of the buyer is not recommended, because the photos to judge objectively the real estate is practically impossible. In addition, in the ordinary course of the transaction it should be in Egypt a few days, after which he can leave and return only after some time to complete and record the transaction.


The payment transaction can be made in cash or by bank transfer from the personal account (see below in the section "the Contract"). Restrictions on the import of foreign currency in Egypt is not provided, but should take into account the rules on its export from Russia: the permitted one-time export from Russia is not more than $ 10 thousand up to $ 3 thousand not declared at customs when exporting from $ 3 thousand to $ 10 thousand needed fill in the declaration.

Cash is the best way to calculate the transaction. Bank transfer complicates the process. If the buyer intends to open her own Egyptian account to transfer funds from his account of the seller, is worth bearing in mind that not all Egyptian banks agree to provide this service to foreigners. In Hurghada, such as this will need to deposit $ 2 thousand, though, immediately after opening the account money can be withdrawn.

Transfers from Russia to the personal expense of the Egyptian similarly complex: either by receiving money, they still have to convert into cash to pay off the Egyptian company, or later transfer to an account of the seller. In the first case, the buyer accepts unnecessary risk in a foreign country, in the second - there are additional costs to pay for banking services. When transferring funds also raises costs for the services of bank in Russia. Although, as a rule, the commission for the transfer of funds in domestic banks is set to a fixed amount and does not depend on the amount transferred.


After the object is selected, the seller and the buyer sign a preliminary contract of sale, and is an agency agreement. The preliminary contract is issued as a lawyer in two languages and contains two columns of text: one in Arabic, another in the native language of the buyer. Some companies are documentation only in Arabic, in this case, a real estate agency provides the client with translation.

In the preliminary contract prescribed rights and obligations of the parties, the transaction value. If the property is bought in a newly built facility, then additionally, the order of payment, date of completion and penalties in case of delay in delivery of the object. Items preliminary agreement is fully consistent with the basic contract (see below in the section "the Contract"), only in the section "Payment" prescribed stages of making money. Preliminary agreement assures the agency attorney and if he does not have the rights to it, you must additionally apply to a notary.

The agency agreement is between the buyer and the agency and confirm the provision of services for property acquisition. The document indicates passport details of the buyer, agency details, features and cost of the project, the responsibility of the parties. Also in its real estate agency gives the buyer a guarantee that this object is not sold to anyone, not laid on its sale is not prohibited.

Simultaneously with the signing of the preliminary contract the buyer makes a down payment. As a rule, it is enough to make a $ 1 thousand or ? 1 thousand, depending on currency transactions. However, the size of the deposit may reach 10-35% of the price of the object, it defines the developer or owner. Payment is usually made in cash. The introduction of the deposit means that the facility is reserved for the buyer, and now nobody else can buy it. Return of deposit in case of failure of the transaction in advance stipulated in the preliminary contract. For example, it can be ascertained that in the event of breach of contract by the seller / developer, he pays the buyer the full value of the object and compensation in the amount of 50 thousand Egyptian pounds (hereinafter - e. ?.), Is about $ 9 thousand A similar amount may be appointed in penalties and the buyer, if the deal he refuses.

Purchasing process can be carried out without signing the preliminary contract of sale. Then, when paying the deposit directly is the main contract. However, this depends on the conditions of a specific builder / owner.


Once the buyer has made a deposit, the lawyer draws up the main contract of sale. The form of the document, each company has its own, but it necessarily prescribed duties of the parties, the value of the object, its parameters and so forth, as well as ownership of the seller to the object. If purchased housing under construction, then the contract specifies additional installment payments, completion, and penalties. As well as a preliminary, basic contract is in two languages, Russian and Arabic.

At this stage, the buyer may wish to leave the country. Now his main task - within two to three weeks to the remaining amount of the transaction. You can pay cash - if the buyer is in Egypt - a transfer from any bank in Russia to the account of the agency. When transferring money to the account of the agency main document certifying the fact of payment of the amount the buyer is a bank document on transfer ( "bills"). Some companies are drawn to the buyers receipt of payment - a voucher for each payment or the full amount of the transaction. The voucher is certified by the signature of a first-person company or an accountant and seal. If the buyer is not in Egypt, the receipt is sent to Russia's representative firm, where they can then get. When cash payment company must provide the buyer with invoice - an invoice for each payment. After the buyer paid the entire cost of the project, the company gives him the full amount of invoice payment and revoke previously issued bills.

When the money made in full, the seller signs a major contract of sale and transfers it to the buyer. After signing the document certified by the buyer as a lawyer, which is a guarantee the accuracy of the translation from Arabic to Russian and certifies the signature of the parties.

Simultaneously, the seller of real estate prepares a document on transfer of ownership of property (taukil). The procedure is performed in the notary's office - Shara Akari, representations of which are located in Cairo, Hurghada, Sharm el-Sheikh and Kena. Taukil may also be issued to the Egyptian embassy in other countries. Taukil seller also transmits to the buyer. If a secondary sale property, originals and copies of all taukiley previous owners also provided. In fact, design taukilya takes no more than three hours, but as a rule, the contract prescribes a longer period, as the developer / owner is often located abroad.

Now, on the basis of a contract of sale and taukilya, the buyer becomes full owner of the property.


Register (legalization) of the transaction is not mandatory. It is held at the request of the buyer, but highly recommended non-residents of Egypt. The procedure is performed in a local court. Registration involves the validation of signatures of the parties and make decisions about the transaction and the contract of sale are recognized as legitimate. To register for the buyer subscribes to the name of a lawyer in the Shara Akari attorney to represent his interests in court. Due to the workload of the courts, the legalization may take up to six months.

Another way of registration of real estate - design green contract. This analogy of Russia's privatization. The procedure is also not mandatory. The document can be issued for any value of the object. When the amount of 300 thousand e. f.. (about $ 54 thousand), the purchaser may obtain resident visas (see "About visa and residence permit in Egypt"). For green-contract the buyer is also necessary to issue a power of attorney to represent its interests in the Shara Akari addressed to a lawyer. Note that issued the green-contract, the buyer will not resell their property within five years.


Expenditure during the transaction are small. Commission agency averages 4%. However, sometimes the buyer relieved of its payment, as some agencies are working with developers without the commission. Typically, this relates to large projects, located on the first line of the sea. If the property is located in the urban array, then, not all developers are prepared to pay for agency services.

The cost of a lawyer to register the object in the trial are 2,5-3 thousand EF ($ 450-540). All other services of a lawyer for the registration of documents included in the amount of commission agency.

One-time tax when you make a green contract depends on the area of the object and includes the services of a lawyer who is engaged in its design:
• up to 100 square meters. m - 1 thousand e. f.. (around $ 180);
• from 100 to 200 kv. m - 2 thousand e. f.. (about 360);
• more - in the appropriate proportions.
This cost assumes the buyer.

MORTGAGES AND Payment by installments

In Egypt, a credit system for foreign nationals very poor. The right to receive credit (and not just the mortgage) in Egypt are:
• legal persons registered in the territory of Egypt;
• citizens of Egypt;
• residents of Egypt (the foreigners - residents of the republic over 21 years, as well as having regular, controlled gain or provide the requested credit).

Monthly payments on the loan may not exceed 35% of gross income credited. An important condition for loans secured by the acquired property - availability of green contract for this object (or the possibility of its appearance).

A foreign national - a non-resident to get a loan in an Egyptian bank is virtually impossible. However, there are other mechanisms.

The first option - payment by installments. Almost all builders offer attractive interest-free installment payments from year to four years. There is also an installment plan for long periods at a low percentage (5-7% per annum). Down payment ranges from 10 to 40% of the value of the object.

Payment by installments can also be obtained at a facility. However, in this case, the seller and the buyer first conclude a preliminary agreement, and the main sales contract, the keys to the facility and taukil buyer receives only after full payment.

If the buyer intends to purchase housing on the secondary market, then we can proceed as follows: take in Russia's bank mortgage loan secured by real estate or other liquid assets on the territory of Russia. This credit can be earmarked, that is, the buyer gets an opportunity to use the funds to buy property in Egypt.


Housing under construction

Any land on which the developer is constructing facilities should be located in his property. In Egypt there have been cases where buyers paid for housing projects, while the land for future construction had not been bought out by the developer or a building permit was not executed in full. To avoid such troubles, the buyer should ask the company documents proving ownership of land, and the license for construction.

It is important that the developer had the appropriate experience. This should be familiar with his previous projects: as a rule, they can serve as a guarantee of a successful outcome and future construction. You should also carefully examine the description of the object being built - the developers are obliged to provide such information.

Keep in mind the possibility of delay in delivery of the object. Construction is often delayed. Despite the fact that the sales contract required prescribed penalties for the delay, in practice they are not always paid. It depends on the reasons for the delay of construction. So, if it is caused by any changes in the laws of Egypt, the company assumes no liability. However, if the blame for the delay lies with the developer, he is obliged to incur penalties. Their size may be, for example, $ 100 for each week of delay. In case of refusal the developer to pay the fines specified in the contract, the buyer has the right to take him to court. However, the workload of the courts of Egypt is that the process could drag on for quite a long time, with no guarantee that it will end in favor of the buyer. The only option in some way to protect themselves - initially apply to reputable companies, after referring, as observed earlier deadlines objects.

Partial ownership

Egyptian law allows you to acquire the object is not completely, but only part of it. This option is suitable for those buyers who are not able to invest heavily, but it expects a profitable long-term investment. If any of the owners will reside in this apartment or house, then there is no need to apply in future to the management company for the maintenance of housing.

For example, if the cost of apartments is $ 16 thousand, then the purchase of three people the cost of each will be $ 5, 333 thousand, and the property will pass part of real estate in the amount of 33,33%.


Foreign buyer of real estate in Egypt in the transaction can stay at a hotel or rent a house. If you stay in the country is on the tourist season, then the rental apartments or houses, care should be taken in advance.

The issue of rental housing can be dealt with by the landlord, but foreign nationals are advised to avoid transactions with individuals and apply to real estate agencies, in order to eliminate the possibility of fraud. Tenant enters into a contract with him stating the details of the parties, duration and cost of rent, as well as the responsibility of the parties.

The deposit and cost of services agencies depend on the lease term. At lease six months the amount of fees the agency is 50% of the cost of one month's rent, from six months - 100%. When signing the contract the tenant pays the first month of rent, service agencies and insurance in the amount of monthly rent. Insurance is not returned by the lessor, if they are damaged interior decoration, furniture, etc. If everything is in order, the lessee receives insurance when going back.

It is worth noting that in the rental price is usually not included the cost of electricity and water.

In Hurghada furnished apartment of 80 square meters. m, with TV, air conditioning, etc., not on the first coastline will cost from $ 350 per month. The cost of renting such an apartment in Sharm el-Sheikh, a little higher - from $ 400, in Cairo - from $ 300.

For assistance in preparing the material thank Anastasia Agapov (Hurghada Homes Real Estate & Development) and Andrei Demchenko (Cheda Real Estate & Investment)

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