- Egypt’s economy and stock exchange are among the most advanced in the Middle East and Africa, with significant growth in the service and industrial sectors.
- Exchange traded funds (ETFs), such as VanEck Vectors Egypt Index ETF, are the most convenient way to invest in Egypt (NYSE: EGPT).
- Investing in Egypt entails major risks, such as regional political instability and a lack of economic variety.
Is Egypt a good investment opportunity?
Egypt meets the needs of many discriminating property investors today, thanks to its developing economy and significant tourism projects.
Egypt is set to become the next property and tourist hotspot thanks to forward-thinking government initiatives and a solid infrastructure. The investment climate in Egypt is typically viewed as favorable, with capital returns of up to 30% per year in important places.
The process of purchasing property in Egypt has been streamlined as a result of recent reforms, making it easier for foreign purchasers to purchase property and drawing investors’ attention to Egypt as a desirable investment site.
Why Invest in Egypt?
To earn a solid return on investment, today’s investors seek the stability and simplicity of the property market. Stock markets that are underperforming are frequently more volatile than real estate, which is especially true for non-professionals because there are numerous external factors that might affect your financial investment. Did you know that 50 percent of The Times Rich List’s members made their money by investing in real estate?
The advantage of purchasing property only for investment purposes is that it removes emotion from the equation. In Egypt, investment property comes in the form of re-assignable off-plan contract options that may be sold at a significant profit before completion, or “buy-to-let” scenarios that can yield consistent rental income and eventually large capital gain.
Main Reasons Why Egypt is a Desirable Investment Location
- Beautiful, well-established tourist hotspots catering to a wide range of tourist interests, including excellent diving and snorkeling as well as cultural and historical sites.
- The government views foreign investors as a significant investment potential, and new legislation has simplified regulations, making the purchasing process simple.
- The property investment sector as a whole is benefiting from strong economic growth and greater infrastructure investment.
- The year-round tourism season is made possible by the warm desert climate, with temperatures ranging from 14°C in the winter to 30°C in the summer.
- Luxury resorts are being built by well-known developers to cater to Egypt’s growing influx of international tourists.
- Egypt is a popular medium-distance holiday destination due to its easy access from many European destinations.
- The Cairo International Airport is being upgraded, with a new terminal scheduled to open in early 2007.
Egypt Investment Growth
Egypt’s investment property, like that of many other emerging economies, is significantly reliant on the success of the country’s burgeoning tourism economy. Beautiful, well-established tourist sites, particularly along the Red and Mediterranean Sea coasts, already exist and serve to a wide range of modern tourist needs, including superb diving and snorkeling, five-star hotels and golf courses, as well as cultural and historical activities. New off-plan prospects from major international developers are popping up all the time, drawing foreign investors searching for a safe investment with strong growth potential at bargain pricing. Due to the increase in tourist numbers, these buyers may rest assured that their investment will be well received. In addition, the upcoming opening of the newly upgraded Cairo international airport in early 2007 is expected to bring a new flood of visitors to Egypt’s new look 21st century tourist sector.
Egypt’s Prime Minister, Ahmed Nazif, is focusing on the country’s potential as a promising investment hub, particularly in important infrastructure industries, which would certainly have a direct impact on foreign investors’ interest in Egypt property. Munir Nassor informed more than 400 experts from the international tourist industry at the Middle East Travel and Tourism Summit in Jordan in 2006 that Egypt and the Middle East as a whole should expect additional investment in the hotel, spa, and airport sectors. “The collaboration we’ve had so far between the private and governmental sectors is providing the proper kind of push forward,” he continued.
Egypt today attracts more international property buyers than ever before as a result of recent measures to expedite property purchasing procedures. This can also be attributed to its comparatively straightforward purchasing system, which includes lower taxes than many other countries and no capital gains or inheritance taxes.
Capital Growth Predictions
Egypt property offers promising growth potential to all types of investors, based on a steady increase in tourist investments and a resulting surge in visitor numbers, with some areas of the Red and Mediterranean Sea coasts, as well as certain areas of Cairo and Alexandria, currently attracting as much as 25% annual capital growth. Purchasers can benefit greatly from investing in Egyptian real estate while it is still in its early stages of development.
Rental Yield Predictions
High rental yields are already feasible from property located in current tourist hubs, therefore rental income from property in Egypt is of considerable appeal to investors. It is anticipated that the rental income will be sufficient to cover the year’s mortgage and obligations. A pleasant year-round climate draws a steady stream of visitors throughout the year.
Egypt Economy
As a result of a variety of economic changes, private business now accounts for roughly 80% of the economy. Experts agree that the current economic climate should boost the country’s economy, provide more opportunities for employment and domestic wealth creation, and strengthen the country’s appeal to foreign investors. Egypt’s economy has significant long-term potential, thanks to a steady increase in direct foreign investment.
Natural and Cultural Factors
It’s easy to see why so many tourists choose Egypt as their vacation destination. The exotic Egyptian experience includes white sand beaches, colorful coral reefs, and desert landscapes. The Red Sea is one of the world’s most popular scuba diving locations, second only to Australia’s Great Barrier Reef. Resorts like Sharm El-Sheikh on the Red Sea are firm favorites among worldwide diving and snorkeling lovers. Other water activities, such as windsurfing, are popular in the area and attract visitors.
The Nile River also provides a rich cultural experience, with luxury cruises topping most tourist bucket lists. Egypt is also famed for its ancient history, and Alexandria in particular has a rich Graeco-Roman history, having served as the global center of culture and learning for many years. Alexandria was, and continues to be, a major cultural destination for travelers from all over the world, while Cairo now provides visitors a fantastic cultural experience along with excellent accommodations, restaurants, and shopping.
Egypt’s warm desert environment means that temperatures range from 14°C in the winter to 30°C in the summer, making it a year-round tourist destination. Egypt is only a 5-hour direct trip from the United Kingdom, and it is becoming a more popular tourist destination as travel availability increases.
Many Egyptian resorts and large towns are growing more cosmopolitan, with real estate investors from all over the world considering investments. Many purchasers appreciate the fact that, in addition to Arabic, English is frequently spoken in professional settings.
Egyptian civilization extends back over 5,000 years, and the country is rich in ancient Egyptian artifacts, particularly in the areas of Luxor and Alexandria, which continue to entice visitors year after year. In many prominent Egyptian towns and resorts, historical history merges seamlessly with a modern, globalized way of life.
Logistical Factors
Egypt is merely a 5-hour direct trip from the United Kingdom, and because to expanded airline schedules, Egypt is quickly becoming a top medium-haul luxury destination for European travelers.
Egypt’s major airports, including Abu Simbel, Alexandria, Aswan, Borg el-Arab, Cairo International, Luxor, and Sharm el-Sheikh/Ophira, provide excellent service. Cairo International Airport is being modernized, and a new terminal is expected to open in early 2007, attracting even more travelers.
Short Term
Egypt, as a burgeoning tourist destination, has a lot to offer investors looking for short-term off-plan investment options. The real estate market is buoyed by increasing visitor numbers and a continued influx of foreign investment into Egypt, and overseas purchasers are encouraged by a reliable and expanding property and tourist arena.
Low off-plan prices (starting at £30k for a beachfront apartment), assured rental yields, luxurious holiday homes in the sun, and strong returns on investment (up to 25% per year in some key regions) are all factors contributing to Egypt’s current popularity as a vacation and property destination. A growing number of tourists are investing in apartment complexes in popular tourist destinations, secure in their conviction in the Egyptian government’s commitment to continued economic growth and stability. With a flight time of about 5 hours from the UK, Egypt has quickly established itself as a top medium-haul high-end destination for European travelers, providing investors with a ready-made market for their properties.
Egypt provides investors with the type of all-purpose, self-contained vacation resort that is so popular in today’s international property and vacation markets. Short-term investors can achieve their off-plan contract re-assignment in a reasonably short period of time by investing in simple-to-maintain Red Sea properties on secure communities within easy reach of golf, beach, and other resort attractions.
Egypt’s economy is on a rapid upward trajectory, with the annual growth rate rising to 6.1 percent for the first time in the fourth quarter of 2005, and inflation falling sharply from a high of 18.1 percent in 2004 to only 3.1 percent in 2006. The IMF, with which Egypt has long had a tense relationship, is suddenly glowing with pride over the Egyptian government’s stabilization plan, which is fantastic news for today’s Egyptian property owners.
Timescale
Investors in off-the-plan developments estimate that construction will take between 18 and 24 months from reservation to completion. Short-term investors typically seek to profit from a carefully chosen, promising market by selling their unit to mid- or long-term investors 14 to 18 months after making their initial reservation, regardless of whether the project is ready or not.
Of course, the earlier you invest, the better your chances of making a profit. Importantly, by investing early in the project, investors obtain the best selection of apartments, which will always be the first to attract buyers in the future.
Level of Complexity
Short-term solutions have the least amount of complexity because the acquisition has not yet been completed; consequently, there are no property taxes, maintenance, or management fees to pay. This is a straightforward capital investment in which there is usually no need to enter into a Purchase Contract or make any mortgage financing arrangements. Before you start, double-check with the developer to see whether there are any fees associated with “flipping” or reassigning your contract, and at what point you are entitled to do so.
Risk Assessment
All investors should thoroughly consider the project and units in which they want to invest. Many other projects will be under construction at the same time, and a decision will need to be made. A selection will have to be made based on how a specific development or project will stand out from the competition in terms of style, location, on-site amenities, and the unit itself. Investors must also examine factors such as the amount of other units available within the development, anticipated demand, and competition for the type of property they desire to purchase.
To reduce risk, a short-term investor should go for the best property available, such as a corner unit, penthouse, or bottom floor unit with a private garden, which will always sell faster than a regular first floor unit.
Investors must have a clear understanding of how their exit strategy will work. Who will market the unit and how will it be done? What will the commission be for the selling agents? Should a buyer not be found before to the property’s completion, investors must be certain that they will be able to cover the payment until the unit is completed, and they must be willing to change their approach if required.
Short-term “flip” investments are obviously riskier than longer-term plans, but off-plan purchases in well-located Egyptian resort developments can be a smart investment with handsome returns if done properly.
Returns
Off-plan projects in major tourist locations along Egypt’s Red Sea Coast are expected to provide annual returns of up to 25%. Selecting prime resorts at pre-release pricing levels, allowing investment at below market value, allows savvy investors to obtain the maximum potential figures. A course reservation made earlier than usual ensures the best possible return on investment for any given project.
Investors benefit from lower prices by reserving at the pre-release stage, and in many cases, these are subject to successful planning applications, allowing for extra pricing uplift.
Financing
Because mortgages cannot often be raised against property that has not yet been built, the short-term investment approach is solely focused on capital outlay. Even if adopting a buy-to-flip strategy, investors must be confident in their ability to finish the transaction if necessary to cover all eventualities.
Payment terms will vary; good projects may require as little as a 20% down payment with stage payments of 40% until the project is completed. This technique enables short-term investors to run their strategy with the smallest possible capital outlay, with the expectation that they will have quit the strategy by the time the last payment is due.
Taxation
Buying a property and then reselling it before it is finished is a tax-efficient strategy to invest in real estate. However, the absence of stamp duty and other taxes in Egypt currently allows for easier transactions and higher returns on investment.
Medium to Long Term
Although Egypt has long had a thriving tourism industry, the country is currently experiencing unprecedented rise in visitor numbers. Egypt had a record 8.6 million tourists last year and is seeing up to a 60% increase in key Middle Eastern markets alone. As a result, Egypt is experiencing a property investment boom in coastal tourist resort areas, particularly along the Red Sea Coast. Beautiful beachside purpose-built complexes are springing up to meet Egypt’s growing demand for premium self-contained vacation resorts. These give a broad range of recreational facilities to meet today’s most demanding tourist requirements, as is the case around the world.
Investors are acting now, while property prices are still very cheap, because of the current economic strength and government attempts to attract more investment from foreign investors and a growing native middle class.
Beachfront flats start at roughly £30,000, and with annual capital growth of around 20%, it’s easy to see why so many foreign property investors are eyeing Egypt as their next investment.
Many purchasers are attracted to off-plan buildings for buy-to-let investment because they want to meet a high demand for excellent holiday accommodation in prime locations, and many projects come with rental guarantees of up to five years.
Second or vacation houses are becoming increasingly popular as Egypt becomes the preferred vacation destination for the international jet set.
They can find affordable vacation properties in Egypt’s spectacular natural and cultural surroundings.
Many buyers offset costs by renting out their homes when they are not in use, while also reaping the benefits of long-term capital appreciation.
Mid- to long-term investors want to keep their units after construction is completed, usually for at least 18 months following the first reservation, either to rent them out or to profit from capital appreciation upon selling.
Many long-term investors want to create considerable and consistent rental income over time, with the goal of eventually gaining significant capital gains through high steady capital appreciation.
Over the next five years, growth is predicted to be strong, particularly along the Red Sea Coast, and the longer investors are able to keep their money in their purchase, the higher their prospective returns will be.
Tourist numbers are strong, and the buy-to-let market has benefited as a result, allowing investors to benefit from excellent capital growth while supplementing their income with high rental yields in popular tourist destinations.
In the case of an off-the-plan purchase, full payment for the property must be made at various phases of development before the acquisition can be finalized.
Developer financing for up to 50% of the property value can be secured in rare situations, but most investors raise alternative financing or inject their own capital investment during the stage payment periods.
All charges will be applicable to mid- to long-term investors, amounting to roughly 10% of the purchase price, while ongoing costs such as maintenance, community fees, and utility bills will need to be considered into the overall finance plan. It’s important to keep in mind that you’ll need to open a bank account in Egypt to pay for the property’s utilities and other ongoing costs.
Property management and rental firms that are conveniently located on or near the site are frequently able to make some good arrangements.
These ensure that your unit is rented out on a regular basis and that such ongoing costs are covered.
As a result, maintaining a house overseas is no more difficult than maintaining a property closer to home.
Key Risks
A medium to long-term investment approach has significantly less financial risk than a short-term strategy that focuses on finding a buyer in a short period of time. Establishing a rental market and, eventually, a buyer for your investment should not be difficult if you make the correct investment in a high-quality, well-located project with many facilities. However, as with any investment, it is sometimes necessary to commit time and money before the end user is identified.
Egypt’s increasing appeal as a tourist destination is great news for buy-to-let investors.
Of course, this translates to more buyers and renters on the one hand, but it also means more competition on the other.
The customer can ensure that all relevant paperwork is in place before signing the purchase contract by engaging independent legal representation.
In Egypt, property is sold freehold, eliminating the possibility of ownership issues.
Because their homes are located in high-demand resort locations, investors can expect returns of roughly 20% per year over the medium to long term. Rental yields are also highly promising, averaging around 7% per year, and they are frequently guaranteed for up to five years, allowing for further returns on investment.
Many discerning investors not only select property in ideal locations, but also purchase ahead of time, allowing them to invest at a discount to market value.
A purchase made earlier than usual not only ensures the best unit, but also maximizes future returns.
Increased global awareness of Egypt’s new holiday property destinations would further benefit the tourism industry, resulting in more growth in the real estate market and inevitable price hikes.
Payment conditions for property purchases in Egypt vary; reputable developments may require as little as a 20% down payment with 40 percent stage payments till final completion.
Developers may offer 50% mortgage financing for completed projects in Egypt on rare instances, as completed projects can serve as collateral for a loan.
Most investors, however, rely on alternate financing methods such as equity release or capital expenditure to fund their purchases for the time being. The situation is projected to improve as mortgage lenders begin to develop products to support this rapidly expanding international market.
Off-Plan Property in Egypt
- Off-plan investment provides investors with a valuable opportunity to purchase at the lowest possible price and earn the most possible return on their investment.
- If you retain your property for a longer period of time, you can earn a good rental income as the value of your property increases.
Off-plan developments in Egypt offer the best investment opportunities today. With the implementation of new reforms, Egypt’s government has created an ideal environment for foreign investment in Egyptian real estate. A handful of new luxury resorts are attracting the attention of overseas property buyers on the lookout for a good deal. Another evident draw is the fact that the largest resorts have a growth rate of up to 30%.
Off-plan properties may be available as these development projects are completed, but prices will be significantly higher because the initial investor will have already pocketed his or her profit. We seek out high-quality fresh investment possibilities in Egypt, focusing on sectors with the highest potential for capital growth. These possibilities are typically found in attractive tourist destinations, where investors can expect significant rental returns.
Purchasing off-plan property in Egypt is a simple process that allows you to get the greatest deal possible while taking advantage of the best financing choices available.
How & Why Property Can be Cheaper if Bought Off-Plan
Developers are constantly exposed to risk, and it is apparent that they want to restrict bank loans and other debts as soon as feasible. As a result, they offer outstanding off-plan costs. Because buyers can’t view a physical home yet and must rely on location and artist impressions, diagrams, and computer simulations, they expect a price decrease.
Off-plan buyers benefit from excellent financing mechanisms, which is a significant advantage of the off-plan strategy. Depending on the project, the investor may only be required to pay a deposit of 20-40 percent of the purchase price, with the remaining balance due after the project is done.
When you decide to invest in off-plan property in Egypt, you’ll need to decide on a decent strategy to follow in order to get a good return on your money. Whether it’s a “Pure Investment” or a “Buy-to-Let” approach, our investment experts will happily assist you in selecting the most suited way and creating an investment plan.
Maximizing Profit From an Off-Plan Investment in Egypt
In a growing property market, the value of purchasing off-plan property as soon as feasible cannot be overstated. Prices will be relatively competitive, but they will rise quickly. The best returns are always seen by investors who buy early.
Shrewd investors who buy early have a better chance of getting the most desired properties on any given development. These units will always give the most capital appreciation in the shortest length of time and will attract the highest rental income due to high demand.
When work on a development begins, the value of the units begins to climb steadily. Buyers take on less risk because they don’t have to rely solely on plans now that a completed display home is available for viewing.
Buyers begin to buy units while building is underway, and as they sell, the price of the remaining units rapidly climbs. In many cases, a phase payment structure is used to reflect the increasing value of the properties. To early investors, this means that if you chose to sell your property now, it will be worth much more than it was when you made your initial purchase and paid the 30% deposit.
Property Tax
Taxes on the sale of real estate now have no resemblance to property taxes or registration fees in other nations. The Egyptian government is now considering a reform of property registration costs, with the goal of imposing worldwide property tax standards in Egypt.
Tax from the Sale of Property
In Egypt, the sale of land and/or structures is taxed the same way, and the method is extremely straightforward. The tax rate is 2.5 percent of the amount gained from a sale, and it must be recorded as tax payable by April 1st. For example, if you sell a piece of land for LE 100,000, you must file a tax return by March 31st declaring that you owe LE 2,500 in taxes.
Income from the sale of inherited property or other real estate is tax-free, as is income gained from the sale of land or other real estate you hold through a shared capital business, providing you keep your shares in the company for at least five years after the sale. This last rule is intended to discourage the formation of “paper” firms in order to avoid paying taxes on property sales.
Stamp Duty/Capital Gains Tax/Inheritance Tax
Real estate in Egypt is exempt from stamp duty and capital gains tax, and if you are a British resident, you will be exempt from inheritance tax on any Egyptian properties you choose to leave to your loved ones.
Tax on Rental Received
By March 31st of each year, any individual, partnership, or corporation must file a tax return listing all rent and other real estate-related revenue. The basic taxation threshold for rental income is LE 5,000 per year, and if your rental income is less than this amount, you do not need to report it.
For rental incomes over LE 5,000, half of the entire sum is tax-free to cover upkeep and other costs of ownership. The remainder is taxable at a regular personal and corporate income tax rate of up to 20%. For example, suppose you rent a flat for LE 8,000 per month, bringing in LE 96,000 per year in rental income. Simply take the 50% deduction from your costs, leaving LE 48,000 as taxable income. Taxes are still outstanding in the amount of LE 6,100.
Investment Finance in Egypt
Egypt’s mortgage industry is still underdeveloped, but new mortgage rules have made it possible for foreigners to secure Egyptian pound mortgages with loan-to-value ratios of up to 85 percent. Lending can last up to 30 years and up to 65 years old, with maximum monthly installments of no more than 25% of your monthly salary. However, with the current interest rate hovering around 14% p.a., many purchasers are opting for alternate financing options.
Proof of land ownership, as well as the developer’s name, are necessary for pre-approval.
This new rule is projected to further open up the market in the near future, resulting in a flurry of development and real estate activity.
Egypt’s construction sector has been hampered in the past due to a lack of a properly formed finance system.
Despite the fact that Cairo is one of the world’s most densely populated cities, there is a significant need for additional homes.
This situation is set to alter as soon as Egypt’s mortgage market develops.
Many purchasers obtain alternative finance in their home countries or release equity through a re-mortgage or equity release procedure, allowing them to acquire their Egyptian property outright.
Depending on the condition of the development, several off-the-plan developments offer their own financing alternatives of up to 100% financing. The fees that apply vary per developer, and repayments are usually indexed.
We can connect you with independent financial experts that can help you raise the necessary funds if you own property in your own country and want to borrow against it in an equity release plan.
Summary
All signs suggest that investment property in Egypt is now a highly profitable market. While Egypt’s tourist infrastructure and economic climate are constantly improving, we would advise investors to get in on the ground floor while prices are still extremely low and substantial returns on investment are available.
How do I purchase stock in Egypt?
You must choose a member firm to trade through in order to acquire stocks, bonds, or closed ended funds on the stock market. Your stockbroker will purchase or sell shares based on your instructions using the EGX Trading System.
What is the best way to invest in G bonds?
What is the best way to invest? Every week, the exchanges open a non-competitive bidding window for G-Secs. These securities can be purchased using your Zerodha account, and the amounts will be deducted from your trading account. T-Bill bids are taken Monday through Tuesday, and Bond bids are accepted Tuesday through Thursday.
Why should you put money into Egypt?
1) Big market, owing to a large (100 million) and young (average age 25) population predicted to reach 160 million by 2050. 2) Egypt has one of the most diverse rising economies in the world, making it more adaptable to crises and economic cycles. 3) Africa’s and the Middle East’s No. 1 investment destination.
In Egypt, how may I invest in gold?
I mean, I could make this a “all woe is me” situation, but what’s the point? All I can say is that I’m glad it wasn’t more money. Some people spend tens of thousands of dollars here.
I lived in India and was well-versed in the art of deception. This, on the other hand, was deliberate and heartless. Most of the individuals I told were surprised because Aswan isn’t known for ripping people off.
Being conned for gold in Egypt was a difficult lesson, but it taught me a lot.
Are foreigners allowed to invest in Egypt?
The law provides for 100 percent foreign ownership of investment projects and protects the right to remit and repatriate wealth earned in Egypt.
Can foreigners purchase real estate in Egypt?
- Take independent legal advice before signing any documents or handing over any money.
- If you’re buying off the plan, never pay the entire sum up front; instead, pay in instalments once each stage of the construction is completed.
- The final payment should generally be made only after the entire construction job has been completed.
- When evaluating the sales contract, keep in mind that unless it is bilingual, it is not legally binding. If you don’t comprehend something, don’t sign it. Here is a list of translators who have been accepted by us.
- Check that the property’s details (district, street name, building number, floor number, as well as property area and description) are reflected correctly on the deeds, as well as your personal information and the full purchase price of the property, payment method and dates, as well as the seller’s declarations that the property does not bear any rights for third parties. Following the signing of the contract, the purchased property must be registered in accordance with Egyptian law’s requirements and procedures.
- Financial transactions should be conducted at a bank or through banking channels, not in cash.
- Check the ownership of the land, making sure that the contract states that the buyer will own a portion of the ground on which the building is built. This can be specified in the contract, given that Egyptian law permits the landlord (of lands and buildings) to sell any unit of the building to any party without offering the buyer a share in the land. This will be stated explicitly in the contract in such a circumstance.
- Verifying the ownership’s legality and rightfulness, as well as the real estate developer’s permissions. This includes the seller’s ownership of the land on which the building is erected, as well as the fact that it was constructed under the supervision of Egyptian government authorities.
- Several older buildings are not registered, which can lead to disputes among many members of the owning family; as a result, it’s critical to double-check if the property is registered.
- In this instance, the buyer must confirm the property’s ownership chain (Transfer of title) and employ an experienced lawyer to review the property’s documentation. It is critical to verify that the building or unit is registered in the names of all or some of the family members selling the unit to the buyer, as well as that their right to ownership is well established and legalized, and that the buyer will be able to transfer ownership through the Real Estate Publicity Department’s applicable procedures.
- Foreigners are not allowed to own non-residential property in Egypt under Egyptian legislation. Incorporating a corporation to carry on a business, administrative, or industrial activity in Egypt allows a foreigner to possess and purchase non-residential property.
- A foreigner is not permitted to hold agricultural land or land that can be recovered for agricultural purposes anywhere in Egypt.
There are limits on the number of properties a foreigner can own (typically no more than two) and the areas of the country where they can do so. The Sinai has its own set of regulations. Consult an attorney about these issues.
Is it possible for an American to buy a home in Egypt?
Foreigners are limited to purchasing no more than two pieces of real estate, each of which must be no more than 4,000 square meters (sq. m.), and the property must be used to house a family member. The Council of Ministers must approve the transaction, which takes about two months.
Registering property in Egypt
For the next five years, the property cannot be sold or rented once it has been registered. The purchase price must be paid in foreign currency through one of Egypt’s state commercial banks (though this provision of the law is not enforced). Finally, after the 5-year period, the home must be rented furnished, which has tax implications (see tax section). If the foreigner is married to a local, the apparent answer is for the foreigner to have his or her spouse buy the property and then rent it out unfurnished, as locals do, to avoid paying taxes.
Egypt recently capped the total amount charged under the 3% registration fee law to EGP2,000 (US$345), regardless of the property’s purchase price. As a result, registration is now less expensive than it was previously. However, the procedure continues to take a lengthy time.
Is it legal to trade stocks in Egypt?
Under these guidelines, Egyptian stock exchanges became official markets governed by decrees, with trading only valid if carried out in conformity with the decree’s requirements and by licensed brokers. Government delegates also keep an eye on compliance with rules and regulations.