Foreign Ownership of Real Estate in Egypt:

Investment Opportunities and Legal Safeguards for Stability

With the rapid growth of the real estate sector in Egypt, foreign investors are increasingly interested in acquiring property in this promising market. The diverse range of real estate options, from residential units to commercial and tourist projects, makes Egypt an attractive destination for international investors, with annual foreign sales reaching between USD 2 and 3 billion.

However, foreign ownership of real estate in Egypt requires compliance with a set of legal conditions and procedures that guarantee their rights and protect their investments. In this article, we will review the necessary conditions for owning real estate, the registration and documentation steps, and the restrictions imposed on reselling the property. We will also discuss the advantages that make owning real estate in Egypt an attractive investment opportunity for foreigners.

Conditions for Foreign Ownership of Real Estate:

A non-Egyptian may acquire ownership of real estate, whether developed or undeveloped land, under the following conditions:

1. Ownership shall be limited to a maximum of two properties throughout the Republic, for the exclusive use of the owner and their family as a private residence, without prejudice to the right to own real estate necessary for the conduct of a licensed private activity authorized by the competent Egyptian authorities. The term “family” refers to spouses and minor children.
2. The area of each property shall not exceed 4,000 square meters.
3. The property shall not be classified as an antiquity to the provisions of the Antiquities Protection Law.

The Prime Minister may grant exemptions from conditions (1) and (2) in cases as may be deemed appropriate. The Council of Ministers may establish specific conditions and regulations for property ownership in designated tourist areas and urban communities.

Obligations of Foreign Real Estate Owners:

A foreign national who acquired ownership of vacant land shall commence construction thereon within a period not exceeding five years from the date of transfer of ownership. In the event that such period expires without the commencement of construction works, the aforementioned period shall be extended by a duration equal to the period of delay in commencing such construction.

Restrictions on Alienation of Real Estate by Foreigners:

A foreign national who acquired ownership of real estate pursuant to this law shall not alienate such property in any manner whatsoever for a period of five years from the date of acquisition of such ownership.

• According to recent news reports, the Egyptian Council of Ministers has approved allowing foreigners to own real estate without a maximum limit, based on the recommendations of the Supreme Investment Council, with the aim of increasing the country’s foreign exchange reserves. The purchase price shall be paid in foreign currency by way of transfer from abroad to a bank wholly owned by the state, according to the rules, conditions, and regulations as may be prescribed by the decision of the Governor of the Central Bank.

Registration and Notarization of Applications for Ownership of Real Estate by Foreigners:

1. The Real estate registry offices must complete the registration formalities within a period not exceeding ten days from the date of submission of the required documents.
2. Non-Egyptian applicants for property ownership shall submit evidence of the transfer from abroad of the consideration stated in the contracts subject to the registration in foreign currency to a bank subject to the supervision of the Egyptian Banking Authority, in accordance with the following:

• If the consideration stated in the contract subject to registration is in Egyptian pounds (EGP), the equivalent amount shall be transferred in foreign currency at the prevailing exchange rate.
• consideration stated in the contract subject to registration is in foreign currency, prior approval from the Central Bank of Egypt shall be required for the sale in foreign currency in accordance with the law.

Benefits of Foreign Ownership of Real Estate in Egypt.

Real Estate Residency:

A form of investment residency, it is a residence permit granted to any individual who owns property in Egypt. Through this property, they are granted a renewable annual residence permit as long as the property remains in the owner’s name. The duration of the residency increases with the value of the property.

Conditions for the Grant of Real Estate Residency to Foreigners:

A residence permit may be issued to foreigners in Egypt for non-tourism purposes:

1. For a period of five-years renewable, a residence permit for those who own one or more properties in the Arab Republic of Egypt valued at no less than USD 200,000.
2. For a period of three-years renewable, a residence permit for those who own one or more properties in the Arab Republic of Egypt valued at no less than USD 100,000.
3. For a period of one-year renewable, residence permit for those who own one or more properties in the Arab Republic of Egypt valued at no less than USD 50,000.
4. Conditions for the Grant of Real Estate Residency to Foreigners for Off-Plan Units:

1. The full price of the unit shall be paid.
2. A down payment of USD 100,000 or 40% of the purchase price of the unit shall be paid.
3. The handover date of the unit shall not exceed four years.

• Documents Required for the Grant of Real Estate Residency to Foreign Nationals:

1. Submission of a preliminary contract between the foreign purchaser and the vendor, duly stamped by the Tourism Development Authority – New Urban Communities Authority – or the Governorate, as the case may be.
2. Submission of a letter from the competent authority.
3. Submission of a statement indicating that the unit is under construction specifying the estimated completion date.
4. Submission of a bank statement evidencing the transfer of the funds from abroad.
5. A standardized form shall be prepared containing the following

(property address – property number – owner’s name – nationality).

6. Three standardized forms shall be prepared for the procedures (from banks to the Passport authority – from the competent authority to the Passport authority – from the owner to the Passport authority when renewing the residency).

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