Why Invest in Egypt
Low property prices starting at around only £30k
Steady year-on-year capital appreciation of between 20-30%
Beautiful, well established tourist hotspots suitable for varied tourist interests, from excellent diving and snorkeling to cultural and historical locations
Stunning natural, unspoilt landscapes
Steady annual growth in tourist figures
Less property taxes than paid in the UK
No capital gains tax
British residents avoid inheritance tax on property in Egypt
Foreign investors are regarded by the government as a big investment opportunity and laws have recently streamlined procedures, making the purchase procedure easy.
Strong economic growth and increased investment in infrastructure are boosting the property investment market as a whole.
Warm desert climate with temperatures ranging from 14°C in winter to 30°C in summer creating a year-round tourist season
Politically stable country
Increased inward investment, creating a rich investment climate.
Well renowned developers are creating luxury resorts to cater for Egypt’s new influx of international tourists
Easy air access from many European destinations makes Egypt an ever popular medium haul holiday location
Cairo International airport is being modernized and a new terminal is to be built by early 2007
Low cost of living and maintenance costs
English is widely spoken, after Arabic
PROPERTY IN EGYPT
As British property buyers fly overhead on their way to the shopping malls of Dubai, do they realise they’re gazing down on a land with much more natural appeal, lower entry-level prices and a five-hour flight time? There’s so much more to Egypt than British buyers assume.
Most Brits are yet to discover Egypt’s new resorts where five-star luxury coexists with historical treasures, gorgeous beaches and fantastic diving in the Red Sea. Prices are still highly affordable, with apartments from just £15,000.
Egypt’s north-coast resorts along the Mediterranean stretch from Alexandria in the east to Libya in the west. Most buyers look between Alexandria and El Alamein. Another resort getting new attention is Ain Soukhna. On the Gulf of Suez and just 90 minutes’ drive from Cairo, it is a popular weekend retreat for Cairenes, and so offers potential for buy-to-let. With 60 kilometres of beaches, it has been largely ignored by non-Egyptians, but that may be about to change.
Across the Red Sea, Sharm el-Sheikh on the southern tip of Sinai, is now a firm favourite. It feels like a western Mediterranean resort and is the most expensive of the coastal destinations; a luxury three-bedroom apartment is likely to have a price tag of £120k-plus. But for that you get a resort that matches anything that Mallorca or Marbella can offer, at a far lower price.
Back on the eastern coast, the ‘Red Sea Riviera’ is hundreds of miles of unspoilt desert coastline dotted with a few upmarket resorts. For starters there is El Gouna, built in a Nubian style with pastel-coloured domes and arches. As well as the seductively named Mangroovy Beach, the marina there is formed of a maze of canals and waterfront homes joined by stone bridges.
Further south is Hurghada, a resort traditionally popular with scuba divers. It attracts a young-ish crowd and is filled with après-scuba nightspots, cheap bazaars and internet cafes. We offer a number of complexes in the area and also in nearby Sahl Hasheesh. The area is also home to the classy Soma Bay resort, complete with a Sheraton hotel and sensational links golf course. Off-plan properties include Apartments, Townhouses and spacious three-bed, waterfront Villas.
Beyond Hurghada is Safaga – quieter, less expensive, though also a major diving and windsurfing spot. Safaga is a good base for sightseeing, especially Luxor. Further south still is Marsa Alam, with its own airport. Not long ago a fishing village, many pundits tip as the new Sharm. Cheaper than Hurghada, it has many of Hurghada’s positives – reefs, palm trees, great beaches – but with fewer crowds.
Buyer’s Tax Information
Capital Gains Tax (CGT)
This operates on a threshold basis for individuals, depending on the profit made, as follows:
£500 or less: 0%
£500 - £2000: 10%
£2000 - £4000: 15%
£4000 and above: 20%
Rental Income Tax
As with Capital Gains Tax this operates on a threshold basis, depending on the profit made annually, as follows:
£500 or less: 0%
£500 - £2000: 10%
£2000 - £4000: 15%
£4000 and above: 20%
Inheritance Tax (IHT)
There is no inheritance tax in Egypt
VAT
All our properties include Egyptian VAT
Closing Costs / Completion Costs
Most costs at closing operate on a per square metre basis
Notary Fees: £50 [Under 100m²] up to £200 [Over 300m²]
Lawyers Association Charge: 0.5% of property price
Paperwork and misc. extras: £70
Legal Fees: £769 (Approx.)
We therefore recommend that you budget around £1000 total for an average 2 bedroom apartment
Real Estate Tax
Calculated on estimated rental value, currently calculated from the countrywide average.
Expect to pay around £40 per annum
Community Fees / Maintenance Charges
These costs are usually decided by the community of owners based on the budget allocated to maintenance of the development. As a general rule of thumb, expect to pay around £7/m²
Electricity
The average electricity bill is £10 (small apartment) - £150 (Large Villa) per month.
Water
Average water bills are reported to be around £5 per month
Telephone/Internet
An average pay-as-you go phone, used locally should cost around £20/month in call charges
To install internet, you must also install a land line £6/month. The internet charge is around £9/month
Repatriation of Funds
There are no restrictions on transferring your money out of Egypt.
Freehold/Leasehold
All of our properties are freehold unless clearly stated otherwise
Residency/Purchaser Requirements
In order to complete on your property, you will need to register with the local authorities. This is a quick, simple process for EU/U.S. citizens which we will assist you with, or set up on your behalf via Power of Attorney
Bank Account in Egypt
This is not required for your property purchase. If you wish to have a bank account in Egypt this can be easily set up in around 15 minutes
Work Permit / Employment
If you are under a contract to work with a company, you will be legally allowed to work for the duration of your contract. In order to obtain permanent position to work and/or to run your own business, you will need to register an Egyptian limited company. This will cost around £600, including share capital and setup costs.
Medical Insurance / Health Insurance
One time private treatment in Egypt is not expensive. However, you can also obtain permanent private health insurance for around £300 per year.
Education
There are a selection of English speaking education alternatives. The American school charges around £1,500 per child, per year.
Visas
Tourist Visas to Egypt are automatically granted for 30 days at a time.
It is a simple process to extend this to 9 months by submitting copies of your passport and a small fee of £7. Therein it is necessary to renew this every 9 months.
Property Ownership Rules for Foreigners
Foreigners are permitted to own up to 2 properties in Egypt, with total surface area of less than 4,000m² There is no limited on how many off-plan properties a foreigner can own, as long as they are “flipped” prior to completion. To own more than 2 completed properties it is necessary to register an Egyptian company, which is a simple process.
