Buying property in any country in the world brings with it a number of its own advantages and disadvantages. Buying property in Egypt has much more of the former. Egypt has a stable government, a growing economy and good infra-strucutre.

Property prices in the country are still low as growth in the market is still in the young stages. In spite of the global economic downturn, tourism in Egypt remains strong with visitors to the country enjoying not only the brilliant sunshine, endless sandy beaches and crystal clear waters, but also high standards of service, some of the world’s best scuba- diving resorts and unspoilt virgin coral reefs.

The country is home to some extraordinary wildlife; tropical fish, sea turtles and safari animals can be met. Aside from all of this, the ancient treasures of Egypt will long continue to draw tourists to the country from all over the world. Tourists and non-nationals of Egypt also experience very low levels of crime against them.

Rental yield in the country is strong, but does vary around the regions. Some, such as Sharm El Sheikh - Egypt’s most popular tourist destination, offer a higher rental potential than others.

ThisIsMoney.com writes that “Egypt offers really good overseas property investments. The properties are cheap and with excellent capital growth and a growing rentals market under way, it really is a no-brainer to invest in Egypt.” With citizen wealth continuing to grow in the country, more and more middle class people are buying property, thereby keeping the market stable.

“Egypt is an emerging market for overseas property investment  and is already offering excellent returns on investment.”

(PropertyInvesting.com)     

 Some Quick Facts!

• All properties in Egypt are purchased freehold with the exception of those in South Sinai where ownership is based on a 99yr lease system.
• Mortgages in the country are available only on freehold properties. This such mortgage will be a capital repayment type mortgage, subject to status, on 65% of the purchase price becoming available after completion as a release of equity basis. 
• There is an annual Real Estate Tax of approximately EGP 500 (around GBP £50).
• Running costs: Generally, apart from the annual Real Estate tax of approximately EGP 500 (approx. GBP £50), and the annual maintenance mentionned in the contract, there will be utility (water & electricity) charges which are substantially lower than by European comparison and other overseas property investment locations.
• There is no Stamp Duty in Egypt - a great tax perk and one of the many benefits of investing in property in the country.
• There is no Government Tax, Capital Gains Tax, VAT or Inheritance Tax in Egypt.
• Building and Contents Insurance for a property in this country cost around GBP £100 per year.
• Family members of an overseas property owner in Egypt can inherit the property. Drawing up an Egyptian will is recommended in order to ensure a smooth transition of ownership.
• An owner can sell his/her Egyptian property at any time.
• Prospective property owners must obtain a Residents Visa in order to open bank accounts, and, if hiring a lawyer, give him/her the Power of Attorney to register their property in court.
• There is no difficulty for overseas investors in paying their bills in Egypt, many banks - like the HSBC - enable internet banking so that monies can be transferred easily and conveniently, and there are overseas property investment management companies who look after all such payment requirements for a fee.
• How to pay tax on rental income from a property can always be accurately advised by a lawyer. Foreigners income is taxed at 20%, although many deductions can be made upon renting out a second home and the amount paid is usually very small.

‘Design & Finish’ Explained

European Design & Finish

European Design & Finish includes: polished ceramic floors, tiling in kitchen and bathrooms, windows and doors installed, all electrical installations, pre-installation for digital TV platforms as well as sockets for telephone, television and data lines, Fitted kitchen with base units, stainless steel sink, granite/marble worktops and mixer taps, and bathroom sanitary fittings in white porcelain (toilets, sinks, baths or showers) with mixer taps.

Egyptian Design & Finish

Normally in Egypt a new build property is sold either as ‘finished’ or ’semi finished’. ‘Semi finished’ means doors and windows are not installed, walls and floors are not finished, and kitchens and bathrooms are not equipped.

‘Finished’ means doors and windows are installed, walls and floors are finished, and bathrooms are equipped with sanitary fittings. However, kitchens only have a sink and taps, no cupboards or work surfaces and Air Condition is not installed.

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