Buying Property in Egypt as a Foreigner – What You Need to Know
Egypt’s property market is booming — from luxury apartments in New Cairo to seaside villas in El Gouna and Hurghada, a foreigner can start investing here than ever before.
But one question keeps coming up: Can foreigners legally own property in Egypt?
The short answer is yes — foreigners can own property in Egypt, but there are specific rules and restrictions to understand before you buy.
This guide explains everything you need to know — from ownership laws and legal steps to taxes, financing, and the best investment areas for 2025.
Is It Legal for Foreigners to Own Property in Egypt?
Yes. Foreigners are legally allowed to buy and own property in Egypt under Law No. 230 of 1996, which regulates property ownership for non-Egyptians.
However, the law sets a few conditions and limitations to prevent speculation and protect local housing markets.
Key Rules for Foreign Ownership:
- Maximum Two Properties:
A foreigner may own up to two properties in Egypt for personal use (not commercial investment). - Land Size Limit:
Each property must not exceed 4,000 square meters in size. - Government Approval:
Purchases require approval from the Egyptian Council of Ministers — though this process is typically routine. - Ownership Duration:
Once approved, the property must be held for at least five years before resale. - Inheritance:
Foreign owners can pass property to their heirs without restriction.
Tip: Foreign companies registered in Egypt can also own real estate if it’s part of their licensed business operations.
Property Registration & Legal Process
Buying property in Egypt involves two main stages:
(1) Signing the sales contract and (2) Registering ownership with the Real Estate Publicity Department.
Step-by-Step Guide:
- Reservation Agreement:
Pay a small deposit (often 5–10%) to secure the property. - Preliminary Sales Contract:
Signed between buyer and seller — it outlines payment terms and completion dates. - Title Search:
Your lawyer should verify the property’s title and ensure there are no encumbrances or disputes. - Government Approval:
Submit the ownership request to the Ministry of Justice for foreigner registration. - Final Registration:
After payment completion, ownership is officially recorded in your name.
Always work with a bilingual real estate lawyer experienced in Egyptian property law. They can handle translation, verification, and government paperwork.
Taxes, Fees & Ownership Costs
Buying property in Egypt is relatively tax-friendly compared to other countries.
Typical Fees & Taxes
| Type | Cost | Notes |
|---|---|---|
| Registration Fee | 2.5% | Paid at the Real Estate Office |
| Stamp Duty | 0.5–1% | Applied to the sale contract |
| Property Tax | ~10% of rental value | Paid annually if you rent it out |
| Capital Gains Tax | 2.5% | On profit when selling property |
There are no annual property taxes on owner-occupied homes below a certain threshold, making Egypt attractive for retirees and long-term expats.
Off-Plan & New Developments
Foreigners often buy off-plan properties (under construction) in gated communities like New Cairo, Sheikh Zayed, or North Coast.
These purchases typically come with installment plans of 5–10 years and developer payment guarantees.
Benefits of Off-Plan Buying:
- Flexible payment schedules
- Brand-new, modern homes
- Often higher return on investment (ROI)
- Strong resale and rental demand
Tip: Always confirm that the developer is registered with the Egyptian Ministry of Housing and that land ownership is fully documented.
Best Areas in Egypt for Foreign Property Buyers
Cairo & New Cairo
- Popular with professionals, diplomats, and families
- Home to top compounds: Mivida, Hyde Park, Katameya Heights
- Close to international schools and embassies
Red Sea Resorts
- Hurghada, El Gouna, and Sahl Hasheesh are freehold zones where foreigners can buy easily
- Ideal for vacation homes and rental income
- Strong expat communities, diving, and beachfront living
North Coast (Sahel)
- Egypt’s Riviera — luxury summer homes, new resorts, and strong short-term rental demand
- Foreign-friendly buying process
Luxor & Aswan
- Rich in heritage — limited foreign ownership but possible for smaller properties through local partnerships.
Can Foreigners Get a Mortgage in Egypt?
It’s possible, though limited.
A few Egyptian banks and international lenders offer mortgages to foreigners, especially for new developments with clear legal titles.
Mortgage Conditions
- Down payment: 20–40%
- Loan term: Up to 15 years
- Proof of income or residence in Egypt may be required
Tip: Many developers offer interest-free payment plans, which can be easier and faster than traditional bank loans.
Tips for Safe Property Investment in Egypt
- Hire a trusted local lawyer.
They’ll protect you from fake listings or unclear ownership. - Verify the developer’s reputation.
Research previous projects and customer reviews. - Translate all contracts into English or your native language.
- Avoid paying large sums in cash — always use bank transfers for traceability.
- Check property taxes and utility registration before signing.
Bonus Tip: Join local expat real estate forums or Facebook groups to hear firsthand experiences and get agent recommendations.
Pros & Cons of Buying Property in Egypt
| Pros | Cons |
|---|---|
| Affordable property prices | Bureaucracy can be slow |
| No property taxes for residents | Language barrier in contracts |
| High rental yields in coastal areas | Legal procedures can take time |
| Excellent lifestyle & weather | Limited mortgage access for foreigners |
Conclusion
So, can foreigners buy a property in Egypt?
Yes — and many are doing so successfully.
Whether you’re looking for a family home in Cairo, a holiday villa by the Red Sea, or a long-term investment, Egypt offers great value, strong growth potential, and a welcoming environment for expat buyers.
With the right guidance and legal advice, owning property in Egypt can be a smart and rewarding move — both personally and financially.