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Purchase Process in Egypt

Below is the standard purchase process in Egypt and issues that may affect that purchase:

• Even though many Egyptian properties are unregistered, registration is an essential pre-requisite to a purchase.
• Foreign ownership is limited to two residential properties per family, with a combined area not exceeding 4,000 square meters or within a historical site. (There is a resale restriction of five years , although exceptions can be applied for)
• Registration is complete after inspections are made and any payment of taxes and/or fees is made.
• A holding deposit is payable once the property is decided upon; that will take it off the market and start the contract process.
• It is advisable to have a lawyer conduct searches and advise on the legality of the purchase, even if the property is brand new and being purchased from an established developer.
• Mortgage products are available in Egypt although an overseas investor may wish to consider mortgage options outside of Egypt too.

Costs of a standard property purchase in Egypt include the following:

• Property registration and legal fees for conveyance total around 6%.
• Stamp Duty is payable on property at 3%. However, in Egypt there is no stamp duty or capital gains tax payable on real estate.
• British residents will avoid inheritance tax on any Egyptian properties passed on to relatives and partners etc.
• The buyer pays a nominal inspection and measurement fee of around 65 Euros.
• Tax on income from the property amounts to between 20% and 22%, an alternative VAT.

The Obelisk Advantage:

As Obelisk approaches its projects purely from an investment perspective, its priority is to deliver each real estate product with an emphasis on simplicity and transparency throughout the purchase process. Therefore, Obelisk has already identified the purchase procedure for its clients as a simple, four step process:

1. The client chooses and reserves the unit that best suits their investment requirements, and Obelisk takes the client through a compliance procedure.
2. An independent lawyer, sourced and appointed for the client by Obelisk, will have already carried out full due diligence on the real estate product. They will issue all purchase contracts and paperwork to the client.
3. On receipt of this contract, the client will sign and make the first payment. The lawyer will notify the client of all further payments when required.
4. The appointed lawyer will also represent the client in all aspects legally required within the country of purchase, ensuring that clients of Obelisk enjoy the benefits of simple and hassle-free real estate investment.