by Conquer Properties Sales Team 
When Property Buyers in Egypt understanding the legal requirements is crucial to ensuring a smooth and successful transaction. Knowing the necessary steps and legal obligations will help both local buyers and foreign investors avoid complications. This guide outlines the legal requirements for property buyers in Egypt, from due diligence to the final purchase.
1. Understanding Property Ownership in Egypt
Egyptian property laws are distinct for citizens and foreign nationals. Locals have no restrictions on property ownership, while foreigners can only own property in certain areas, usually in urban regions like Cairo, Alexandria, and the Red Sea Coast. Laws typically limit foreign ownership to 51% of a project, and they cannot directly own land in some areas (such as agricultural land).
2. Due Diligence Before Purchasing Property
Before making a property purchase, conduct thorough due diligence to avoid any future issues. Here are some essential checks to ensure the property is legitimate and free from encumbrances:
- Verify the Property’s Ownership: Ensure the seller has the right to sell the property by checking their title deed at the Land Registry.
- Check for Encumbrances: Ensure the property isn’t mortgaged or involved in legal disputes.
- Obtain a Surveyor’s Report: Hire a professional surveyor to verify the property’s condition and ensure there are no hidden issues.
3. The Role of the Notary in Property Transactions
In Egypt, property sales must be notarized to be legally binding. The Notary Public plays an important role in confirming the legitimacy of the contract, ensuring that the parties involved are the rightful owners and that there are no legal barriers to the transaction.
4. Sign a Contract and Pay the Necessary Fees
Once due diligence is complete and both parties agree to the terms, a preliminary sale contract (known as a “contract of sale”) should be signed. A down payment is usually made at this point. The contract should be registered with the local authorities to make the transfer official.
5. Required Documents for Property Buyers in Egypt
As a buyer, you must submit the following documents for property transfer:
- National ID or Passport: A copy of your ID is required for Egyptians, and a valid passport is required for foreign buyers.
- Tax Card: Egyptian nationals must provide a tax card.
- Property Deeds: The original title deed and other documents confirming ownership and legality.
- Proof of Payment: A receipt for the down payment or any other financial transfers made.
6. Property Taxes and Fees
Property buyers in Egypt must pay certain taxes and fees:
- Property Registration Fees: These are typically 1% of the purchase price or the property’s market value, whichever is higher.
- Stamp Duty: A small fee for the contract registration.
- Annual Property Tax: In addition to the purchase costs, the property is subject to an annual tax, which is based on the property’s rental value.
7. The Final Steps in the Property Transfer Process
After the contract is signed and the necessary taxes are paid, the buyer will be able to transfer the title deed in their name at the Land Registry Office. The property is now legally registered under the new owner, and they can move forward with the property use as they see fit.
8. Consider Hiring a Legal Advisor
While not mandatory, it’s advisable to hire a legal advisor or real estate lawyer to guide you through the buying process. An expert can help you navigate through complex legal documents and ensure that the entire transaction is carried out legally and by Egyptian law.
Conclusion
Buying property in Egypt can be an exciting venture, whether you’re a local or a foreign investor. However, understanding the legal requirements and taking the necessary steps will ensure that the process goes smoothly. From verifying the property’s legitimacy to paying taxes and fees, make sure you follow all legal protocols to avoid any issues.
If you’re considering purchasing property in Egypt, consult a legal expert and follow the necessary steps to secure your investment.
