Monday, August 24, 2009

Buying property in Egypt/Sinai.

Information for foreign investors in Egypt.

The Law currently states that foreigners can buy as many properties as they wish in Egypt as long as they do not have a court registered entry into the Land Register, and are less than 4,000 sq mtr floorspace in total.

Court registry of the property will put the owners name on the land register.

10% of property in Egypt is not registered on the land registry, but at Notary Offices.

A client wishing to buy off development/ non compound have to use the services of a lawyer to search for the true ownership of the property/land.

If it is not on the land registry this can be costly, time consuming and precarious. Once the lawyer has established the true ownership he then enters it onto the court registred Land Registry under the new owners name ( foreign investor ).

Because of this clause a foreigner is limited to buying only 2 properties in Egypt to a total of 4,000 sq mtr in actual building excl land attached.

The foreign investor is also not able to sell the property till a period of 5 years has elapsed after the sale date.

If foreign investors wish to sell within 5 years, or to buy more properties it is in their interest to register the sale only at a Notary Office as the registered owner, and not at the Land Registry Office.

If you buy from a compound that has the registry in it's company name, you are free to sell your property at any time.

If your name is on the Land Registry you cannot within 5 years.

Another restriction is buying land or property on the Sinai Peninsula, ie Sharm el Sheikh, Dahab, Nuweiba.
Foreigners cannot buy any property or land in Sinai on freehold.
This law came into force to stop any Israeli purchasing of land in Sinai and limiting it to only Egyptian investors.

Foreign investors wishing to invest in Sinai property can only buy leasehold for a term of 99 years. The ownership, therefore ensuring of the land and property will always remain in Egyptian hands.

No comments:

Post a Comment