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Investment Property Overseas - Invest In Egypt FAQ's
Frequently asked Questions ?
1) Are the properties in Egypt freehold or leasehold?
All properties are freehold in Egypt except in South Sinai where the ownership is based on a 99-year long lease system.
2) Are mortgages available?
Yes, on freehold properties only, it is a capital repayment type mortgage, subject to status, on 65% of the purchase price is available after completing as a release of equity basis. A great incentive to invest in Egypt.
3) Is there a builder’s warranty on new build, property in Egypt ?
Yes, most developers offer a 10 year warranty. Always check the contract. Many other investment property overseas in other emerging property markets won't offer this.
4) What type of running costs should the buyer expect?
Apart from the annual Real Estate tax of approximately EGP 500 (approx. GBP £50)and the annual maintenance mentioned in the contract, there will be utility (water & electricity) charges which are substantially lower than by European comparison and other overseas investment property locations..
5) How much will the building & contents insurance cost?
Approx GB £100.00 per annum.
6) What is 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.
7) What is 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.
8) Is there a Real Estate Tax?
There is an annual Real Estate Tax of approximately EGP 500 (approx GBP £50).
9) Is there any Stamp Duty?
No. One of many great tax perks that make Egyptian overseas property investments a great purchase!
10) Is there any Government Tax?
No.
11) Is there any Capital Gains Tax or V.A.T?
No.
12) Is there any Inheritance Tax?
No.
13) Can my family inherit my overseas investment property?
Yes, but it is advisable to have an Egyptian will, to ensure smooth transition of ownership
14) Can I sell my property at any time?
Yes.
15) Do I need to become a resident of Egypt to buy a property?
Yes, you have to obtain a residents visa, so that you can open a bank account and if using an Egyptian lawyer give him power of attorney to register your property in court.
16) How do I pay my bills in Egypt
Some banks like HSBC have internet banking, so transferring money is simple, you can use an overseas investment property management company who will look after all your payments for a fee.
17) How do I pay tax on rental income
It is advisable to contact an Egyptian lawyer to help in this matter. Foreigners income is taxed is at 20% but when renting out a second home, there are many advantages and deductions that can be made, therefore the amount paid is usually very small.
Request our 'Invest In Egypt' Guide!