Egypt Country Profile

Egypt lies in the south-eastern corner of the Mediterranean. The majority of the country is desert, but the Nile flows from Sudan in the south through Egypt into the Mediterranean at the Nile Delta near Alexandria, Egypt's second largest city. This north-south route provides the main artery for Egypt, and has done so since time immemorial. Today Egypt is best know for the Red Sea, which provides some of the best diving and water sports in the world.

Tourist Industry:

Having consistently worked to promote the historic, cultural and entertainment attractions available in Egypt, the Egyptian government was rewarded in 2006 when the country received its greatest numbers of visitors on record to date.  Egypt is now a number one, medium haul, top end destination for European travellers. 

Tourists are attracted to Egypt for its history that dates back to around 3200BC, for the warm waters of the Mediterranean Sea, for the diving possibilities on the Red Sea and for the luxury hotels and resorts that make Egypt something special for the international tourist.  An increasing number of visitors are buying into new build luxury apartment complexes in the major holiday hotspots and are being rewarded with low off plan prices, guaranteed rental yields, a holiday home in the sun and an investment that even begins increasing in value over the build period (www.Amberlamb.com).

Visa Requirements

British visitors need a visa.  These can be obtained from an Egyptian Consulate outside Egypt or easily bought on arrival by payment in Sterling, Euro or USD, for stays of up to a month.  Your passport should be valid for at least six months.

Foreign purchasers have the right to own real estate and land in Egypt. Today the government recognizes the great value foreign investors in property have for the success of the economy and have set about actively encouraging overseas buyers to Egypt. New laws have been established to make the Egyptian property purchase procedure more simple and secure.

For the Zafarana Beach Resort a full due diligence has been conducted by UK based lawyers, who have also written the contracts. As the developer is Dutch, the contract is governed under European law so as to avoid any potential problems dealing through the Egyptian legal system. This has been done to ensure the clients? protection through the removal of problems created by translation differentiation. The Title Deeds will be legalised by the Royal Netherlands Embassy in Cairo. There is no restriction on direct foreign ownership for this development, and there is no restriction on when you can resell your apartment. Unlike other areas of the Red Sea Coast the Zafarana beach resort is freehold ownership.

Fees and Taxes

Egypt levies no inheritance or capital gains taxes. There is only a 2.5% sales tax to be paid on the resale of your property. The rental income can be paid into any nominated account anywhere in the world. Dependent on which country you intend to receive your rental income, it may be subject to income tax, which will vary based on individual situation.

Registration

Registration with the Egyptian authorities is an optional component at the completion of your property. Currently the registration fee is 3% of the purchase price which is listed on the title deed. At present, only approximately 10% of property in Egypt is registered. Registration would be compulsory if you intended to re-mortgage your property through an Egyptian based lending institution. Registration can, however, be completed at any stage post-completion. Should you wish to register your property, Fairfax Investments can advise you on the legalities of such a process.

Mortgages

Mortgages available to foreigners have only recently become available. As a result of this, they offer high interest rates and low LTVs. Consequently in the majority of cases it makes more financial sense for investors to source funding from within the UK. There are, however, some mortgage options available for investors in the Zafarana Beach Resort at an interest rate of 5%. Please ask for further details.