Red Sea Property Care

Comprehensive Property Service Experts

 

 Home    Our Services    Furniture    Property News    For Rent  
Laws & Regulations Of the Rights Of Non Egyptians
To Own Properties In Egypt.
 
Although Law No.230 Year 1996 had regulated the rights of non Egyptian identities to own properties in Egypt, there is still mis understanding of the rules by many non Egyptian investors.Since the Law was introduced in 1996 there has been many ammendments to it and section below defines the Rights of non Egyptian Foreigners to own properties in Egypt In Touristic Zones And Other Residential Areas:
 
  • Law 230 for year 1996 section 2 had empowered the Egyptian Ministerial Cabinet to put the rules and regulations which governs Ownership of properties in Touristic Zones and New Developments by Non Egyptians.
 
Accordingly, Egyptian Ministerial Cabinet Decision No. 548 year 2005 had clearly defined certain tourustic zones where certain rules apply and also defined the other areas where different rules are enforced :
 
A.     RULES REGULATING NON EGYPTIANS PERSONAL OWNERSHIP OF PROPERTIES IN CERTAIN TOURISTIC ZONES AND NEW DEVELOPMENTS
 
1.      ALL NON EGYPTIAN FOREIGN NATIONALS ARE TREATED IN THEIR LEGAL RIGHTS AND OBLIGATIONS AS NORMAL EGYPTIAN NATIONALS REGARDING OWNERSHIP OF PROPERTIES IN TOURISTIC ZONES AND NEW DEVELOPMENTS PRECISELY NAMED HERE UNDER 2. AS LONG AS THEY COMPLY WITH ALL THE RULES AND REGULATIONS OF THE LOCAL AUTHORITIES AS NORMAL EGYPTIAN NATIONALS.
 
2.      THE EGYPTIAN MINISTERIAL CABINET DECISION No. 548 year 2005 HAD PRECISELY NAMED THE TOURISTIC ZONES WHERE THIS RULE APPLIES AS FOLLOWS: THE RED SEA ZONE - HURGHADA - SIDI ABDUL RAHMAN BAY - RAS EL HEKMA AND MARSA MATROOH TOURISTIC ZONE. THE ABOVE MENTIONED AREAS ARE FREE HOLD OWNERSHIP.
 
3.      ALL NON EGYPTIAN FOREIGN NATIONALS HAVE THE FULL RIGHTS TO DISPOSE ANY PROPERTY THEY OWN, IN THE ABOVE MENTIONED AREAS, BY SELLING OR RENTING TO A THIRD PARTY AS SOON AS THE OWNERSHIP OF THE PROPERTY IS TRANSFERRED TO THEIR NAMES.[1]
 
B.     RULES REGULATING NON EGYPTIANS PERSONAL OWNERSHIP OF PROPERTIES IN RESIDENTIAL ZONES:
 
1.      “Any Non Egyptian single person can only own 2 properties of maximum area of 4000m2 per property which should not be disposed for 5 years”. This Rule is applied in Residential Zones and to Foreigners who intend to take it as a permanent home Residence.[2]
2.      Other areas near the border Zones like Sharm Al Sheikh, Dahab, and Taba etc. are only sold on a lease hold basis for 99 years.[3]
 


[1] Egyptian Cabinet Ministerial Decision No.548 Year 2005
[2] Law No.230 Year 1996.
[3] Egyptian Cabinet Ministerial Decision No.548 Year 2005

Guaranteed Rental Income, New Strong Sale Tool in the Egyptian property market:

For the first time in the Egyptian property market, an increasing number of forigne companies and sale agents offering the buyers what is called a guaranteed rental income of 10% for 5 years and even more...

Customers should be very carefull in taking these offers as many of them are based on inflating sale price to cover the cost of guarantee, on the other hand giving the customer a false impression of high rental yeild click here for reports

Rental market in Egypt is inheritenly high, specially nearby the touristic area like the red sea. The market is naturally driven by 2 types of tenants :
1- Resident forigne expatriates and local egyptian tourists.
2- More than 9.7 million forigne tourists visit egypt every year .

But as in any open market business, is controlled by the supply and demand which makes it easier and cleaner for us in Egypt to practice away from all the gymnastic offers of guaranteed rental income.

by Dalia Saleh, Marketing Director.Published Thursday 4 October 2007 8.35am.