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Real Estate and Property Law in Egypt

 

 

Real estate and property law in Egypt

Registration of property in Egypt (for Egyptians and foreigners)

 

There are special offices for real estate registration, which are responsible for all notarization Affairs and documentation for requests of non-Egyptians (foreigners) for ownership according to provisions of law of foreigner’s ownership No. 230 of 1996.

Ownership shall be notarized at public notary offices and It’s essential to refrain from buying any property in case the seller does not have the legal status for sale or disposition of the property in order not to fall a prey to fraud or misrepresentation, therefore when deciding to buy a property in Egypt please contact the firm for a legal advice And take advantages of our firm services to protect you from real estate fraud.

The laws governing the work of documenting and notarizing of all Types of property contracts (real estate) in Egypt : 

  1. Notary Law No. 114 of 1964, as amended.                                                                                                                                                                                                                           
  2. Law on Documentation No. 68 of 1947, as amended.                                                                                                                                                                                                                        
  3. Law No. 5 of 1964 on the organization of public notary offices.                                                                                                                                                                                   
  4. Law No. 142 land registry system of 1961.                                                                                                                                                                                                                       
  5. Law No. 230 of 1996 has organized the ownership of Properties for non-Egyptians.

Importance of notarization of property contracts (Real estate) in Egypt : 

The benefits of investing in real estate in Egypt : 

conditions for ownership of foreigners of built real estate and space lands : 

  1. acquisition of no more than two properties across the country to be used for his own habitation And his family, and without prejudice to the right to own real estate which is necessary for the conduct of private activity licensed From the competent Egyptian authorities.                                                                                                
  2. ‚Äč‚ÄčEach property shall not exceed four thousand Square meters.                                                                                                                                                                                      
  3. Property shall not be accorded as prestigious Monument regarding the provisions of the Protection of Monuments Act.

A request may be submitted to the Prime Minister for the exception of the conditions contained into two items 1.2 per his vision accordingly.

The Council of ministers is competent to set conditions and Private rules regarding foreign ownership in touristic areas and urban communities that it determines.

Documents required for registration of property contracts (real estate) in Egypt : 

  1. Documents Ownership of the seller registered according to the law of real estate registry.                                                                                                                                     
  2. A power of attorney for buying the property.                                                                                                                                                                                                                               
  3. A copy of the buyer passport.                                                                                                                                                                                                                                                
  4. Official revealed returns.                                                                                                                                                                                                                                                    
  5. A copy of buildings license.                                                                                                                                                                                                                                                  
  6. Engineering drawings.                                                                                                                                                                                                                                                         
  7. Power of attorney notarized at the competent public notary office (Egyptians) or a power of attorney legalized up to the Egyptian Consulate (for foreigners).

Tax legislation of real estate in Egypt :

First, law No. 196 of 2008  of issuing as amended by Law No. 103 of 2012 and Law No. 117 of 2014 : 

Article (12) of the Tax law No. 196 of 2008 states that: “tax rate is to 10% of the annual rental value of the buildings that are subjected to the tax, that after excluding 30% of this value as for the places used for housing, and 32% for the places used for purposes other than housing. This is in return of all expenses that are endured by the taxpayer including maintenance expenses”

Under article (18) to (Tax exemption

Second, real estate tax acts In Egyptian law : 

Article 42 of Law No. 11 of 2013 stipulates on amendments of certain provisions of Income Tax Law promulgated by Law No. (91) Of 2005, as amended, and as amended by Law No. (101) for the year 2012, that Tax at a price of 2.5% shall be imposed on the total value of the disposition in built properties or real estate To build on, and the seller has to pay the tax within thirty days from the date of Disposition, and in the case of the notarization of Dispositions, public notary offices shall collect taxes and supply them to Tax Administration within thirty days from the date of the notarization, unless Taxes have been paid to Tax Administration before that date.