The buying process in Turkey

Egypt - Information for buying property

Egypt has long been one of the favourite tourist destinations for Czechs and Slovaks, mainly due to its excellent accessibility, year-round warm and sunny climate, fascinating sights, beautiful sea with crystal clear waters full of life and last but not least attractive prices and low investment risk.

Real estate prices in Egypt are considerably lower than in Europe, mainly due to the low cost of labour and building materials. According to foreign marketing studies, property prices in the area are expected to rise by up to 100% or more in the coming years.

Our offering focuses mainly on properties in the seaside resorts of Hurghada and Sharm El Sheikh, which are the most popular among our tourists. We do not offer properties in other locations such as Marsa Alam, Luxor, Cairo, Alexandria and Aswan due to low interest from buyers.

For those interested in buying or renting a property, we provide a complete service, from property selection and inspection to assistance throughout the entire transaction process. We also offer the services of our external legal representatives who will take care of all legal transactions, including registering official deeds and representation in Egypt.

Why invest in Egypt?

Foreign investors choose to buy property in Egypt for a variety of reasons, the most important of which include:

Very low real estate prices.
Lower cost of living compared to Europe.
A year-round season with pleasant temperatures even during the winter months.
Quick and easy accessibility (approximately 4 hours flight).
Low airfares - return tickets from the Czech Republic to Hurghada are available from CZK 5,500 including taxes.
How to buy property?

Egyptian law is based on English and Islamic law, and the procedure for concluding a purchase contract is similar to that in the Czech Republic. Law 230 of 1996 allows foreigners to purchase real estate in Egypt. A valid passport and funds are sufficient to purchase a property. The property can be registered in the Egyptian Real Estate Registry or the validity of the contract can be verified by the court, which is most advantageous for foreigners. At a minimum, court verification ("The Court Validity Suite") is recommended. Property registration is only possible for certain properties and may come with restrictions. Both methods, i.e. court verification and registration, are voluntary and are not necessary for the actual purchase and ownership of the property.

Conditions for foreigners to purchase property:

A valid passport and visa are sufficient to purchase property in Egypt.
According to the Egyptian Investment Law, a foreigner can own a maximum of two plots of land of up to 4,000 sqm each. In the case of ownership or co-ownership of a company registered in Egypt, this restriction does not apply.
A foreigner may own a maximum of four properties for himself and his family (only two in the case of property registration).
Once a property is registered, it cannot be sold for five years unless you decide to make a new investment in Egypt. The law does not apply to buying another property after selling the original one. It is only possible to register a property once it is fully completed and takes approximately 6 months or longer. Registration is generally not advantageous and there is no single reason to undergo it.
The most common and recommended protection of property rights by us is the aforementioned judicial validation.
After purchasing a property, it is possible to apply for a long-term residence visa for the buyer and his/her family members (spouse and children). The visa is issued for half a year and must be renewed regularly.

Days:

According to our information, no taxes are generally payable in Egypt in relation to real estate. However, it is advisable to check with the relevant tax authorities for any relevant tax liabilities. Below are indicative figures applicable as of 2017:

Tax on the sale of real estate: 2.5 - 4% of the price of the real estate is payable by the individual (paid by the seller).
Tax on the purchase of real estate: none.
Tax on the rental of real estate: generally not payable. However, according to the law, tax is levied on 50% of the rental price at the rate of 10-20%. Legal entities always pay a tax of 20%. Unless you are renting the property through an Egyptian company, the rental is not provable, but the obligation to pay taxes still applies.
Property tax: not payable if the property does not exceed the price of LE 500,000. Above this amount, a minimum tax is payable according to the value of the property.
Land tax: A minimum tax is levied according to the size of the land.
Inheritance tax: Not payable.

Types of property that can be bought in Egypt

Resorts with private beaches - These resorts offer beautiful beaches and are ideal not only for spending holidays but also for making a profit from subsequent rentals. Apart from beaches, you will also find other facilities such as heated swimming pools, restaurants, bars and shops. If you're looking for a good investment property with rental options, this is the best choice.
Resorts without beaches - These resorts, located on the second or next line from the coast, are cheaper. However, they don't have their own beach, so owners must use public beaches or the paid beaches of nearby hotels. These resorts are suitable for less demanding clients who want to get a cheap beachfront apartment for their own use, but are not suitable for renting.
Apartments - These are apartment buildings occupied mostly by locals. Buying an apartment in such a house is the cheapest option, but this option is not suitable for tourist purposes, and subsequent renting is very difficult. When selling these properties, it is often necessary to expect a loss.
Villas - These properties can be purchased in luxury resorts or villa districts. Buying a villa is always a good investment and represents luxury living by the sea. However, it is important to be able to take care of the villa during your absence, which means high maintenance costs.
Size of properties/apartments - area in m²

In Egypt, when buying a property, the total area including the share of the common areas and the land under the house, the so-called "Total Size", is given. For example, an apartment with a listed size of 45 m² (Total Size) may have a floor area of 36 m², with the remaining 9 m² being the share of the common areas.

Price of property:
When buying a property in Egypt, it is important not to be tempted by the low price at first sight. A low price usually means that there is a problem behind it. Of course, there are exceptions, but to avoid scams, it is crucial to rely on a proven real estate agent.

Legal Services:
Unfortunately, you can't always rely on the reputability of local lawyers in Egypt. There are cases where a lawyer has defrauded his client. Therefore, never trust an unknown lawyer and always go to a verified professional. It is a common practice for a lawyer to get paid upfront for services that he or she does not end up performing at all.

Local property dealers:
This poses another significant risk. Virtually anyone can sell property in Egypt, often illegally and without any authorisation. Often these are women who have moved to Egypt to pursue their love and have no other employment options in the local context. These women then often offer properties in their home country and try to attract buyers by communicating with them in their mother tongue. The buyer may then mistakenly think he is dealing with a professional and decide to buy. Unfortunately, such inexperience, ignorance and unprofessionalism can lead to losing your savings. This situation happens on a regular basis, and every year many people contact us for help after such a scam. So always check whether the seller has a valid business license, how long they have been in business, whether they have their own office and whether they personally know the properties they are offering. Sometimes you may come across a seller from another country who has never seen the property and is only serving as an advertiser.

New Real Estate Law:
The recent real estate law in the Czech Republic has introduced new rules that allow only persons with a valid trade license for a related trade with the subject of business "Real Estate Brokerage" to broker the sale of real estate. If you do not find this item in the register extract, it is an illegal activity. A Czech citizen living long-term in another country is not exempt from Czech laws and must have a valid trade license for any activity provided to consumers in the Czech Republic (including brokering the sale of real estate from Egypt). If the intermediary operates within an Egyptian company with a valid license, the sale can only take place in Egypt, not in the Czech Republic. Newly, the real estate intermediary must be insured by law against damages caused by its activities. We hope that this law will better protect you from illegal sellers who are still present on the Czech internet.

Our real estate agency provides a wide range of services:

complete real estate service in the Czech Republic and Egypt,
organization of property inspections,
safe booking of properties without the need for personal presence,
the possibility of signing contracts in the Czech Republic,
payments for properties even in CZK,
sales service and assistance with subsequent rental of the purchased property,
providing furnishing of properties with furniture and electrical appliances,
legal services and representation at the authorities in verifying documentation and registration of properties.For properties up to the value of CZK 800,000,
we offer only basic online services such as consultation, provision of property information, preparation of purchase contracts and signing instructions free of charge. Other services can be purchased from us according to the current offer.

Please note that if a client starts the process of purchasing a property and subsequently changes their mind about the purchase, they will be required to pay in full for all actions and services performed by us, regardless of the previous free service offer. These services are only free for clients who complete the purchase.

Pricing Information:

100% LOWEST PRICE GUARANTEE / NO PROVISION: The prices of the properties in our listings are fixed by the developers and are not increased in any way. We guarantee that these properties cannot be purchased from another seller or directly from the developer at a lower price than what we offer. If you come across a lower price, please contact us and we will update it for you.

Exceptions:For properties where the commission is insufficient to cover normal costs, a service charge may be added to the purchase price. You will always be informed of this in advance.

Re-sale of properties:

In our offer there are also individual apartments sold by private persons. These re-sales may differ significantly in price and buying process from other offers in the resort. External legal services may be required for these properties and are not included in the price. Properties marked as "Resale" are not covered by the 100% Lowest Price Guarantee or the No Commission Guarantee, as commission may already be included in the price.

Currency: Property prices are quoted in the currency requested by the seller. At the buyer's request, payment can be made in another currency, according to the current exchange rate. Payment in CZK is only possible through our office as part of a paid service package.

Procedure for buying a property in Hurghada:

If you choose a property from our offer, there are several ways to purchase it:

In-person meeting (free of charge):
You will receive basic information about the property online.
We will schedule an on-site viewing where you will meet with our staff or the developer's manager.
You can decide whether to purchase the property and sign the contract on the spot or when you return to the Czech Republic.
After payment, you will take possession of the property on the agreed date.
Additional real estate services can be purchased with this option.

Remote negotiation (standard, free of charge):
You will receive the necessary information and instructions from us online.
You will sign the reservation contract and send it back by email, together with the reservation payment.
After the payment is received, the developer will send the purchase contract, which you will sign and send back.
After the payment is credited to the developer's account, the contract will be signed and sent back to you.
You can purchase additional real estate services.
Remote superior negotiation (the safest option with our buyer protection - paid service)
We will provide you with expert advice in choosing the ideal property and you will receive all the necessary information from us (online).
You will deliver a copy of your passport and permanent address to our office (online).
You will sign a reservation contract with our real estate agency and pay the reservation fee, which is usually 10% of the property price (can be paid in CZK after rounding or in EUR). This fee will be refunded to you in full upon successful conclusion of the purchase contract or, at your request, transferred to the seller as part of the purchase price (online or in person).
On the basis of your request, our office will send your details to the seller electronically so that he can prepare the purchase contract.
The seller or developer will send the purchase contract which, after approval by the buyer, will be ready for signing either at our office or at your home (the contract is always in Arabic with English translation) (online or in person).
According to the contract, you will make the payment of the purchase price, which you can pay to our account in CZK or EUR until the time of signing the purchase contract by the seller (it is not an escrow), or send it directly to the seller's or developer's account in the currency in which the property is sold.
Contracts signed by the buyer are sent to the seller or developer.
The developer signs the contracts and sends a copy of the signed contract as confirmation of receipt of your payment.
Once payment is credited to the seller's or developer's account, the original signed contract of sale is promptly sent to our office where it is ready for personal collection or is sent to the address of your choice at the buyer's expense.
At this point, the reservation fee will be refunded in full if it has not already been included in the total purchase price at your request, as the transaction has been successfully completed.
The final step is the acceptance of the property. The date of taking possession of the completed property will be communicated directly to you by the seller (developer) to your email address.

Other formalities, such as certification of contracts, registration of the property with the Egyptian authorities, etc., are not mandatory for the buyer. These services must be booked with an Egyptian lawyer after the acceptance of the property, if desired. It is important to choose a lawyer you fully trust and have good experience with. We will be happy to arrange legal services with a certified lawyer.
This option is an exclusive service that allows the buyer to complete the purchase of the property without the need to travel, while ensuring maximum security for the entire transaction. If any point of this procedure does not suit the buyer, this service cannot be provided and the buyer can use the standard procedures under points 1 and 2.

Payment in CZK with cashless conversion to EUR or USD is made through an accredited contract exchange office using VIP exchange rates.

The price of services in this option is 16 000 CZK / 670 EUR (it is not a commission and the service is provided only at the request of the buyer). We do not provide this service free of charge or individually.

All of these costly and risky tasks can be done by the buyer independently, but please note that if there is a minor error in entering the international payment order or address, the payment or parcel may be returned to the sender after approximately 14 days + a new attempt to send for another 10 days, which would mean non-compliance with the terms stated in your contract and high penalties or loss of the property.

For more information please contact me by Email: info@mojenemovitostumore.cz or by phone: 774 804 388, I will be happy to answer any questions you may have.