How to Buy an Apartment in Hurghada as Foreigner: A Complete Guide

Purchasing property abroad can be a daunting endeavor, especially for foreign investors. However, if you’re considering acquiring an apartment in the picturesque coastal city of Hurghada, you’ll be pleased to know that the process is relatively straightforward. Under Law No. 230 of 1996, foreigners can legally buy apartments in Hurghada, including up to two residential properties, making it an attractive destination for real estate investment.

This guide will walk you through the essential steps and requirements for foreign buyers. Understanding the legal framework, necessary approvals, and the financial implications will help ensure a successful acquisition of your new home or investment property in Hurghada.

Understanding the Legal Framework

As stated, Law No. 230 of 1996 permits foreigners to purchase residential properties in Hurghada, specifically designated as a freehold zone. You can own up to two units, usually not exceeding a combined area of 4,000 m². The first step in the buying process is to ensure that the property is REPD-registered, as this signifies legitimate ownership and safeguards against potential legal issues.

Key Steps to Purchase an Apartment in Hurghada

Due Diligence: Hire a qualified lawyer to verify the title chain, confirm that there are no liens or building violations, and ensure the seller has the right to sell the property. Prioritize properties registered with the Real Estate Publicity Department (REPD) over possession contracts for greater security.
Funds Transfer: It’s necessary to pay in foreign currency (USD, EUR, GBP) through an Egyptian bank to maintain transparency in your transaction. Ensure your funds are transferred from a non-Egyptian account, as this is a requirement for documentation.
Approvals: You must submit your passport, a contract, and proof of your funds to the Ministry of Justice for security clearance. Additionally, obtaining a Tax Card (Muhsid) is mandatory.
Signing and Registration: After receiving approvals, sign a preliminary contract, followed by the final Green Contract at a notary or publicity office.
Post-Purchase Considerations: A resale restriction of five years applies, but exemptions might be possible in certain investment areas. Register for residency options according to your investment level, which can provide benefits for living in Egypt.

Fees and Taxes for Foreign Buyers

When purchasing an apartment in Hurghada, it’s essential to account for various fees and taxes that typically range from 7% to 10% of the property value:

Fee/Tax Type	Estimated Cost	Details
Registration & Stamp Duty	2.5-3%	Includes notarization and title transfer by REPD.
Government Approval/Security Clearance	1-2% + $500-1,200	Processing time at the Ministry can take between 3-6 months.
Legal & Notary Fees	1-2%	Costs for hiring a lawyer and contract fees.
Tax Card & Misc.	0.5-1%	Covers costs for obtaining the Muhsid and utilities clearance.
Ongoing Annual Taxes	Low (0.1-0.5%)	This applies after property ownership.

Practical Tips for Foreign Buyers

Engage a reputable local lawyer for assistance in navigating the legal aspects.
Ensure clear communication with your bank and stay updated about currency regulations.
Familiarize yourself with the local market and average property prices to make informed decisions.
Consider long-term plans for your property, including rental options to leverage your investment.

Frequently Asked Questions (FAQs)

Can foreigners buy property anywhere in Egypt?

Foreigners are allowed to buy properties in designated areas, including Hurghada, under specific laws. In most cases, they can own up to two residential properties.

How long does the buying process take?

Generally, the full approval process can take between 3 to 6 months, especially due to government clearance.

Are mortgages available for foreigners?

Mortgages for foreigners are limited and often come with high-interest rates. Most foreign buyers prefer paying cash or utilizing developer payment plans.

Conclusion

Buying an apartment in Hurghada as a foreigner is entirely feasible with the right knowledge and preparation. Ensure you understand the legalities, budget for fees, and engage professional assistance to make the process smoother. For personalized guidance and support throughout your property purchase journey, contact MAMO Property today.

This article is for informational purposes. Consult a legal expert for personal advice.