If you are looking for flat for sale in Hurghada, buying a property in Egypt is very straightforward. For Free Company is here to help you all the way, with anything you may need.
PROPERTY PURCHASING PROCESS IN EGYPT
Under the law of ARE, to buy property in Egypt, foreign buyers are sufficient to provide only a passport.
Reserving your property
Once you have chosen your property, your first step is to sign a reservation agreement including deposit. This will hold the property for 15 days until you sign the sales contract. If the sale goes ahead, the reservation deposit will be deducted from the contract down payment. If the sale does not go ahead, the deposit is non-refundable.
Once signed, the sales contract is a legally binding contract which sets out the vendor, the name of the purchaser, the project name and location and the specific property. The contract also contains the terms of sale (the property price, order of payment, date of completion, rights and obligations of the parties, penalties and etc.).
Transferring property ownership
The procedure of transferring property ownershipis performed in the notary's office - Shahr Akari.
Once project be completed, the vendor takes collective registration procedure of transferring ownership of real estate to buyers who have paid full amount of purchased property and all other fees specified in the sales contract.
For buyers who did not participate in the collective registration procedure, the vendor prepares the Irrevocable General Power of Attorney (Taukil) on transfer of ownership of property. By Taukil the buyer has all rights and guaranties on purchased property, can manage and dispose it at own discretion and on its own behalf as well as has all rights to sell this property.
On the basis of a sales contract and Taukil, buyers can make the registration of transfer of ownership of purchased property which guarantees the inviolability of their property by the state.
Fees of transferring property ownership are payable only once at the registration. This figure will be reduced if byers make the collective registration procedure of transferring ownership.
Immovable Property Ownership Tax
There is no Immovable Property Ownership Taxin Egypt.
Electricity and water supply
Charges for electricity and water are payable monthly to the electricity authority of Egypt and the water Board authority respectively. These charges, depending on the consumption of each unit, are estimated at around $20-40 per month for normal usage.
Annual service charge
The annual service charge is calculated individually for each property project.
Capital Gains Tax
Capital Gains Tax is imposed on the sale of land and buildings within the boundaries of an Egyptian city at the rate of 2.5% of gross gains of the seller. However, if the transfer of ownership of property was not done, the seller is exempt from this tax.
There is no inheritance Tax in Egypt.
RESIDENCE PERMIT IN EGYPT
The owner of property worth more than $ 50 thousand is granted a residence visa. Property worth less than $50 thousand will need a one-year visa with the possibility of extension.