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Legal information for home buyers and investors in Sharm el Sheikh Egypt

According to the act of the Prime Minister of Arab Republic of Egypt no. 548 from 5/4/05, foreigners are
buying properties in Sharm el Sheikh for 99 years leasehold (usufruct)

BUYING PROCESS

The buying process is mainly divided into two parts:-

1. Sale Contract

The contract is signed by both parties (the buyer & the seller) Before we decide to sign the contract we
have to make sure that the real estate agents are registered with Dept of Real Estate in notary. For that
reason the selling part should present the original documents confirming ownership as well as present
documents confirming the Real Estate mortgage (official register of pledges and mortgages in the Public
Notary in district, which includes property) Lawyers who represent the buyers side should also check that
any tax due has been paid and if there are any other tax liabilities.

The contract (agreement) itself should be in two languages. This protects the buyer from any kind of
misunderstanding with the Arabic version of the contract. Both versions of the contract should
semantically identical and contain the same clauses.

2. Registering the buyer in the Real Estate Department.

This Department is situated in El Tur (100km from Sharm el Sheikh) and takes from 3 to 6 months to
complete. Present the documents at the registrar office in
El Tur City. The register office sends the documents to Cairo central registration office for foreigner. To
transfer property ownership - low death succession duty is 3% of the value of the real estate based on
the local valuation. After verification they send back the documents to El Tur City. Documents are then
stamped..

Notice !!


In a country where real estate registration issues are so complicated as in Egypt, it is really important to
have a reliable agent and lawyer, who will conduct a search and to advise on the legality of the purchase.

The Prime Minister

After perusing the constitution and perusing :
Law no. 143 of 1981 concerning Desert lands:

Law no. 7 of 1991 concerning the state private properties:

Law no. 4 of 1994 concerning environment protection:

Law no. 230 of 1996 concerning regulation of foreigners' ownership for built properties and empty land
plots;

Law no. 94 of 2005 concerning amending some regualtions for joint stock companies, limited partnership
stock companies, and limited liability companies, originally stipulated in law no. 159 of 1981, and law of
investment guarantees and incentives originally stipulated in law no. 8 of 1997;

President's Decree no. 560 of 1986, concerning securing the neighboring area to western borders of
Egypt.

President's Decree no. 413 of 1986, concerning securing the neighboring area to southern borders of
Egypt, amended by president's decree no. 99 of 1999

President's Decree no. 151 of 2001, concerning securing the neighboring area to Eastern borders of
Egypt.

President's Decree no. 152 of 2001, concerning fixation of strategic desert areas with military
importance;

President's Decree no. 153 of 2001, concerning establishment of the National Institution for planning the
State's Land Usage;

President's Decree no. 153 of 2001, concerning fixation of state lands usage until 2017;

President's Decree no. 731 of 2004, entitling the military landscape department to prepare the required
database for land plots needed for the various activities of the ministries concerned, among the map of
investment opportunities;

President's Decree no. 548 of 2005, concerning foreigners' rights' of freehold and usufruct in certain
areas of Egypt;