Legal Advice – Buying Property in Sharm El Sheikh
Process for registration at Sharm El Sheikh city (3 to 6 months):
- Present the documents in the register in Cairo.
- Cairo court’s
- Documents are stamped after Signature Validity verification By Court.
ADVANTAGES OF BUYING PROPERTY IN SHARM EL SHEIKH:
- Tax breaks (no stamp duty).
- No capital gain tax on resale.
- No sales tax.
- Low death succession duty 7% (to transfer property ownership).
- Tax benefits (extremely low taxes).
- Banks: easy to open accounts and to transfer funds.
- 0% tax on bank interest.
There are 3 types of registration in El Tur city and all of them will give you a blue/green stamped document:
- Preliminary sale contract can be registered for foreigners buying properties in Sharm El Sheikh only for properties without land and Egyptians can register land and properties.
- Contract validity, which proves ownership (like registration for Egyptians) only for Egyptians.
- Signature validity does not grant ownership but grants validity of the signatures on the document and it is a form of legal protection (which is commonly used for foreigners).
FREQUENTLY ASKED QUESTIONS ABOUT BUYING A PROPERTY IN EGYPT:
A- What are the potential problems of buying property in Egypt?
The property registry in Egypt is out of date and incomplete, and many believe that only 10% of the properties in Egypt are actually registered. Naturally, this can create a problem for the property investor. However, resorts like Sharm El Sheikh are far more geared up to the international property market. Furthermore, those considering investing in property in Sharm El Sheikh would be wise to do so through an established and reputable estate agent.
B- Will I need a local lawyer?
In a country where real estate registration issues are as complex as in Egypt, it is really critical to have a lawyer conduct search and to advise on the legality of the purchase, even if you are buying a brand new property from a well-established developer, who can register only after the project is completely built through a document called Dedication Resolution (Karar Takhsees). with ROYAL SHARM PROPERTY we have prepaid a full Due Diligence reports Through a specialized solicitor secures our client’s investments.
C- Will I be able to mortgage?
Local mortgages are almost impossible to obtain, so you will need to fund the purchases yourself or via the same country mortgage. All the Off Plan properties with strong, reputable developers are INTEREST-FREE and financed for a minimum average of 3 years.
GOOD ADVISE
There is no restriction on selling before completion naturally, you need to be prepared to wait for the property to be completed before you can move in.
Royal Sharm Properties’ customer care team will keep you updated on the progress of your property at all times. There’s always a ROYAL SHARM PROPERTY representative to answer your questions.
There is no restriction on selling properties before completion, except it is stated in the sale contract.
If you intend to sell on before completion rather than move in yourself or let the property, don’t overstretch yourself – just in case you eventually decide not to sell off-plan and end up keeping the property.
WHERE CAN I FIND MORE INFORMATION ON EGYPT?
Embassy of Egypt:
26 South Street, London W1K 1DW
Tel.: +44 20 74993304/2401
www.egypt.embassyhomepage.com
British Embassy Cairo
7 Ahmed Ragheb Street
Garden City, Cairo:
Tel.: +2 (02) 2791 6000
www.britishembassy.gov.uk/egypt
commercial.cairo@fco.gov.uk
NEW LAW NUMBER 14 DATED 13 SEPTEMBER 2012 FOR PROPERTY OWNERSHIP IN SINAI
New law Number 14 year 2012 issued on 13 September 2012 Concerning the Property ownership in Sinai
This law will be activated from the date of issue 13 September 2012 and will apply only on any purchases that will take place after the date of issue. Any purchase prior to this date is governed according to the existing law or decree on the date of purchase, and is not retrospective.
Clause 13:
Possibility with an order from the board members of Sinai after the acceptance of the Ministry of Defense, Interior, Intelligence the following:
A) Egyptian and foreign individuals and corporations own the buildings in an area without owning the land that it is built on. This applies to the land which is owned by the developer on a freehold basis.
Amendment of Law 14 (15 August 2015)
Clause (3):
The leasehold is not valid except according to this law on the land and properties and agreements concluded to this purpose, and to include these agreements the terms and conditions controlling this lease and especially the follows:
- The leasehold period is up to 50 years, according to whether the activity is and it’s possible to renew this period to more periods, but not exceeding 75 years after the approval the board of directors and the leasehold will be terminated in the following cases:
– The expiry of the legal entity for the leaseholder for any reason
– Death of the leaseholder
– Expiry of the leasehold without renewing
– Expiry of the full period for the leasehold 75 years
Possible in case of death of the leaseholder and after the approval of the ministry of defense and interior and the intelligence and the board of directors to continue the lease with the legal heirs or some of them according to their discretion, with the same terms and conditions of the original contract based that these contracts have clauses within this law to inherit.
Possible with a decree from the president of Egypt and after the approval of the authorities and the ministry to treat selected Arab countries’ citizens the same treatments within this law in regards to the residential units.
