Can Foreigners Own Property in Egypt? The 2026 Legal Guide

Yes. Foreigners can own residential real estate in Egypt. The framework is set by Law No. 230 of 1996 on the Organization of Foreign Ownership of Built Real Estate and Vacant Land, amended in subsequent years and supplemented by separate rules for desert land and for property held inside the Investment Law framework.

This guide covers the rules as they apply to a private foreign buyer purchasing residential property.

The headline rules under Law 230 of 1996

- A foreign individual or legal entity may own up to two properties anywhere in Egypt for personal residential use.

- Each property may not exceed 4,000 square meters in area.

- The property must not be classified as an antiquity under the Antiquities Protection Law.

- Once acquired, the foreign owner must hold the property for at least five years before selling or transferring it, unless the Prime Minister grants a specific exemption.

These limits apply to the foreign individual or entity, not per project. Two flats in different cities count as two of the two allowed properties.

Exceptions and looser regimes

Several routes allow ownership beyond the Law 230 caps:

- Investment Law. Property used for an approved business activity is not subject to the two-property cap. This is the route most commonly used by foreign developers and operating companies.

- Desert Land Law. A 2024 amendment to the Desert Land Law liberalized rules for foreigners to own land for investment projects, beyond previous ownership ceilings.

- Citizenship by Investment. Foreign buyers who acquire property of USD 300,000 or more in approved projects may apply for Egyptian citizenship under the program administered by the General Authority for Investment, subject to a non-refundable contribution.

Buying restrictions by location

Some areas, particularly in the Sinai Peninsula, are subject to additional restrictions or require a usufruct (right of use) for up to 99 years instead of full ownership. The location of the parcel matters. Sharm El Sheikh and Hurghada are inside the foreign-ownership regime, but specific sub-areas may still require special clearance.

The buying process step by step

1. Reservation form and deposit. Typically 5 to 10 percent. Read this document carefully because the main contract is often a schedule to it.

2. Sale and purchase contract. Signed before or after the developer's lawyer has confirmed land allocation. Foreign currency funds must enter Egypt through a state bank, and the bank confirmation will be needed for registration.

3. Customary contract (Orfi). Many older transactions use only this informal contract. It is enforceable between the parties but does not, on its own, prove registered ownership against third parties.

4. Signature validation (Sahha Tawqee). A faster route used by many new developments, in which the buyer's and seller's signatures on the contract are validated by a court. This is more secure than a plain customary contract but is still less than full registration.

5. Full registration (Shahr El Aqari, the Green Contract). This is the highest form of ownership proof in Egypt. The Real Estate Publicity Department (Shahr El Aqari) maintains the registry. Registration involves a Ministry of Interior security clearance for the foreign buyer, which takes two to four months, followed by the registration itself, which takes 30 to 60 days.

Documentation foreign buyers need

- Passport copy.

- Visa or residence status documentation, depending on the transaction.

- Source of funds evidence and bank wire confirmation from a state-licensed Egyptian bank.

- Tax registration card for the buyer.

- Power of attorney if the buyer is not present, notarized and apostilled in the country of origin.

Taxes and fees

- Property registration fee: capped at EGP 2,000 by post-2017 reforms.

- Real Estate Transaction Tax: 2.5% of the agreed price, paid by the seller on resale.

- Annual Property Tax: 10% of the deemed rental value, with significant exemptions for properties below a stated annual rental value.

- Stamp duties on contract documentation.

The five-year lock and how it works in practice

The five-year holding requirement under Law 230 begins on the date of registered acquisition. A foreign owner who needs to sell earlier must apply to the Prime Minister for a specific exemption, which is granted on a case-by-case basis and is not routine. Buyers who acquire through the Investment Law route or under desert land rules may not be subject to the same lock.

What this means in practice

The legal regime is permissive. The friction is in the process: long Ministry of the Interior clearance times, the gap between customary contracts and full registration, and the foreign-currency funding requirement. Buyers who rely only on a customary contract leave themselves exposed to competing claims if the seller's chain of title is defective.

Bektu publishes verified developer records and registration status data to help foreign buyers cross-check what they are told at a sales office against the underlying paperwork.