Buying Property in Egypt as a Foreigner, Laws, Steps and Risks

Housing11 Oct 20266 min read

A house key, a contract and a small model of a building, a foreigner buying property in Egypt

Apartments for sale

A foreigner can buy a flat in Hurghada or Cairo, but with limits and special payment rules. Here is what the law allows, how a purchase works and where buyers most often lose money.

What the law allows

The main law on property ownership by foreigners in Egypt is Law No. 230 of 1996. Under it, a foreigner may own housing for themselves and their family: no more than two properties across the country, each up to 4,000 square metres. Buildings protected under the antiquities law cannot be bought.

In 2023 the government decided that the limit on the number of residential units does not apply if the purchase is paid in foreign currency transferred from abroad. The Egyptian Prime Minister has clarified that foreigners may buy residential units, not land.

The rules have been changed by government decisions, and lawyers interpret them differently. Before buying, check the current procedure with an Egyptian lawyer or at the Shahr Aqari, the real estate registry.

Where buying is banned or difficult

Hurghada and El Gouna are on the mainland coast of the Red Sea, and the general rules apply there. The restrictions concern other places.

Agricultural land. Foreigners are not allowed to own it.
Building plots. The authorities stress that foreigners buy residential units, not land. Exceptions exist for investment projects under the investment law.
Sinai. A separate law from 2012 applies here, and Sharm El Sheikh, Dahab and the Gulf of Aqaba zone have their own rules. In some cases a foreigner can get only a long-term right of use instead of ownership, so check the status of each property separately.
Military and border zones, nature reserves and archaeological sites.

Why registration at the Shahr Aqari matters

You become the owner only after registration at the Shahr Aqari. A signed contract, full payment or keys in your hands do not by themselves make you the owner.

Many flats in Egypt are sold on preliminary contracts or with a court validation of the signature (in Arabic «sihhat tawqi»). Such a document confirms the signature of the seller, but it is weaker than full registration and does not guarantee that nobody else has a claim to the flat. Full registration can take several months, but it gives the best protection.

Keep in mind that, as a general rule, a foreigner can sell the flat only five years after registration.

How to pay, currency and bank

Since 26 March 2024, to register a purchase a foreigner must prove that the full amount was transferred from abroad in foreign currency to a bank supervised by the Central Bank of Egypt. If the contract price is in pounds, its equivalent in foreign currency is transferred at the exchange rate.

Do not pay cash in hand and do not transfer money to the personal cards of middlemen. Keep the bank confirmations of the transfer: you need them both for registration and to legally take money out later from a sale or rent.

Buying step by step

Choose a property and find out which document the right of the seller is based on: full registration, a contract with the developer or a court validation of the signature.
Hire an independent lawyer, not one recommended by the seller. The lawyer will check the chain of owners, debts, seizures, the building permit and violations.
Look at the electricity meter. A «code» meter is installed in buildings whose status has not been settled, and that is a reason to ask questions.
Sign a preliminary contract and pay a deposit. Set out the amount, the deadlines and what happens to the deposit if the deal falls through.
Transfer the money from abroad through a bank and get a confirmation of the transfer.
Sign the final sale contract and submit the documents for registration at the Shahr Aqari.
Transfer the meters and the contract with the compound management company to your name.

Buying in a building under construction

Many foreigners buy flats at the construction stage, in instalments from the developer. It is cheaper, but the risk is higher: the building may be finished late, the layout or finishing may change, and maintenance after completion may be poor.

There is no special law yet that protects the money of off-plan buyers. In 2026 the government is preparing a draft law on developers with separate accounts for each project and buyer protection funds, but it has not been adopted. So for now your main protection is the contract. Check that it includes the following.

An exact completion date and a penalty for delays.
The land documents and building permit of the developer.
The right to cancel the contract and get your money back if the building is not completed on time.
What the finishing includes and how much the compound maintenance costs.

Residency through property

Owning a home can be a basis for a residence permit. Under a 2023 Interior Ministry decision, as lawyers describe it, a home worth from 50,000 dollars gives a one-year residence permit, from 100,000 dollars a three-year one and from 200,000 dollars a five-year one. The flat must be registered in your name and the payment must be traceable through a bank.

The amounts have changed more than once, and different sources give different figures. Before buying for the sake of residency, check the conditions with the Passports, Immigration and Nationality Administration. Residency through property does not give the right to work. Read about other types of iqama in iqama in Egypt.

Common buyer mistakes

Buying on a preliminary contract alone without checking who the real owner is.
Paying in cash or through a middleman, so the flat later cannot be registered.
Expecting a residence permit to be granted automatically after the purchase.
Buying for a quick resale, although you can only sell five years after registration.
Trusting a glossy developer presentation without checking its past projects.