Steuern & Kosten
Capital Gains Tax (CGT)
This operates on a threshold basis for individuals, depending on the profit made, as follows:
£500 or less: 0%
£500 - £2000: 10%
£2000 - £4000: 15%
£4000 and above: 20%
Rental Income Tax
As with Capital Gains Tax this operates on a threshold basis, depending on the profit made annually, as follows:
£500 or less: 0%
£500 - £2000: 10%
£2000 - £4000: 15%
£4000 and above: 20%
Inheritance Tax (IHT)
There is no inheritance tax in Egypt
VAT
All our properties include Egyptian VAT
Closing Costs / Completion Costs
Most costs at closing operate on a per square metre basis
Notary Fees: £50 [Under 100 qm up to £200 [Over 300qm
Lawyers Association Charge: 0.5% of property price
Paperwork and misc. extras: £70
Legal Fees: £769 (Approx.)
We therefore recommend that you budget around £1000 total for an average 2 bedroom apartment.
Ongoing Taxes/Charges
Real Estate Tax – Calculated on estimated rental value, currently calculated from the countrywide average.
Expect to pay around £40 per annum.
Community Fees / Maintenance Charges
These costs are usually decided by the community of owners based on the budget allocated to maintenance of the development. As a general rule of thumb, expect to pay around £7/qm; in Hurghada.
Electricity
The average electricity bill is £10 (small apartment) - £150 (Large Villa) per month.
Water
Average water bills are reported to be around £5 per month.
Telephone/Internet
An average pay-as-you go phone, used locally should cost around £20/month in call charges.
To install internet, you must also install a land line £6/month. The internet charge is around £9/month.
Repatriation of Funds
There are no restrictions on transferring your money out of Egypt.
Freehold/Leasehold
All of our properties are freehold unless clearly stated otherwise.
Residency/Purchaser Requirements
In order to complete on your property, you will need to register with the local authorities. This is a quick, simple process for EU/U.S. citizens which we will assist you with, or set up on your behalf via Power of Attorney.
Bank Account in Egypt
This is not required for your property purchase. If you wish to have a bank account in Egypt this can be easily set up in around 15 minutes.
Work Permit / Employment
If you are under a contract to work with a company, you will be legally allowed to work for the duration of your contract. In order to obtain permanent position to work and/or to run your own business, you will need to register an Egyptian limited company. This will cost around £600, including share capital and setup costs.
Medical Insurance / Health Insurance
One time private treatment in Egypt is not expensive. However, you can also obtain permanent private health insurance for around £300 per year.
Education
There are a selection of English speaking education alternatives in Hurghada. The American school charges around £1,500 per child, per year.
Visas
Tourist Visas to Egypt are automatically granted for 30 days at a time.
It is a simple process to extend this to 9 months by submitting copies of your passport and a small fee of £7. Therein it is necessary to renew this every 9 months.
Property Ownership Rules for Foreigners
Foreigners are permitted to own up to 2 properties in Egypt, with total surface area of less than 4,000 qm; There is no limited on how many off-plan properties a foreigner can own, as long as they are “flipped” prior to completion. To own more than 2 completed properties it is necessary to register an Egyptian company, which is a simple process.
