Egyptian Cabinet Tightens Rules for Foreign Real Estate Ownership
The Egyptian Cabinet has finalized drafting an amendment to law no.230/1996 regulating the ownership of real estate and lands by foreigners. The amendment will require foreigners to transfer the payment for real estate purchases to one of the fully state-owned banks in a foreign currency. The amendment also restricts foreigners who are applying for citizenship through real estate purchases to units offered by the government or state-owned developers. The value of the unit must be at least $300,000, or the foreigner must invest at least $350,000 in a project. The financial value of the purchase must be transferred from abroad in accordance with the rules set by the Central Bank of Egypt. The amount of money must enter Egypt through one of the customs outlets and be registered at customs. Investors applying for citizenship must deposit the $350,000 at the state’s treasury.
Key Highlights
- Foreigners must transfer the payment for real estate purchases to one of the fully state-owned banks in a foreign currency.
- Foreigners applying for citizenship through real estate purchases are restricted to units offered by the government or state-owned developers.
- The value of the unit must be at least $300,000, or the foreigner must invest at least $350,000 in a project.
- The financial value of the purchase must be transferred from abroad in accordance with the rules set by the Central Bank of Egypt.
- The amount of money must enter Egypt through one of the customs outlets and be registered at customs.
- Investors applying for citizenship must deposit the $350,000 at the state’s treasury.
Implications of the Amendment
The amendment will make it more difficult for foreigners to purchase real estate in Egypt. It is also likely to lead to an increase in the price of real estate, as developers will be able to charge more for units that are eligible for citizenship.
Next Steps
The amendment is still in the drafting stage, and it is not yet clear when it will be finalized. Once it is finalized, it will be submitted to the House of Representatives for approval.
