Buying and owning property in Cairo as a foreigner

Authored by the expert who managed and guided the team behind the Egypt Property Pack

Yes, the analysis of Cairo's property market is included in our pack

Who is the author of this content?

SANDS OF WEALTH

A team specialized in real estate investing in MENA countries (Morocco, UAE, Oman, etc.)

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Cairo. If you'd like to learn more about us, you can check our presentation page.

What types of property are foreigners actually allowed to buy in Cairo, and how does that differ from locals or other nationalities?

Foreigners can purchase residential, commercial, and touristic properties in Cairo, but face stricter limitations than Egyptian nationals.

The Egyptian government restricts foreign ownership to a maximum of two residential properties per person across the entire country. Each property cannot exceed 4,000 square meters in size. You can choose between freehold ownership and 99-year leasehold arrangements (usufruct), with the latter being more common in new developments and tourist areas.

Commercial and touristic units are available for foreign purchase, though business-linked properties may require special government approval. New developments in areas like New Cairo and the New Administrative Capital often offer more flexible ownership structures for international buyers.

Foreign buyers cannot own agricultural land or property in border zones and strategic security areas. Unlike Egyptian nationals who can own land directly, foreigners typically own only the building or unit while the land remains under government or local entity lease arrangements.

It's something we develop in our Egypt property pack.

Do foreigners need residency, a visa, or any special permits to buy and hold property in Egypt?

Yes, foreigners need at least a valid residence visa to register and own property in Cairo as of September 2025.

Egypt offers residency by investment for property buyers who meet specific value thresholds. Purchasing property worth $200,000 or more qualifies you for a 3-year renewable residency permit. If your investment reaches $400,000 or higher, you can obtain a 5-year renewable residency permit.

Properties located in antiquity-protected zones or strategic areas require additional government clearances beyond standard residency requirements. The Ministry of Interior and Council of Ministers must approve purchases in certain sensitive locations.

Tourist visas alone are insufficient for property ownership registration. You must upgrade to a residence visa status before completing the ownership transfer process.

Is it necessary to be physically present in Egypt to purchase property, or can it be done remotely?

Physical presence is not strictly mandatory for purchasing property in Cairo, but it requires careful legal preparation.

You can complete the transaction remotely by establishing a power of attorney (POA) with a trusted Egyptian lawyer or licensed agent. The POA must be properly notarized and legalized in your home country before use in Egypt.

Remote purchases carry higher risks, so visiting Cairo for property viewing and due diligence is strongly recommended. Many foreign buyers choose to visit for initial property selection, then handle final paperwork remotely if needed.

Your appointed lawyer or agent can handle document submission, government clearances, payment processing, and registration on your behalf through the POA arrangement.

What is the step-by-step process for buying property in Cairo, and what documents are required along the way?

Is hiring a lawyer mandatory for foreigners, and what role do they usually play in the transaction?

Hiring a lawyer is not legally mandatory but is highly recommended for foreign property buyers in Cairo.

Lawyers conduct comprehensive due diligence to verify clear property titles, check for liens or disputes, and ensure the property is not in a restricted zone. They draft and review all contracts to protect your interests and ensure compliance with Egyptian property laws.

For remote purchases, lawyers arrange and manage power of attorney documentation, handle all government submissions, and coordinate with relevant ministries for required clearances. They also shepherd the registration process through the Real Estate Publicity Department.

Legal representation significantly reduces risks of fraud, incomplete titles, or regulatory violations. Given the complexity of Egyptian property laws for foreigners, lawyer involvement typically saves buyers from costly mistakes that could jeopardize their investment.

Don't lose money on your property in Cairo

100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.

Download Now

What taxes, fees, and hidden costs come with buying, owning, and eventually reselling property in Cairo?

Property transaction costs in Cairo typically range from 4-6% of the total property value, with additional ongoing ownership expenses.

Transaction fees include a 2-3% registration fee paid to the government, 1% notary fee for document authentication, and lawyer fees typically ranging from 1-2% of property value. Real estate agent commissions add another 1-3% to your costs.

Annual ownership costs include property tax calculated at approximately 10% of the assessed "current rental value" (not purchase price). You'll also pay utility registration fees and maintenance charges if buying in a compound or managed development.

When reselling, expect to pay 2.5% capital gains tax on any profit made from the sale, plus potential brokerage commission if using an agent. Hidden costs often include power of attorney legalization fees, document translation expenses, and government clearance processing fees.

Are mortgages available for foreigners, and if so, under what rates and conditions, and what are the tips to actually secure one?

Mortgages are available for foreigners in Cairo but with more restrictive conditions than those offered to Egyptian nationals.

Foreign buyers typically need to provide 30-40% down payment, compared to 20-25% for locals. Maximum loan-to-value ratios are generally capped at 60% for non-residents. Banks require verified income documentation, residence or work permits, and the property must be from an approved developer list.

Interest rates for foreign borrowers are typically 2-4% higher than local rates, with most loans denominated in Egyptian pounds (EGP). Some banks offer USD or Euro-denominated options for qualified applicants with foreign income sources.

To secure approval, obtain pre-approval before property hunting, work with banks experienced in expat transactions like CIB or HSBC Egypt, and ensure your chosen property is on the bank's approved list. Providing substantial documentation of stable foreign income significantly improves approval chances.

Which neighborhoods in Cairo are most popular with foreigners, and where are the best areas for living, renting out, or long-term capital appreciation?

Zamalek stands as the most popular neighborhood among foreign residents, offering a cosmopolitan atmosphere with tree-lined streets, upscale dining, and proximity to downtown Cairo.

Maadi attracts families and long-term expatriates with its quieter residential feel, international schools, and established expat community. The area offers good rental demand from diplomatic families and international business professionals.

New Cairo and 5th Settlement provide modern living with gated compounds, shopping malls, and business districts. These areas show strong capital appreciation potential due to ongoing infrastructure development and proximity to the New Administrative Capital.

For investment purposes, New Cairo, 6th of October City, and the New Administrative Capital offer the highest growth potential. Zamalek and Garden City provide stable rental income from the diplomatic and international business community, while Sheikh Zayed attracts upper-middle-class Egyptian families.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Egypt versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What does the latest data say about livability, rental yields, rental demand, tourism numbers, and growth forecasts in Cairo's property market?

Cairo's property market shows strong fundamentals with rental yields ranging from 6-8% in central areas and up to 10% in New Cairo compounds during peak demand periods.

Zamalek, Maadi, and New Cairo consistently rank highest for livability among foreign residents and upper-middle-class locals. These areas offer superior infrastructure, international amenities, and established expat communities.

Rental demand remains robust from diplomats, NGO workers, international businesses, and affluent local families. The diplomatic quarter in Garden City and Zamalek maintains particularly stable rental demand with lower vacancy rates.

Tourism recovered strongly post-2024, boosting short-term rental opportunities in Nile-side locations and historic areas. The New Administrative Capital project is driving long-term growth forecasts, with major government and business relocations expected to increase property values in surrounding areas like New Cairo over the next 5-7 years.

How do property prices break down by city and region, and what are the latest average price ranges?

What are the most common mistakes and pitfalls foreigners face when buying property in Cairo, and how can they avoid them?

The most frequent mistake is inadequate due diligence on property titles and legal status, often leading to disputes or ownership challenges later.

Many foreign buyers attempt to purchase prohibited property types like agricultural land or properties in restricted border zones, resulting in transaction cancellation and lost deposits. Always verify property classification and location restrictions before committing funds.

Failing to register contracts officially with government authorities creates weak ownership claims that become problematic during resale or inheritance. Ensure all documentation follows proper legal channels through the Real Estate Publicity Department.

Buyers frequently underestimate ongoing costs like annual property taxes, maintenance fees, and utility expenses. Budget for approximately 2-3% of property value annually for carrying costs beyond the initial purchase.

It's something we develop in our Egypt property pack.

What are the fiscal implications for foreigners, including income tax on rentals, capital gains, and any double-taxation considerations?

Foreign property owners in Cairo face Egyptian income tax on rental income at rates ranging from 10-22.5% depending on net profit levels.

Rental income taxation allows deductions for legitimate property expenses including maintenance, management fees, insurance, and depreciation. Keep detailed records of all property-related expenses to minimize taxable income.

Capital gains tax applies at 2.5% on profits realized from property resale. The tax is calculated on the difference between sale price and original purchase price plus documented improvements.

Egypt maintains double taxation agreements (DTA) with many countries, potentially providing relief depending on your home country's tax laws. Consult with tax professionals in both Egypt and your home country to optimize your tax position and avoid double taxation on the same income.

It's something we develop in our Egypt property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Andersen Legal - Can Foreigners Own Property in Egypt
2. Buildix Real Estate - Legal Process Guide 2025
3. Youssry Saleh Law Firm - Foreigners Ownership Guide
4. Consortio Law Firm - Property Ownership Rules
5. Sands of Wealth - Egypt Real Estate for Foreigners
6. Wise - Buying Property in Egypt Guide
7. Backyard - Property Rules for Foreigners
8. Iwan Developments - Real Estate Buying Guide
9. Egypt Real Estate Ministry - Expat Mortgages
10. CIB Bank - Overseas Mortgages