Authored by the expert who managed and guided the team behind the Egypt Property Pack
Everything you need to know before buying real estate is included in our Egypt Property Pack
This guide covers everything a US citizen needs to know about buying residential property in Egypt in 2026, from legal ownership rules and taxes to mortgages and IRS reporting.
We wrote it to be practical and easy to follow, so you can make confident decisions without wading through legal jargon.
We constantly update this blog post to reflect the latest regulations, exchange rates, and market conditions.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Egypt.
Can a US citizen legally buy residential property in Egypt right now?
Can I buy a home in Egypt as a US citizen in 2026?
As of early 2026, US citizens can legally purchase residential property in Egypt, including apartments, villas, townhouses, and resort chalets, as long as the property and its location comply with Egypt's foreign ownership framework under Law No. 230 of 1996.
The standard buying process involves selecting a property, signing a preliminary contract with the seller, paying via a bank transfer (often in foreign currency through a state-owned bank), completing due diligence on the title, and then registering the property at the local real estate registry office, which the government now aims to complete within ten days of submitting documents.
By the way, we've written a blog article detailing all the foreigner rights regarding properties in Egypt.
Are there many Americans buying property and living in Egypt in 2026?
As of early 2026, the US Embassy in Cairo estimates that nearly 60,000 US citizens reside permanently in Egypt, with hundreds of thousands more visiting each year, making the American community one of the largest Western expat groups in the country.
The highest concentrations of American property owners and expats in Egypt are found in Cairo neighborhoods like Maadi, Zamalek, and New Cairo (especially the Fifth Settlement compounds), as well as in Sheikh Zayed and 6th of October City on the Giza side, and in Red Sea resort towns like El Gouna and Hurghada.
The top three reasons Americans choose to buy property and relocate to Egypt are the very low cost of living compared to the US, the rich cultural and historical appeal of living in a place like Cairo, and the chance to be closer to family since many buyers are Egyptian-Americans returning to their roots.
The American expat community in Egypt appears to be stable to slowly growing, driven by remote work flexibility, continued Egyptian-American family ties, and Egypt's expanding new-city developments that attract international buyers with modern compounds and resort-style living.
Do foreigners have the same buying rights as locals in Egypt?
Foreigners in Egypt do not have the exact same buying rights as Egyptian nationals: they face a traditional cap of two residential properties per person (each limited to 4,000 square meters), a five-year holding period before resale, and extra documentation requirements, while US citizens specifically are treated the same as all other foreigners with no special advantage or disadvantage compared to, say, a British or Gulf buyer.
The main property types and locations that are off-limits or restricted for foreign buyers in Egypt include agricultural land (completely prohibited), military and border zones, and most notably the Sinai Peninsula (including Sharm El Sheikh and Dahab), where foreigners cannot own property outright and are instead limited to usufruct rights similar to a long-term lease of up to 75 years.
We cover all these things in length in our pack about the property market in Egypt.
Can I buy property in Egypt without a residence permit?
You do not need to be a resident of Egypt to buy property there: many foreigners, including Americans, purchase apartments and villas while living abroad, since Egypt's ownership laws are based on nationality rules rather than residency status.
The process for buying property in Egypt while living abroad typically involves hiring a local lawyer who handles negotiations and due diligence on your behalf, and you can sign documents remotely through a notarized and apostilled power of attorney that has been translated into Arabic.
Buying a home in Egypt does not automatically give you a visa or residency permit, but Egypt does offer renewable residency tied to property investment starting at around 50,000 USD, with longer durations available at higher investment thresholds of 100,000 USD and 200,000 USD.
The main practical challenge non-resident buyers face when completing a property purchase remotely in Egypt is the banking and payment process, because funds generally need to be transferred in foreign currency through a state-owned bank, and coordinating this from abroad often involves extra documentation, timing delays, and compliance checks.
Can US citizens own land in Egypt?
US citizens can own land in Egypt under certain conditions, but vacant land purchases trigger additional requirements including a mandatory obligation to start construction within five years, extra approval steps, and resale restrictions, which is why most foreign individuals focus on buying finished apartments or villas rather than raw plots.
In mainstream urban markets like Cairo, Alexandria, and Red Sea resorts, foreigners can obtain freehold-style ownership of units and associated land rights, while in the Sinai Peninsula, foreigners are limited to leasehold or usufruct structures (typically up to 75 years), making the ownership type depend heavily on location.
The specific geographic zones in Egypt where foreign land ownership is restricted or prohibited include the Sinai Peninsula (usufruct only, no freehold), military and border zones, agricultural land throughout the entire country (completely banned for foreigners under Law No. 15 of 1963), and any areas the government designates as strategically sensitive.
What documents will I need to buy in Egypt?
The essential documents a US citizen needs to purchase property in Egypt include a valid passport with an entry stamp, proof of funds and source of funds documentation (especially for money coming from abroad), and if buying remotely, a notarized power of attorney that has been apostilled and translated into Arabic.
A local tax identification number is not strictly required to sign a purchase contract in Egypt, but you may need one for the registration and tax payment steps, and your lawyer can usually help you obtain one quickly as part of the closing process.
A local bank account in Egypt is not always mandatory to complete the purchase itself, but it is frequently very helpful for paying property taxes, utility deposits, and ongoing fees, and it also creates a cleaner audit trail that Egyptian authorities increasingly expect.
Foreign buyers in Egypt are typically required to provide proof of funds showing where the money is coming from (bank statements, income evidence), and while a local Egyptian address is usually not required, some institutions may ask for a contact address in Egypt, which can be your lawyer's office.
We have a whole section dedicated to all the documents you need in our Egypt property pack.
Can a foreign-owned company buy property in Egypt?
Yes, foreign-owned companies can purchase residential property in Egypt, and in fact corporate structures sometimes offer broader rights than individual ownership because the two-property cap under Law No. 230 of 1996 applies to individuals, while companies registered under the Investment Law can acquire property needed for their licensed activities.
Americans do sometimes use company structures to hold property in Egypt, typically by forming a local Egyptian LLC or joint-stock company, but this approach is more common among investors with multiple properties or commercial projects rather than someone buying a single apartment for personal use.
Owning property through a company structure in Egypt does not reliably lower taxes compared to personal ownership, and the main reasons people choose it are to hold multiple properties beyond the two-unit individual cap, to separate liability, or to simplify estate planning.
The main drawback of using company ownership for residential property in Egypt is the increased complexity and cost: you will need to maintain corporate filings, handle additional accounting, and from the US tax side, holding Egyptian property through a foreign entity can trigger extra IRS reporting requirements (like Form 8938 and potentially Form 5471) that would not apply if you owned the property directly in your name.
Thinking of buying real estate in Egypt?
Acquiring property in a different country is a complex task. Don't fall into common traps – grab our guide and make better decisions.
What taxes and fees will I pay in Egypt in 2026?
What are buyer taxes in Egypt in 2026?
As of early 2026, the headline buyer-side tax on a property purchase in Egypt is the 2.5% real estate transaction tax, so on a typical 3 million EGP apartment (around 64,000 USD or 54,000 EUR), that means roughly 75,000 EGP (about 1,600 USD or 1,350 EUR) for this tax alone.
The individual tax components that make up the buyer tax burden in Egypt include the 2.5% real estate transaction tax (which is legally a seller tax but is often negotiated onto the buyer in practice), and the annual property tax based on assessed rental value administered by the Real Estate Tax Authority, which is calculated at 10% of the rental value after deductions for properties above the exemption threshold.
In Egypt, buyer tax rates do not formally differ for foreigners versus locals or for primary residences versus investment properties, though the annual property tax has an exemption for owner-occupied homes with an assessed annual rental value below 24,000 EGP, which effectively reduces the ongoing tax burden for lower-value primary residences.
If you want to go into more details, we also have a page detailing all the property taxes and fees in Egypt.
What are other closing costs in Egypt in 2026?
As of early 2026, a buyer in Egypt should budget roughly 2% to 6% of the purchase price for closing costs beyond the transaction tax, so on a 3 million EGP apartment (around 64,000 USD or 54,000 EUR), that means an additional 60,000 to 180,000 EGP (about 1,300 to 3,800 USD or 1,100 to 3,250 EUR) for registration, legal, and miscellaneous fees.
The main closing cost categories in Egypt include registration and notarization fees (which have been capped at a relatively low 4,000 EGP regardless of property size, or about 85 USD / 72 EUR), legal fees for due diligence and contract handling (typically 10,000 to 50,000 EGP, or roughly 210 to 1,060 USD / 180 to 900 EUR), and real estate agent commissions (usually 2% to 2.5% of the price, split between buyer and seller in many deals).
The most negotiable closing costs in Egypt are the agent commission, which varies widely and can sometimes be reduced or restructured, and legal fees, which depend on the complexity of the deal and the lawyer you hire.
The single closing cost item that tends to surprise foreign buyers the most in Egypt is the cost and time involved in title registration clean-up, because many Egyptian properties have incomplete or outdated registration records, and bringing them up to standard can add unexpected legal fees and weeks of delay.
Are there hidden fees foreigners miss in Egypt right now?
Foreign buyers in Egypt commonly overlook 50,000 to 150,000 EGP (roughly 1,060 to 3,200 USD or 900 to 2,700 EUR) in process-related costs that do not appear in the initial price negotiation but add up during the transaction.
The top three hidden or unexpected fees that foreign buyers most often fail to budget for in Egypt are title and registration clean-up costs when the property's paperwork is not registration-ready (often 20,000 to 80,000 EGP / 425 to 1,700 USD / 360 to 1,440 EUR), power of attorney legalization, apostille, and Arabic translation costs if signing from abroad (typically 15,000 to 40,000 EGP / 320 to 850 USD / 270 to 720 EUR), and bank transfer fees and foreign exchange friction when moving money into Egypt (which can add 10,000 to 30,000 EGP / 210 to 640 USD / 180 to 540 EUR depending on the amount and route).
After purchase, the ongoing annual costs that foreign property owners in Egypt often underestimate include compound or building maintenance fees (which can range from 15,000 to 60,000 EGP per year / 320 to 1,275 USD / 270 to 1,080 EUR in gated communities), annual property tax payments, and utility connection or reconnection fees if the property sits empty between visits.
Getting surprised by hidden fees is one of the pitfalls people face when buying real estate in Egypt.
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.
Can I get a mortgage as a US citizen in Egypt in 2026?
Do banks lend to US citizens in Egypt in 2026?
As of early 2026, some Egyptian banks do lend to US citizens for residential property purchases, but availability depends heavily on whether you are a resident in Egypt with local income or a non-resident buying from abroad.
US citizens generally receive the same treatment as other foreign nationals when applying for mortgages in Egypt, with no special advantage or disadvantage compared to, say, a European or Gulf-based buyer.
The main reason some banks in Egypt are hesitant to lend to American borrowers specifically is the extra compliance burden created by FATCA (the US Foreign Account Tax Compliance Act), which requires Egyptian banks to report American account holders to the IRS and adds administrative costs that smaller banks prefer to avoid.
The typical approval success rate for US citizens applying for property loans in Egypt is difficult to pin down with a single number, but most market observers and lawyers estimate that only a minority of American buyers end up using Egyptian bank mortgages, with the majority choosing cash purchases or developer installment plans instead.
There is a full document dedicated to mortgage for foreigners in our pack covering the property buying process in Egypt.
What down payment do American people need in Egypt in 2026?
As of early 2026, the minimum down payment for a US citizen getting a mortgage in Egypt is typically around 20% for resident foreigners with strong documentation, which on a 3 million EGP apartment (about 64,000 USD or 54,000 EUR) means at least 600,000 EGP (roughly 12,800 USD or 10,800 EUR) upfront.
The typical down payment range for foreign buyers in Egypt goes from 20% to 35% for residents with clean paperwork, and from 35% up to 60% for non-residents buying from abroad, because banks in Egypt tend to be more conservative when they cannot easily verify your income and employment locally.
A larger down payment does improve your mortgage terms in Egypt, both because it reduces the bank's risk (which can lead to a slightly better interest rate) and because it makes your application more likely to be approved in the first place, especially when you are a foreign borrower competing for limited mortgage products.
You can also read our latest update about mortgage and interest rates in Egypt.
What interest rates do US citizens get in Egypt in 2026?
As of early 2026, the typical mortgage interest rate range for US citizens in Egypt is between 18% and 26% annually for market-rate loans denominated in Egyptian pounds, though subsidized government initiatives can offer significantly lower rates (around 3% to 8%) if you qualify.
Interest rates for foreign buyers in Egypt are generally in line with what local residents pay on market-rate products, but foreigners almost never qualify for the subsidized Central Bank of Egypt mortgage initiatives (which are designed for Egyptian citizens buying affordable housing), so in practice foreigners pay rates at the higher end of the spectrum.
Variable-rate mortgages are the most common structure for foreign buyers in Egypt, with typical loan terms of 10 to 20 years, although some banks do offer short fixed-rate periods before switching to a variable rate.
The single factor that has the biggest impact on the interest rate a US citizen will be offered in Egypt is their residency status and income documentation, because resident foreigners with verifiable local income receive notably better terms than non-residents attempting to qualify with foreign income alone.
Can I use US income to qualify in Egypt right now?
The acceptance of US-sourced income for mortgage qualification in Egypt is limited but possible, with banks willing to consider foreign earnings if you can demonstrate reliable repayment capacity and provide thorough documentation.
The documentation of US income that banks in Egypt typically require from American applicants includes two to three years of US federal tax returns, employment contracts or proof of business ownership, recent US bank statements showing consistent income deposits, and sometimes a letter from your employer confirming your salary and position.
If standard US documentation is not enough to satisfy the bank, some Egyptian lenders accept alternative approaches such as offering a larger down payment (50% or more), providing cash collateral held in an Egyptian bank account, or using a "secured mortgage" structure where the bank holds a deposit as additional guarantee.
Get fresh and reliable information about the market in Egypt
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
How do US taxes interact with owning property in Egypt?
Do I have to declare the property to the IRS from Egypt?
The good news for US citizens who own property in Egypt is that simply owning foreign real estate does not create a special property declaration form with the IRS, because the IRS is primarily concerned with any income you earn from the property (rent or capital gains), any foreign bank accounts you use, and any foreign entities you might use to hold the property.
If you hold the property directly in your personal name, there is no requirement to report the real estate itself on Form 8938 (the FATCA form), but if you hold it through a foreign company, that entity interest can trigger Form 8938, Form 5471, or other international reporting forms depending on your ownership percentage and the entity type.
In other words, simply owning an apartment in Cairo that you use personally does not trigger special IRS forms beyond your normal tax return, but the moment you earn rental income, sell for a gain, open an Egyptian bank account above reporting thresholds, or use a foreign company, additional reporting obligations kick in.
Will I pay tax twice in the US and Egypt in 2026?
As of early 2026, there is a real risk of being taxed in both countries on rental income or capital gains from Egyptian property, but the US tax system provides tools to reduce or eliminate the double hit.
Yes, there is an income tax treaty between the US and Egypt (the full text is hosted on the IRS website), and it provides protections including rules on which country gets to tax certain types of income, though property income is generally taxable first in the country where the property is located.
The Foreign Tax Credit (Form 1116) is the main mechanism US citizens use to offset Egyptian taxes against their US tax bill: if you pay income tax or capital gains tax in Egypt on your property, you can generally claim a credit for those taxes on your US return, dollar for dollar, up to the US tax amount on that same income.
Whether Egyptian property taxes are deductible on your US federal tax return depends on how you use the property: if it is a rental or investment property, Egyptian taxes are more likely to be creditable or deductible as a business expense, while for a personal-use home the rules are more restrictive, which is exactly why talking to a US CPA before buying is strongly recommended.
Do I need FATCA reporting when buying in Egypt?
The FATCA reporting requirement for US citizens purchasing property in Egypt applies primarily to the financial accounts you open (like an Egyptian bank account to pay for the property or collect rent) rather than to the property itself, which means the act of buying real estate does not trigger FATCA on its own.
The specific FATCA thresholds that trigger reporting depend on where you live: if you reside in the US, you must file Form 8938 if your foreign financial assets exceed 50,000 USD at year-end (or 75,000 USD at any point during the year), and if you live abroad, the thresholds are higher at 200,000 USD at year-end (or 300,000 USD at any point).
FATCA reporting (Form 8938, filed with your tax return) and FBAR reporting (FinCEN Form 114, filed separately) are two different obligations with different thresholds: FBAR kicks in when your aggregate foreign bank account balances exceed 10,000 USD at any point during the year, which many Egyptian property owners hit even temporarily when transferring purchase funds through a local account.
Consulting a US CPA before buying property in Egypt is strongly recommended, and the specific questions to ask include how Egyptian rental income will be reported, whether your ownership structure creates entity-level reporting, whether your Egyptian bank account will trigger FBAR and FATCA, and how to claim the Foreign Tax Credit to avoid paying tax twice.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Egypt. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Egypt, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why we trust it | How we used it |
|---|---|---|
| GAFI - Land & Real Estate Ownership Laws | Egypt's official investment authority on foreign ownership rules. | We used it to anchor the baseline rules for what non-Egyptians can own. We also used it to identify the classic limits on number of properties and size. |
| GAFI - FDI Regulations | Official government document on foreign investment rule updates. | We used it to capture what the government says about easing limits for foreigners. We cross-checked it against older summaries to explain what may be changing. |
| Egypt Real Estate Tax Authority (RTA) | The authority that administers Egypt's property tax system. | We used it to explain how rental value is assessed and how appeals work. We kept the property tax section grounded in the government's own process language. |
| Ahram Online | Major national outlet attributing the tax rate to finance authorities. | We used it to confirm the 2.5% transaction tax rate buyers see in real deals. We used it as a reality check alongside legal and tax authority materials. |
| Central Bank of Egypt - MPC Press Release (Dec 2025) | The central bank's official statement of benchmark interest rates. | We used it to anchor what interest rates feel like in early 2026. We used it to explain why EGP mortgages tend to be expensive unless subsidized. |
| CIB Egypt - Mortgage for Overseas Customers | A major Egyptian bank with a product aimed at overseas buyers. | We used it to confirm that some banks do lend to non-resident buyers. We used it to shape the mortgage section toward real, named options. |
| QNB Egypt - Mortgage Finance Program | A major bank showing eligibility and terms for resident foreigners. | We used it to support practical LTV ranges for some unit types. We used it to differentiate resident foreigner versus living-abroad scenarios. |
| IRS - Form 8938 Q&A | The IRS's direct guidance on foreign asset reporting under FATCA. | We used it to state that foreign real estate is not reported on Form 8938 when held directly. We explained the common trap of holding property through a foreign company. |
| IRS - FBAR Guidance | The IRS's primary explainer for who must file FBAR. | We used it to explain when an Egyptian bank account triggers FBAR. We built a clean compliance checklist from it. |
| IRS - US-Egypt Tax Treaty Text | The official treaty text hosted by the IRS. | We used it to confirm that a US-Egypt income tax treaty exists and covers property income. We used it as the legal anchor for double taxation relief concepts. |
| US Embassy in Egypt | Official US government source on US citizen presence in Egypt. | We used it to estimate how many Americans live in Egypt. We kept the expat community section evidence-based with this anchor. |
| Al Tamimi & Company - Foreign Ownership Analysis | A leading regional law firm specializing in Middle East real estate. | We used it to verify the legal details of Law 230 of 1996 and its restrictions. We cross-referenced it with GAFI materials to ensure consistency. |
Get to know the market before buying a property in Egypt
Better information leads to better decisions. Get all the data you need before investing a large amount of money. Download our guide.
Related blog posts