Buying Property in Egypt as a Foreigner: The 2025 Safety Guide
Can foreigners really own property in Egypt? Is your investment safe? These are the two questions we get asked every single day at Hurghada Real Estate Group. The short answer is YES, but only if you follow the correct legal procedures.
In This Guide:
Key Takeaways
- ✓Foreigners have full rights to own freehold property in Egypt.
- ✓Green Contract is the highest form of title deed registration.
- ✓Signature Validity is the standard legal protection for off-plan projects.
- ✓Always secure a Tawkil (Power of Attorney) from the seller.
The Hurghada real estate market is booming in 2025. With the Egyptian Pound devaluation making luxury properties incredibly affordable for foreign investors, thousands are flocking to the Red Sea. However, navigating Egyptian property law can be confusing.
1. Can Foreigners Buy Property in Hurghada?
Yes. Under Egyptian Law No. 230 of 1996, foreigners are allowed to own real estate in Egypt. However, there are two distinct types of ownership registration, and understanding the difference is critical for your security.
2. The Green Contract (Tasgeel)
The Green Contract is the gold standard of property ownership. It is a government-issued document that proves the property has been fully registered with the Real Estate Publicity Department.
- Security: It provides the highest level of legal protection.
- Availability: Not all properties in Hurghada have a Green Contract yet. It takes time for developers to finalize this for new projects.
- Restriction: Foreigners can own a maximum of two properties with Green Contracts, each not exceeding 4,000 square meters.
Top Tip: If you are looking for Green Contract properties, check out Avin in Ahyaa District, which offers fully registered units ready for immediate move-in.
Signature Validity (Sahha Tawqee)
This is the most common method for purchasing off-plan projects in Hurghada. It is a court verdict confirming that the signature on your sales contract is authentic and belongs to the developer.
Comparison: Green Contract vs. Signature Validity
| Feature | Green Contract | Signature Validity |
|---|---|---|
| Registration Type | Full Government Registration | Court Verdict on Contract |
| Ownership Security | Highest (100%) | High (Legally Binding) |
| Availability | Limited (Resale/Finished) | Widespread (New Projects) |
| Time to Process | 6 - 12 Months | 3 - 6 Months |
3. The Power of Attorney (Tawkil) Explained
Crucial Legal Concept
Never complete a purchase without understanding the Tawkil. It is often more important than the contract itself in daily administrative matters.
In Egypt, the Tawkil is an irrevocable Power of Attorney. When you buy a property, the seller must sign a Tawkil at the Notary Public Office.
This document grants you, the buyer, the absolute right to:
- Manage the property (utilities, internet, government dealings).
- Sell the property to yourself or others.
- Register the property in your name officially.
The Tawkil ensures that even if the seller disappears or (God forbid) passes away, you still have the legal power to transfer the deed to your name. HRG's legal team ensures this document is drafted correctly for every transaction.
4. Closing Costs: What Do You Really Pay?
One of the biggest advantages of buying in Egypt is the incredibly low closing cost compared to Europe or Dubai. Here is exactly what you should budget for:
| Expense | Estimated Cost | Who Pays? |
|---|---|---|
| Legal Fees | Approx. £600 - £1,000 (GBP) | Buyer |
| Real Estate Tax | Varies (Often 0 for low-value) | Owner (Yearly) |
| Disposal Tax | 2.5% of Sale Price | Seller |
| Signature Validity | Approx. $300 - $500 | Buyer |
| Maintenance Fee | 8% - 10% (One-time) | Buyer |
5. Best Investment Locations 2025
Safety isn't just about paperwork; it's about location. To ensure high ROI and resale value, stick to these prime gated communities:
Sahl Hasheesh
The most exclusive address on the Red Sea. Gated, secure, and incredibly well-maintained. Projects like Soulferyo and Veranda offer the highest appreciation rates.
Magawish & Intercontinental
Directly opposite the airport and close to the city center. This area is seeing massive infrastructure growth.Clan Residents is a top pick here for investors seeking rental income.
Frequently Asked Questions
Can I get a residency visa if I buy a property?
Yes. Depending on the property price (typically starting from $50,000 USD), you can apply for a 1, 3, or 5-year renewable residence permit.
Do I need a lawyer?
While not mandatory, it is highly recommended. At HRG, our in-house legal team handles the due diligence and contract review for all our clients to ensure safety.
How do I pay for electricity?
Most modern compounds use a pre-paid card system. You simply charge your card at the administration office or local kiosk. We assist in transferring the meters to your name via the Tawkil.
Conclusion: Is it Safe?
Buying property in Hurghada is safe IF you use a reputable broker. At Hurghada Real Estate Group, we do not sell properties that have legal issues. We check every document before we even list a project on our website.
Ready to start your journey?
About the Author
HRG Legal & Investment Team
With over 10 years of experience in the Red Sea market, HRG specializes in guiding international investors through the legalities of buying property in Egypt safely.
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