GUIDE TO EGYPT:

The Republic of Egypt is well known for its amazing history and great lasting legacies such as the Pyramids. Nowadays the country is achieving huge success with its coastal tourism resorts – catering for holidaymakers from all over the world, looking to spend time enjoying the great climate and hospitality of its people.

Successful tourism markets tend to directly drive hot property markets – we’ve been particularly excited by one of Egypt’s modern day hotspots: Hurghada, on the red sea coast.

Before we offer you a unique insight into the reasons for buying property in Hurghada, here are some general facts about Egypt:

Population: 81,000,000
Capital: Cairo
Languages: English & Arabic
Time Zone: GMT + 2 Hours
Climate: Warm
Temperature: 27C-43C (Daytime Average)
Currency: Egyptian Pound (10 Egyptian pounds = £1 sterling (approx)

We didn’t choose Hurghada as a great place for buying property: Hurghada chose us!
Why? Because it ticks all the right boxes as a lifestyle and investment choice for property buyers:

Fantastic warm climate all year round
Beautiful Red Sea location
Friendly, welcoming locals
Low, low, low cost of living
Great capital growth projections
Strong rental market
Amenities & Facilities second to none
English widely spoken
Good accessibility
Extremely Affordable Property Prices
Safe, secure destination

The obvious draw to Hurghada is the great pricing on off-plan property. The old saying “you get what you pay for” does not apply here – you get a great deal more!
Where in the world can you buy a property for less than £20,000 / 30,000 euros?
And where can you buy such a property in a warm climate, near the beach with top class amenities? Hurghada.
The town is less than 6 minutes from Hurghada International Airport, which receives direct flights from the UK along with excellent connections via Cairo.
Greeted by the warm rays of the sun, tempered by the refreshingly cool sea breeze, Hurghada welcomes you from the first moment of arrival.
Everything in the town is within easy reach. Journey time from the airport to your accommodation is likely to be less than 10 minutes. Hotel accommodation is of a very high standard – 5 star beachfront hotel rooms are available from just £50 per night.
Sun-worshippers may wish to spend time relaxing by one of the many feature swimming pools, or indeed on the beach, with the cool Red Sea lapping away at your feet.
For the more adventurous – a whole host of leisure activities at there to enjoy, which include:

Go Karting
Windsurfing
Kitsurfing
Ten Pin Bowling
Paintball
Beach Volleyball
Football
Tennis
Basketball
Scuba Diving
Snorkling

Golfers will be delighted to know that there are several courses in the area, including a full 18 hole course at El Gouna and a floodlit par 3 course in Hurghada itself.
Also on offer are a variety of exciting day trips and activities including a fabulous Glass Bottomed Boat trip, Desert Trekking and off-roading.
Bars and restaurants are located on nearly every corner, catering for all tastes including Indian, Chinese, Italian, Moroccan and, of course, British food for the homesick!
Local Egyptian cuisine is also very tasty, with a 3 course meal and wine/beer easily available for less than £5 per person.
The healthy tourist market in Hurghada ensures that holidaymakers and permanent residents are never in short supply. This has provided an excellent base for commerce in the region, with may popular franchises operating in the town, including:

3 Hilton Hotels
Club Med
HSBC
Thomas Cook
Vodafone
McDonalds
KFC
Burger King
Pizza Hut
Hard Rock Café

Of course there are too many familiar names to list them all, plus a plentiful selection of not-so-familiar names, offering all conceivable goods and services that may be required.
Nearby El Gouna is just 30 minutes away – this high end resort boasts its own golf course and waterways, surrounded by huge luxury villas and apartments. The focal point of El Gouna is the beautiful marina, buzzing with luxury yachts, restaurants & bars, boutiques and top quality hotels.
Buying a property in Hurghada is an easy process. There is a fantastic choice of off-plan properties available through Compass. Our lawyers have performed all necessary due diligence on these developments.
Here’s how it works step by step:
1)    Book your viewing trip with Compass (usually a 3 day trip, including travel)
2)    View the available developments and choose the ideal property or properties for your needs. We will offer you friendly, helpful advice to guide you through this choice
3)    Reserve your property with a 10% deposit (this may vary slightly from one development to another)
4)    Within approximately 2 weeks you will receive a purchase contract, outlining the agreed payment structure and property details
5)    There are usually a series of stage payments throughout the build process
6)    When your property is complete, we will assist you to set up the necessary documents to obtain your title deeds
Please budget for legal and closing costs of around £1000 for your property in Hurghada. (Based on an average 2 bedroom apartment
We look forward to showing you the area in person – it will be an exciting experience which we are confident you will enjoy.
In the interim, please use our enquiry form to request personalised information from our investment advisor.

Tax Information

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 100m²] up to £200 [Over 300m²]
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/m² 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 4,000m² 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.