Why Invest in Egypt? Part 3

Published: 30/09/2010

TAX BENEFITS

The recent abolition of many administrative requirements relating to tourist activity, an easy to follow tax system and the absence of any inheritance or capital gains tax
for foreigners are all added incentives to purchase Egyptian property.

OPEN FOR BUSINESS

Egypt has implemented great changes for import/export and business start-ups to ensure it is a simpler process, undertaken sweeping tax reforms, and continued to
improve its credit information systems, and modified listing rules of the Egyptian Stock Exchange. Starting a business in Egypt has been made easier by reducing the paid-in minimum capital requirement, abolishing
bar association fees, and automating tax registration.
A new building code introduced in 2008 is aimed at reducing procedures and time required to deal with construction permits and there is continued work on systems to reduce
the time it takes to register a property.

DOING BUSINESS IN THE REAL ESTATE SECTOR

The Egyptian real estate sector is beginning to benefit from forward thinking government policies and a solid infrastructure. Developers are delivering international
quality projects while foreign investors and increasing foreign developer competition is ensuring a more transparent and efficient industry. With high capital returns in key locations, the investment climate in Egypt is
widely regarded as a promising one.
The sustained strong economic growth places Egypt as a safe haven and further potential is assured with the introduction of the mortgage loan scheme.

FOREIGN OWNERSHIP

In an eort to boost the real-estate market and expand its base, in April 2005, Egypt revamped the property ownership law to extend identical ownership rights and privileges to foreigners as those enjoyed by native Egyptians. Ownership follows a freehold model with the only exception being
in Sinai, where the ownership is based on a 99-year long lease system, usufruct system .

CONCLUSION

The Egyptian government’s commitment to economic growth and stability and the increase of aviation routes to and from the country along with Egypt’s low real estate prices and the opportunity for excellent rental yields are set to drive up the demand for Egypt as tourism and a second home
destination. This should ensure that the government reaches its target in 2011 target of 14 m tourists.