Can Foreigners Own Property in Egypt?

Can foreigners own property in Egypt? Yes, but subject to statutory limits and regulatory approval mechanisms. Egypt’s rising profile as a hub for regional investment and urban expansion has attracted growing interest from foreign individuals and entities seeking to acquire real estate across the country. From high-end residential developments in New Cairo to tourism-driven coastal properties in the Red Sea and Mediterranean regions, the demand for Egyptian real estate by non-nationals is now met with a cautiously liberalized legal response. The question “can foreigners own property in Egypt?” is not merely commercial—it is legal, strategic, and policy-driven. This article begins a four-part legal analysis of the applicable legislative instruments, regulatory mechanisms, and policy rationale behind Egypt’s approach to foreign property ownership as of 2025.

The Governing Statute: Law No. 230 of 1996

To address the central question—can foreigners own property in Egypt—one must begin with Law No. 230 of 1996. This statute remains the primary legal foundation for foreign acquisition of immovable property, both built and undeveloped, within Egyptian territory. It was enacted during a period of economic liberalization and represents a significant shift from Egypt’s historically cautious approach to land ownership by non-nationals. Prior to this law, the answer to whether foreigners could own property in Egypt was, in most cases, an unequivocal no. Earlier statutes imposed sweeping prohibitions rooted in post-colonial and national security concerns. The 1996 law marked a turning point, allowing foreign individuals and legal entities to own real estate, but only within a controlled, monitored framework.

Although Law No. 230 of 1996 recognizes that foreigners can own property in Egypt, it does not grant this right unconditionally. Instead, it imposes substantive qualifications related to the number of properties permitted, their use, and the geographic areas where ownership is legally recognized. The law was designed to accommodate inward investment without ceding unchecked control over land markets to foreign interests. Thus, while the law opens the door, it does so cautiously, ensuring that any foreign ownership serves Egypt’s broader economic development plans.

Executive Oversight: Prime Ministerial Decree No. 548 of 2005

While Law No. 230 of 1996 establishes the legal basis for answering whether foreigners can own property in Egypt, its real-world implementation depends on administrative regulations—chief among them Prime Ministerial Decree No. 548 of 2005. This decree serves as the executive arm of the 1996 statute, setting forth the procedural steps and jurisdictional guidelines through which foreign ownership is reviewed and authorized. It identifies the authorities competent to approve purchases, the requirements for obtaining such approval, and the documentation necessary to effectuate a lawful transfer of title. Without compliance with these regulatory provisions, any foreign attempt to purchase property—even if theoretically permitted—may be rendered legally defective.

Importantly, the decree also introduces geographic distinctions, making clear that not all land within Egypt is equally available for foreign acquisition. Properties located near borders, antiquities zones, or in other areas of national strategic importance remain off-limits, or at least subject to special authorization. Consequently, although foreigners can own property in Egypt, this right is modulated by spatial considerations and subject to political and economic evaluation at the executive level. The regulation is not merely technical; it is a vehicle through which the state can affirm or deny foreign access to specific real estate assets based on national interest.

Historical Residue: Law No. 15 of 1963 and the Agricultural Exception

Despite the reforms of 1996 and their subsequent regulatory developments, certain legal prohibitions remain in force—most notably through Law No. 15 of 1963. This law explicitly forbids foreigners from owning agricultural or desert land unless special permission is granted through exceptional channels, such as a presidential decree. It reflects an enduring state interest in preserving agricultural land for national use and in limiting foreign control over land essential to food production, water management, and desert reclamation efforts. For this reason, while one can confidently say that foreigners can own property in Egypt under defined legal circumstances, such ownership categorically does not extend to the agricultural sector without extraordinary legal intervention.

This legal exclusion is not merely theoretical. Foreigners who attempt to circumvent the restriction through nominees, shell entities, or informal arrangements risk nullification of the contract and possible administrative penalties. Accordingly, any legal practitioner advising on foreign investment in Egyptian real estate must remain attentive to the ongoing effect of Law No. 15 of 1963, as it creates an immovable boundary in an otherwise liberalizing environment.

Ownership Limits and Legal Capacity

While Egyptian legislation provides a legal pathway through which foreigners can own property in Egypt, this pathway is not without boundaries. Law No. 230 of 1996 sets quantitative limits on what a foreign individual or entity may acquire. In its standard form, the law permits foreign persons to own no more than two distinct residential properties anywhere in Egypt. This limit applies regardless of the property’s location or intended use, and is subject to an area cap, whereby the surface area of each unit should not exceed 4,000 square meters. This threshold reflects the Egyptian state’s underlying concern that uncontrolled foreign accumulation of domestic real estate may undermine the national housing market or lead to speculative pressures in sensitive economic zones.

The answer to the question—can foreigners own property in Egypt—must therefore always be framed within the context of these ownership ceilings. While the law does not outright prohibit foreign ownership, it conditions that ownership on volume, purpose, and proportionality. Moreover, if a foreign investor wishes to exceed the standard ownership limit, the law allows for the possibility of exemption, but only upon express approval from the Council of Ministers. Such exemptions are rare and typically require the investor to demonstrate a significant economic or development benefit to the Egyptian state, often supported by a licensed project or official partnership with a state-affiliated entity.

Location-Based Restrictions and Strategic Zones

One of the most critical aspects of Egypt’s legal approach to foreign real estate ownership lies in the geographic dimension. Although it is legally permissible for foreigners to own property in Egypt, this permission is not universal across all regions of the country. Properties located near international borders, military zones, antiquities sites, or areas designated as having national security importance are categorically restricted from foreign ownership. In these areas, no property rights may be transferred to non-Egyptians absent specific security clearances and inter-ministerial approvals, which are almost never granted in practice.

This policy reflects the reality that, while foreigners can own property in Egypt, they cannot do so in ways that would compromise territorial integrity or strategic land use planning. In practice, this means that most foreign real estate transactions are concentrated in designated development zones such as New Cairo, the North Coast, the Red Sea resorts of Hurghada and El Gouna, and recently developed urban areas like the New Administrative Capital. These regions have been pre-cleared for foreign investment and are administered with a more permissive regulatory approach, including fast-track registration procedures and minimal national security concerns. Even in these areas, however, ownership remains subject to the underlying caps and procedural safeguards already discussed.

Legal Interpretation and Judicial Attitudes

The question—can foreigners own property in Egypt—has also been addressed indirectly by Egyptian administrative and civil courts, particularly in disputes over land registration, inheritance, and the enforcement of foreign purchase agreements. While the judiciary has generally upheld the permissibility of foreign ownership where legal conditions are met, it has shown little tolerance for attempts to circumvent statutory limits. Egyptian courts tend to adopt a purposive interpretation of the law, emphasizing the balance between attracting foreign capital and protecting domestic economic stability. Contracts that seek to sidestep ownership caps or utilize nominal Egyptian agents without clear beneficial ownership structures have frequently been invalidated, especially where the arrangements conflict with public interest principles or border zone restrictions.

Therefore, although foreigners can own property in Egypt, they must do so with careful attention to compliance, transparency, and lawful structure. Egyptian courts will enforce property rights acquired in good faith and within the statutory limits, but they will not extend legal protection to transactions structured to disguise beneficial ownership or evade regulatory scrutiny. Legal advisors should thus treat every aspect of a foreign property transaction—substance, form, and documentation—as critical to enforceability.

Conclusion

As of 2025, the legal position is clear: foreigners can own property in Egypt, particularly residential, commercial, and touristic assets, so long as their ownership complies with national laws and does not involve restricted categories such as agricultural or border lands. Law No. 230 of 1996 remains the central legal authority confirming that foreigners can legally acquire property in Egypt, and its practical implementation has been broadly favorable to foreign investors.

Still, legal compliance is essential. While foreigners can own property in Egypt, they must follow registration, zoning, and nationality-related requirements to ensure enforceability. With proper due diligence and legal structuring, Egypt offers a secure and accessible real estate market for non-Egyptians.

In sum, can foreigners own property in Egypt? Yes—but always within a legal framework that balances investor rights with national interest.

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