For anyone with experience investing in property in the Red Sea, and Egypt generally, there's a well known government regulated limitation on outward international transfers from Egypt, to other countries, depending on certain conditions. When these conditions are understood and decisions are made in accordance with them, your investment funds can (usually) move fairly freely through Egyptian banks, if you'd like to use them.
Additionally, there are some differences in the regulations for foreigners and Egyptians when investing in property in Egypt, which we'll cover here too.
For our discussion here we'll focus on EGP, USD, EUR & GBP as these are the most common currencies we're working with, with respect to property investments (whether resale, off-plan or our "Real Estate Investment Trust" REIT at Jossour).
Using Egyptian Banks for Property Investments.
When using Egyptian banks for buying & selling property, there's a very important restriction to keep in mind IF you'd like to transfer foreign currency out of Egypt.
Essentially, Egyptian banks for some time have been limiting the international transfer of foreign currencies (for example USD, EUR, GBP) out of Egypt, to the amount previously deposited, plus 4000 per month. However, at this time, even this allowance is on hold, further restricting foreign currency movements internationally, so if you intend to use Egyptian banks with foreign currency, it's advisable to personally speak to the corresponding bank manager, prior to taking any significant financial action(s) with any local bank in Egypt.
* Please note that all details relating to Egyptian banks & government regulations are subject to change, at any time, as are details relating to any financial institution.
Resale & Off-Plan Properties.
When either the buyer or the seller of a property for sale is a foreigner, the transaction itself can be done in foreign currency, through any bank, either inside of Egypt or globally, without restrictions, however proper documentation is required (in Egyptian banks), which is the contract for the property sale.
Special Conditions for Egyptians.
When two Egyptians are closing a deal on a property for sale, it's illegal for them to complete any associated financial transactions with foreign currency (using Egyptian banks), so if they'd like to use foreign currencies, they must use overseas banks (banks outside of Egypt) to complete these transactions.
Using International Banking Only.
Alternatively, you can use external banks (avoiding Egyptian banks entirely), so when buying or selling property, only do so via direct international transfer in USD, EUR or GBP. This option is certainly the simplest one.
Cryptocurrency Is Now a Very Viable Option.
Another option is to use cryptocurrency, with exchanges like Binance (step-by-step instructions) & Kraken which are available in Egypt. These accounts are free, quick to set up & allow near instantaneous transfers, having transfer fees that are so low relatively speaking, they are literally near zero.
We'd Love To Hear From You!
If you'd like to learn even more from us at Jossour about how to easily maintain fluidly accessible funds for your Red Sea property investments in El Gouna, Somabay & Makadi Heights, as well as in Almaza Bay, you're very welcome to book a complimentary consultation with us here:
https://www.jossour.com.eg/