FSBOEgypt

Buying property in Egypt from the UK

Nothing in Egyptian law treats a British buyer differently from any other foreigner — the Law 230 limits apply identically. What differs is the UK side: HMRC taxes your worldwide income if you are UK resident, and Egyptian rent is part of it.

British buyers are among the largest foreign groups in the Egyptian market, concentrated heavily on the Red Sea. The Egyptian process is covered on the linked pages; this page is about what happens at the UK end, which most Egyptian agents will not tell you and are not qualified to.

The treaty position

The UK and Egypt have a double taxation convention signed on 25 April 1977, which entered into force on 23 August 1980 and has effect in the UK for income tax and capital gains tax from 6 April 1977.

What that means in practice: you should not be taxed twice on the same income, but you are not exempt from UK tax either. Relief generally comes as a credit for Egyptian tax paid against your UK liability, not as an exemption. The mechanics depend on your residence status and the type of income, so get advice from a UK accountant who has handled foreign property.

What HMRC expects

  1. If you are UK resident, foreign rental income is taxable in the UK and goes on the foreign pages of your Self Assessment return.
  2. Foreign property income is treated as a separate rental business from any UK property you own — you cannot simply pool the losses.
  3. Keep records of Egyptian tax paid, because that is what supports a foreign tax credit claim.
  4. The remittance basis for non-domiciled individuals was replaced from April 2025 by a residence-based regime for foreign income and gains. If you were relying on the old rules, take current advice — this changed recently.
  5. Capital gains on disposal, and inheritance tax exposure on your worldwide estate, both depend on your residence and domicile position. Neither is something to work out from a forum post.

Moving the money

  • Funds should enter Egypt through a state-owned Egyptian bank, with documentation showing the source. Keep the SWIFT confirmations and the bank's certificate for as long as you own the property.
  • UK banks apply significant scrutiny to large overseas property transfers. Tell your bank in advance and have proof of source of funds ready, or expect the payment to be held.
  • Compare your bank's exchange rate against a specialist transfer service — on a six-figure purchase the spread is a meaningful sum.
  • Never route the price through a third party's personal account, including an agent's. Payments go to the seller or the developer's own account.

Where British buyers actually buy

Overwhelmingly the Red Sea — Hurghada, Sahl Hasheesh, El Gouna and Makadi. The reasons are practical: direct flights from several UK airports, year-round sun, an established English-speaking expatriate community, freehold title, and entry prices well below anything comparable in Spain or Portugal.

The trap that catches British buyers specifically: Sharm El Sheikh looks like the same proposition and is not. Sinai sits under a separate regime where foreigners hold usufruct or long lease rather than freehold, commonly up to 75 years. Anyone advertising freehold in Sharm should produce the deed.

Common questions

Can a British citizen buy property in Egypt?

Yes, on the same terms as any other foreign national: up to two residential units totalling no more than 4,000 square metres, with freehold available on the Red Sea mainland but not in Sinai.

Do I pay UK tax on Egyptian rental income?

If you are UK resident, yes — foreign rental income is taxable in the UK and reported on the foreign pages of Self Assessment, with relief for Egyptian tax paid under the 1977 convention. Take advice on your own position.

Do I need to visit Egypt to buy?

Not for the whole process — much can be handled by an Egyptian lawyer under a properly legalised power of attorney. But you or someone you trust should see the property. Buying Red Sea property on photographs is the commonest way British buyers lose money.

Is there a UK-Egypt tax treaty?

Yes. The convention was signed on 25 April 1977 and entered into force on 23 August 1980.

Last reviewed September 2026. Prices, tax rates, residency thresholds and ownership rules in Egypt change frequently — verify anything you are relying on.