Egypt Cabinet doubles property value needed for residency to $100k
Egypt’s Cabinet approved Wednesday a proposal to amend regulations allowing non-Egyptians to apply for residency permits on the basis of their property in the country.
According to the new regulations, property worth $100,000 is required to apply for a one-year resident permit, up from $50,000 previously. In addition, applicants wishing to obtain a five-year residence permit must now own a property in Egypt worth at least $400,000.
The new amendments to the nationality law are designed to cope with increasing real estate prices. Under the new regulations applicants wishing to obtain a five-year residence permit must now own property in Egypt worth at least $400,000.
The changes followed a parliamentary committee’s approval of a new law granting Egyptian citizenship to foreign investors.
Patrick Werr, financial reporter and US national living in Egypt, told Mada Masr that the decision will likely make it harder for foreigners to obtain a residence permit than under the previous regulations.
While some have speculated that this may be an attempt to increase the value of foreign investment coming into Egypt, Werr contends that this is not clear-cut. “The foreigners who do buy property will spend more, but fewer foreigners will be able to afford to buy property. The government seems to want to reduce the number of foreigners, while maintaining an investment flow,” said Werr. “Of course this makes it harder for people to buy property here. Most people don’t have a $100,000 to throw around without dipping into their retirement funds.”
Werr added that he considers the new regulations confusing, as it is unclear whether the amendments will be applied retroactively. “Is the one-year residence permit renewable? Will this be retroactive? Will foreigners who bought property earlier be allowed to continue to reside in Egypt? Is the government trying to maximize revenue, or reduce the number of foreigners — or both?” he asked.
Without Egyptian property worth $100,000, non-Egyptians hoping to apply for residency permits will have to resort to other means. This may include marrying an Egyptian, establishing a company in the country or obtaining a work permit. “None of which is easy,” according to Werr.
