Quote:
Originally Posted by CarolineF
Dear Zeiad,
I am new to this forum and am considering buying a property in Sharm El Sheikh or one of the areas on the mainland Red Sea coast. I have read your post on the legal situation in Sharm and wondered if you could help clarify something for me.
One of my critera is that I can rent the property out when I am not using it. Is it the case that it is not possible for foreigners to rent properties in Sharm El Sheikh even if they have this usufract means of ownership? Is there a way of getting round the restriction?
I would be very grateful for a response - as this will certainly help me to make a decision on Sinai vs mainland.
Thank you.
Caroline
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Hi Caroline, Welcome also from me.
Alison (Queenie40something) has replied to you but I will also add my two pennyworth.
Though it's tedious you will find lots about renting in Sharm and Egypt in general on the legal thread and yes, as Alison said, you are free to rent out. I do believe there is a small tax to pay depending on the value of your appt and no doubt insurance will cost a bit more if you rent out (but you will expect that). Presumably we should declare such earnings in UK, but surely expenses can take care of there being too much profit!
We have also bought at Sierra in Nabq and been through all the ramifications of 99 year lease etc. In the end we are happy with the arrangements and most developers will renew your lease to 99 years (for a fee) If you sell. I think it's to do with UN still being involved in the Sinai peninsula.
Anyway we don't believe we lose out at all, and much London property is leasehold so seems fairly normal in that respect.
Try to take a little time searching the legal threads as this is covered in considerable detail, though you may only have 98 years left on your lease by the time you finish reading!
We are also close to taking over our property, and our only worry really is that the airfares stay at managable levels. If not, we just have to stay there longer each trip......
Good luck
Iain