Egyptian Pound: 1 US$ is equivalent to 6.5 Egyptian Pounds. The government have decided to free up linkage with the US$ and float foreign exchange rates against the pound.

Economic climate: Cost of living is low but the infrastructure is good. The, Egyptian government is working hard to encourage foreign investment particularly in the real estate sector. Buying in hard currency as the pound has effectively devalued obviously increases purchasing power.

Taxes: Tax on any form of income from property is runs at 20 to 22% and is basically the alternative to Value Added Tax. There is no inheritance tax. Many countries enjoy an anti double taxation treaty with Egypt.

Popular Areas: Undoubtedly the most favoured area for foreign ownership is the Red Sea resort coast rapidly gaining popularity as a relocation and retirement location.

Price ranges: Property prices are cheap compared to European vacation homes, the Red Sea coast offers foreigners much more affordable alternative. Range USD 85,000 toUSD 350,000

Budgetary Guide: Apartments Two bed: (Off -Plan) USD 85,000, (Marina Town) USD 133,000. Detached House (Nubian style): USD 129,500. Golf Resort Villas with pool USD 250.000. Luxury Houses: USD 350.000

Overseas Investors: Foreigners may purchase more than one apartments and the process of foreign ownership in general has been made much simpler.

Service Fees: Registration and legal fees for the conveyance process are around 6% of the property-purchase price. Annual costs are US$ 400 apartments and 700 US$ on villas. Following registration a further payment of 25% will become due in 30 days.

Mortgages: Presently there is only one licensed mortgage company - EI Ta´meer for Real Estate Financing, an affiliate of the Housing and Urbanisation Bank. A further 3 companies are expected to open.

Information: www.sis.gov.eg Egyptian State Information Service, www.hsbc.com.hk HSBC Bank information service covering Egypt.