Sunseeker Homes Morocco

How to Buy in Morocco

The purchase process in Morocco is relatively simple and operates under a similar type of system to that of the UK and Ireland.

One of the most important considerations when purchasing any property is the appointment of a reputable, English speaking solicitor. He/ she can guide you through the entire process, making all necessary checks on the property ensuring the process is as smooth as possible.

The buying process

In order to make stage payments during the construction of your property, it is necessary to open a bank account in Morocco.

Mortgages are available for foreigners wishing to purchase in Morocco and typically 60 - 70% can be borrowed. For further information about obtaining a mortgage, please do not hesitate to contact us and speak directly with one of our friendly property team regarding your specific financial requirements.

Once you have decided to purchase a particular property, it is necessary to place a reservation deposit of approximately 3,000€ (2,000 GBP). This deposit ensures the property is taken off the market and very importantly freezes the price.

Stage payments can vary from developer to developer but generally 15% - 35% of the purchase price is required 30 days after the initial deposit has been made. At this stage a contract known as the private purchase agreement is signed by the purchaser and the developer.

There are normally one or two interim payments during the construction process with the remaining balance payable on completion of the property. Payment terms can vary depending on the particular development but our job is to help find you the ideal property; one that fits within your budget, matches your individual requirements and offers the most flexible payment plan available.

Call us now for more detailed information about flexible payment terms.

What are the charges and taxes involved?

It is important to budget for approximately 6% of the purchase price to cover various buying costs, these include stamp duty, legal fees, notary fees and land registry.

A double taxation agreement exists between Morocco and the UK meaning Capital Gains Tax or CGT referred to as TPI in Morocco is only paid in one country.

If you wish to sell the property on within five years of the purchase, CGT of 20% on the profit is payable, if you wish to sell the property between five and ten years after buying it 10% CGT is payable and finally no CGT applies if you sell the property after 10 years.

If the property is left to a family member there is no Inheritance Tax payable in Morocco.

Annual Property Tax is not payable for the first five years of the property’s life and after five years the amount payable is calculated on the amount of rental income (if any) declared by the property owner.