Moroccan investment questions answered

Frequently Asked Questions about investing in Morocco

Can anyone buy Property in Morocco ?

Any property investor with the necessary funds can purchase a property in Morocco .

Is it possible to qualify for a mortgage?

Mortgages for people wishing to buy property in Morocco are readily available with 60% - 70% being the standard amount borrowed.

Do I have to open a bank account in Morocco ?

Yes in order to make the relevant stage payments you will need to open a bank account in Morocco, this is something that your lawyer will be able to assist you with and is a relatively, simple procedure.

How do I transfer my money to Morocco ?

We strongly recommend that you use the services of a foreign exchange provider and we work closely with Moneycorp (please click here for futher information). Using a foreign exchange provider can help save you a substantial amount when transferring monies.

What is the actual purchase procedure?

The purchase process is very similar to buying property in Spain .

The initial reservation deposit freezes the place and takes the property off the market. Depending on the individual developer stage payments can differ, generally a deposit of between 15% - 35% is required 30 days after the initial deposit when private purchase contracts are exchanged.

There is normally one or two more stage payments made during construction with the remaining balance paid on completion of the property.

What are the extra costs involved in purchasing a property in Morocco ?

We would advise that you budget to include costs of around 5% - 6% of the property purchase price. This is to cover stamp duty, legal fees, notary fees and land registry.

Do I need a solicitor?

Yes as with any property purchase you will require the services of a qualified legal professional.

What is the rental market like in Morocco ?

Thanks to a forward thinking government who is actively promoting tourism, there is a captive rental market in Morocco .

Many developments also offer guaranteed rental schemes and some also offer the services of a rental management company.

Occupancy during the high season is about 80% and with the arrival of low cost airlines and the government backed "Plan Azur" this figure should rise.

Apart from bills for water and electricity associated with a property purchase in Morocco ?

There are some additional community fees for the maintenance of communal areas and general upkeep of the property and these vary depending on the particular development.

What taxes are payable on a property purchase in Morocco ?

In order to attract foreign investors, the government has introduced some tax reforms which are more favourable to foreign direct investment.

Capital gains of 20% applies if the property is sold within 5 years, 10% if sold within 10 years and 0% capital gains is incurred if the property is sold after 10 years. A double taxation agreement exists between the UK and Morocco so capital gains is only payable once.

Inheritance tax does not apply if the property is left to a family member .

There is no annual property tax paid for the first 5 years, after this the tax payable relates to the amount of rental income received by the property owner.

Why should I invest in Morocco ?

• Huge government investment - King Mohammed's tourism drive "Plan Azur" aims to attract Morocco to 10 million tourists to Morocco by 2010 .
• Economic reforms and relaxation of tax laws in Morocco have bee introduced to encourage foreign investment.
• Massive improvements to the country's infrastructure with the construction of new motorways, airports, marinas, golf courses and luxury holiday resorts.
• Increase in tourism has created a captive rental market.
• Morocco has signed an "Open Skies" Agreement with the EU allowing low cost carriers to fly into the county and already Easyjet and Ryanair have added the country to their destinations.
• Very low cost of living.
• Fantastic Mediterranean lifestyle - similar climate and beautiful unspoilt beaches.
• Unique culture with many sites of historical interest to explore.
• Ongoing collaboration with the European community - introduction of free trade zone between the EU and Morocco in 2010.
• A modern, liberal Arabic state with a steadily growing economy.

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