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Purchase Guide for Morocco property
Before you view a property
Due to the phenomenal demand and rate of sales within some new Moroccan resorts it may be advisable to actually place a holding or reservation deposit on a particular property before you come down to view the development site.
These deposits can vary but are typically € 3000 and are in most cases fully refundable if you decide not to proceed with a purchase after actually viewing the site.
The holding deposit will take the chosen property off the market and freeze the price for you if you decide to proceed with purchase.
Choosing a property
It's best to choose a knowledgeable agent and stick with them throughout the property search. Using multiple agents will simply cause confusion and will become a chore for you as you constantly will need to educate each additional agent as to your requirements and what you've already seen.
An Essential Morocco Sales Executive can show you exactly what you are looking for and will carefully plan your viewing according to your personal requirements.
Consider the frequency with which you will use the property, think about the distances from airports, rental potential and long term investment - establish a budget and remember to add 5 to 6 percent to the purchase price to cover fees associated with the buying process.
Acquiring the home of your dreams shouldn't cause a headache providing the research is thorough. If unobstructed views are a priority, consider homes which are beachfront, frontline golf or in elevated positions and always ask if further development is planned for the area.
Morocco offers world class golf courses, superb build quality and much improved infrastructure - not to mention an even better and reliable climate than southern Spain or southern France.
Payment Terms on new-build or off-plan developments
After you have chosen your property and have decided to proceed with your purchase we will coordinate your payment schedule directly with the Developer.
Currently in Morocco, in most cases, between 30 and 40% of the purchase price minus the Reservation Deposit is required before completion of the property and is usually paid in staged payments.
Exchange Rates
€1 = 10.96 MAD
1 GBP = 15.89 MAD
US$ = 9.06 MAD
The above rates were valid as from the 5th February, 2006. For current rates please use this online currency converter.
Mortgages in Morocco
Moroccan dirham mortgages are available for 60 – 70% of the purchase price and can be arranged with our assistance with Moroccan banks just before completion of the property.
Current interest rates in Morocco range from 5.5% - 6.5% with loan terms of 20-25 years available. The mortgage system in Morocco is expected to improve as more resorts come to completion and foreign purchasers invest in Morocco in the coming three years.
Purchase costs in Morocco
When purchasing a new build property in Morocco you should budget for approximately 5 to 6% over the purchase price to cover:
v Stamp duty: 2.5%
v Legal fees (if you decide to use a lawyer):
v Notary fees: 0.5%
v Land registry: 1.5 to 2%
v Dispatch fees: approx 500 DRh
v Misc (certificates): approx 500 DRh
Moroccan Legal System
The legal system and property registration system in Morocco is heavily influenced by the French system and is heavily dependent on notaries. Due to distance and language barriers we can recommend independent French-speaking lawyers to assist you if you like.
Information on taxes in Morocco
The Moroccan tax system is particularly advantageous to the foreign investor and has been streamlined by the King as part of the Azure Plan.
Tax on rental income
There is 0% tax on rental income in Morocco for the 1st five years of ownership.
Capital Gains Tax
Capital gains tax is charged at 20% of profit with a minimum of 3% of the sale price if the property is sold within 5 years. If the property is sold before 10 years capital gains is charged at 10% and 0% after 10 years. Capital gains tax is based on the sale price less the purchase price.
Inheritance Tax
There is 0% inheritance tax for family members, but it is important that you make a Moroccan legal will and seek professional tax advice. Contact us on info@essentialmorocco.com for further tax information and advice.
Double Tax Treaties with Morocco
Both the UK and The United States of America and Morocco share a double tax treaty that ensures investors do not suffer Capital Gains tax in both countries.
Repatriation of funds & profits
Foreign individuals, whether resident or non-resident in Morocco, will benefit from a convertibility system that guarantees their complete freedom to:
v Transfer revenue net of tax without any limitation in amount or time
v Transfer the proceeds of transfer or partial or total disposal of the investment, including profits.
The only condition for benefiting from this repatriation guarantee is to register the investment at the Moroccan exchange control office. | 
