Frequently Asked Questions:
Buying Property in Morocco
Why Morocco? Why Now?
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King Mohammed's Vision 2010 project to increase the number of tourists to Morocco to 10 million by 2010
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Economic reforms (more attractive tax legislation) to encourage foreign investment in Moroccan property in order to achieve the increase in the number of beds required to accommodate the rise in tourism
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Huge investment in infrastructure to cope with the influx of tourists. new roads, rail tracks, expansion of airports, new marinas, new golf courses, luxury resorts
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Open Skies Agreement between Morocco and the EU which has opened the skies of Morocco to low cost airlines (Easyjet and Ryanair, to name two, already fly to Marrakech from London)
- Low cost of living
- Mediterranean climate
- Fascinating culture
Can foreign non-residents buy property in Morocco?
Yes. Anyone can buy a property in Morocco, whether it's for pure investment or as a holiday home.
Can I get a mortgage on a Moroccan property?
Yes. It is possible to obtain mortgages on Moroccan properties, typically up to 70%, depending on individual circumstances. The only type of Moroccan mortgage presently available is based on repayment only. However, as more competition enters the market these rates and conditions should become more flexible. The bank will take around 1 month to assess the situation and when it is cleared it will provide a letter of pre-approval and the contractual process of purchasing a property can be started. My Other House can assist you if you require help however, the process is quite straight forward.
What is the tax situation in Morocco when buying property?
Morocco has adjusted its tax laws to help the buying process and make the country a more attractive place to invest in property:
- Between 0% and 20% tax on any capital gains (capital gains is charged on property at the rate of 20% if sold within 5 years, 10% if sold within 10 years and 0% if sold after 10 years)
- 0% Inheritance Tax (if property is left to family members)
- No annual property tax for first 5 years (after which the amount due is dependent on the total annual rental income, not the value of the property)
- No maintenance tax for first 5 years (after which 10% of the property's annual rental income is paid)
- Dual Tax Treaty: UK and Morocco (meaning you do not have to pay capital gains twice)
What are the additional purchasing costs involved?
It's usually best to allow a budget of approximately 6% for the purchasing costs. This covers fees such as stamp duty, legal fees, notary fees and the land registry.
Do I need a solicitor?
Yes. As with any house purchase, the services of a good solicitor are required. My Other House can recommend an independent solicitor but you are of course free to find your own.
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