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| Legal Information on Morocco Property & other questions |
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| Who can purchase property in Morocco? |
Any overseas buyer, investor or resident can purchase property in Morocco. Particularly residents from EU countries and the USA are welcomed in Morocco. |
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| Is it possible to get a mortgage to finance my property in Morocco? |
| Yes, on Moroccan properties it is possible to obtain a mortgage. 60% - 70% is relatively standard, depending on your personal financial situation. The current interest rate is roughlty between 5.5% to 7%. |
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| Do I need to open a bank account in Morocco? |
| Yes, as a buyer you will need to have a bank account in Morcco, with a moroccan bank. Only in time for the completion of the purchase. We will ensure that you are exactly instructed of what is required from you at all stages of the property purchase. |
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Can I transfer money to Morocco?
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| Yes, you may use your own bank or a currency-exchange broker such as Moneycorp. In general we reccomend using a FX company such as Moneycorp when transfering large sums of money. This can save you considerable amounts. |
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How is the procedure to reserve a property in Morocco?
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| A reservation fee of € 3.000,- (aprox £2.000,-) holds the property for you and freezes the price. The exact payment structure varies from development to development and from developer to developer. In general there a deposit between 25% and 40% is required. Sometimes an interim payment and then the remainder on completion. |
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| What is the cost of purchasing property in Morocco? |
| The cost of purchasing a property in Morocco is 5% to 6%, you must add this to the purchasing price. The breakdown of cost in the example below: |
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Stamp Duty: |
2.5% |
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Legal Fees: |
1.1% |
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Notary Fees: |
0.5% |
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Land Registry: |
1.5% - 2.0% |
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| Do I need a solicitor? |
| We recommend you use a solicitor for legal advice. We can provide you London based or Spain based solicitors details, who specialize in Moroccan property but you are free to appoint your own. |
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How about taxes and cost of ownership on a property in Morocco?
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| New buyers are exempt from property tax for the first 5 years. Morocco has a solid rental market with occupancy around 85% in the high season and expected to rise as Vision 2010 matures. The first three years there are no income taxes on the rental income. Capital gains tax is 20% if you sell within five years; 10% if you sell between five and ten years and zero if you sell after ten years! There is no inheritance tax when the property is left to family. |
| Other cost of ownership as community fees and insurance depends on the resort and size of the property but is less than the cost for a similar property in Europe . |
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| Is it possible to sell a Morocco property prior to completion? |
| Yes most of the resorts and developments have this written in the contract. This point varies from project to project. If this is an important part of your investment strategy we recommend you speak to us about this before making a reservation. In most cases it is possible without any problems, sometimes there maybe an administration charge to action this option. |
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