FAQ's
Can foreigners own property in Morocco?
Yes. Anyone can invest and own a property in Morocco.
Why Morocco and Why Now?
- King Mohammed's Vision 2010 project which has as it’s aim to increase the number of tourists to Morocco to 10 million by 2010
- Government introduced economic reforms in order to encourage foreign investment in Moroccan property
- Massive investment in infrastructure to deal with the increase in tourists
- Open Skies Agreement signed between Morocco and the EU. Low cost airlines such as Ryanair and Easyjet now fly to Marrakech from London
- The cost of living is quite low
- Warm, sunny climate – year round sunshine
- Charming culture
Can I get a mortgage on a Moroccan property?
Yes. It is possible to get mortgages on Moroccan properties, typically up to 70%, depending on individual circumstances. Repayment mortgages are the only type currently available however this should change as more and more competition enters the market. The process is quite straight forward and usually takes around one month for the bank to assess the situation.
What are the additional purchasing costs involved?
It's best to budget approximately 6% extra for the purchasing costs, which will ensure things like stamp duty, legal fees, notary fees and the land registry are covered.
What are the tax implications in Morocco when purchasing property?
The Moroccan government is dedicated to attracting foreign investment meaning that the way is being eased for investors. Recent changes to streamline the purchasing process in Morocco has resulted in more foreigners buying property in Morocco: Capital Gains Tax 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; there is no inheritance tax; there is no annual property tax for te first five years; no maintenance tax payable for the first five years. A Dual Tax Treaty exists between the UK and Morocco ensuring investors do not pay capital gains twice.
Is a solicitor needed?
Yes. It is the same with any house purchase – it is advisable to appoint a good solicitor versed in Moroccan law.