Is it possible to get a mortgage as a non-resident in Morocco?

Yes, three Moroccan banks have already confirmed they will be offering 60-70% mortgages. Interest rates are 5-6% for a loan period of up to 25 years

Are you free to choose your own bank?

Yes but some of the Developers we work with have negotiated favourable terms for our clients

What is the local currency?

The currency of Morocco is the Dirham (MAD)

What side of the road do you drive on in Morocco?

Traffic drives on the right in Morocco

Do I need a bank account in Morocco?

Yes you will need to open a bank account in Morocco and we can do this for you

Why do I need a bank account in Morocco?

All facilities such as power and water are paid by direct debit in Morocco, You will also need the account to facilitate payment of community fees

How do I transfer money to Morocco?

You can use your own bank or a foreign exchange broker such as HIFX

What currency will the purchase price and contract be in?

The property purchase price will be in Moroccan Dirham (MAD) You can pay your instalments in MAD, GBP or Euro.  For GBP or Euro payments, the developer will advise you of the amount required

What is the payment structure?

On exchange of contracts, 20% of the purchase price is payable (less the initial Reservation Deposit)

A second payment of 20% is due when building works commence i.e when ground work and foundations are started.  On completion, the outstanding balance of 60% is due either by mortgage or cash to complete your purchase

What are the purchasing costs?

Stamp duty: 2.5%
Legal Fees: 1.1%
Notary fees: 0.5%
Land Registry: 1.5% to 2%
Dispatch fees: approx £20
Misc. Certificates: £20

Is furniture included?

Furniture is included in Le Jardin de Fleur properties but not with Fadesa properties

Is Moroccan VAT of 20% included in the price?

Moroccan VAT is included in all prices we advertise

Do I need a solicitor?

Normally you can use the local notary but because of the distance and language barrier, it may be better to use a UK based Moroccan solicitor who can advise you on buying property in Morocco.  We can recommend solicitors to you

Is it possible to rent the property out?

Of course, All owners are tax exempt on any rental income for the first five years

Are there ongoing costs besides water and electricity?

We estimate community charges of approx. £70 a month

What do I need to know about taxes in Morocco?

There is a double tax treaty between the UK and Morocco which ensures that Capital Gains Tax (TPI) is not paid in both countries. In Morocco, TPI is 20% of the profit with a minimum of 3% of the sales price, If you sell your property after 10 years of ownership, you are fully exempt from TPI

Owners who sell their property after five years but within ten years are subject to TPI of 10% of any capital gain over 1 million (£61,000), There is no inheritance tax as long as the property stays within the family (however, it is advisable to seek professional tax advice as individual circumstances and company purchases of property can alter your tax liabilities)

What if I want to sell my property before completion?

You can sell your property to a third party once the initial 20% instalment has been paid. Selling on your investment is very easy and can be facilitated by your solicitor,  The developer will charge an administration fee of either1.5% plus VAT or €3000 plus VAT

Who can tell me more about Moroccan culture, history and economics?

Moroccan Embassy,
49 Queens Gate Gardens,
London SW7 5NE,
Tel: 020 7581 5001

www.morocco.embassyhomepage.com