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Sat, 10am - 4pm
132 Bermondsey St - London - SE1 3TX
Tel: 0207 378 6570
E-mail: sales@HAPOS.co.uk
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The Purchasing Process

Homes & Property Overseas have excellent relationships with the developers in Morocco, offering you a first class, professional, cost effective service. Our prices are developer prices; we do not add any fees, charges or commission.

We can provide details and recommend the various service providers required for you to complete your purchase.  These include banks and mortgage providers, lawyers and foreign exchange brokers.

You will be required to pay a refundable £2000 deposit on your chosen property prior to your viewing trip.  This removes the property from the market for approximately 14 days, in which time we arrange a viewing trip for you to see the development and surrounding area.  If you decide not to purchase, your deposit is returned to you in full. Once you confirm your intention to proceed with the purchase (we would ask you this within 48 hours after you return from your trip) your deposit is not refundable.

 

   

Viewing Trips

Homes and property overseas will manage your entire viewing trip from picking you up at the airport to dropping you back off. The viewing trip to Saidia will be a two night stay, and whilst we will be packing a lot in to the trip we will be with you and on hand throughout. On arrival you will be met by the viewings coordinator and taken to our luxury penthouse apartment in the beautiful town of Mijas.  We will then fly you over to the Saidia site on a private jet, flying time is approximately 50 minutes. Once we have shown you around your development we will fly you back on the private jet the same afternoon and drop you back to the apartment. The following day we will pick you up and take you to the airport for you departure back to the UK.

The whole trip is subsidised. All you need to do is pay for your flights to Spain and we take care of the accommodation and private jet to Saidia. We manage all the bookings on your behalf and make all the necessary arrangements to make your viewing trip as pleasant as we can.  

Payment Terms

As these are off plan properties with completion dates in 2008-2009, the payment terms are extremely favourable for the buyer. 

In most cases, between 30-40% of the purchase price, less the reservation fee, is required before completion of the property and is usually paid in staged payments.  The remainder is due on completion and can be paid either by a mortgage or cash.

The advantage of buying off plan is that for an outlay of between 30-40% of the purchase price, the buyer secures the capital growth achieved on the full value of the property at time of completion.

Mortgages in Morocco

Moroccan Dirham mortgages are available for up to 70% of the purchase price. The following banks have already confirmed they will be offering mortgages:

  • Societe General
  • Credit Agricole
  • WAFA Bank
Current interest rates in Morocco are approximately 5-6% with loan terms of 20-25 years available.  The mortgage system in Morocco is expected to improve in the next three years with the increased number of foreign purchasers and as more resorts come to completion.
Homes & Property Overseas can help you open a Moroccan bank account and put you in contact with the above lenders.

  

Purchase Costs in Morocco

You should budget for about 5-6% over the purchase price to cover:

∙ Stamp duty 2.5%
∙ Legal fees 1.1%
∙ Notary fees 0.5%
∙ Land registry 1.5% to 2%
∙ Dispatch fees approx 500DRh (£20)
∙ Misc (certificates) approx 500Drh (£20)


Tax on rental income

Owners are tax-exempt for the first five years of ownership.

Capital Gains Tax

Capital Gains Tax (TPI) is charged at 20% of the profit with a minimum of 3% of the sale price if the property is sold within 5 years. If you sell your property after ten years of ownership, you are fully exempt of TPI. If you sell your property after five years but within ten years, you are subject to TPI of 10% of any capital gain over 1 million MAD (approx. £61,000).

There is a double tax treaty between the UK and Morocco to ensure that Capital Gains Tax is not paid in both countries.

    

Inheritance Tax

There is 0% inheritance tax for family members. We advise you to seek professional tax advice as individual circumstances and company purchases of property can alter your tax liabilities.


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:

  • Transfer revenue net of tax without any limitation in amount or time
  • Transfer the proceeds of transfer or partial or total disposal of the investment, including profits

Selling 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 either 1.5% plus VAT or €3000 plus VAT.

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