Call us now on 08717 20 20 10 [UK - Special Low Rate]
Callers from outside the UK: (0034) 952 587 541
Call us now on 08717 20 20 10 [UK - Special Low Rate]
Callers from outside the UK: (0034) 952 587 541
PRE-RELEASE PRICES
To be first to receive news of new developments even before their release subscribe below.
NEWSLETTER
As part of the King’s sweeping changes to encourage foreign investment, Morocco now has a very favourable tax regime for foreign property purchasers.
When buying a property off-plan, there are a series of costs which must be paid when the property completes and just before taking possession of the finished home.
It is not possible to accurately itemise these charges as they vary slightly from one property to another, however we would recommend allowing an additional 5% of the property’s value to cover completion costs, roughly broken down as follows:
| Stamp Duty | 2.5% |
| Notary Fees | 0.5% |
| Land Registry | 1.5 - 2% |
| Dispatch Fees | 500Dh (£30) |
| Certificates | 500Dh (£30) |
You must add to this £1800 - £ 2400 for legal and contractual costs payable to the developer on signing contract.
Completing on a property is therefore inexpensive in Morocco, around half of what it would be in places such as Spain and just a quarter of the completion cost in Italy.
Note: All apartments are sold freehold but apart-hotel units are sold on a 99 year lease which is inheritable and automatically renewable.
Here are some general points on Moroccan taxation:
It is worth mentioning The Free Port of Tangier which offers huge tax benefits to companies registered there. Perhaps not so relevant for one-time purchasers, it is definitely worth investigating as a property investor. With the right setup, it is possible to save 50% on most property related taxes.
Should you have specific questions about Morocco’s taxation system, please use our enquiry form to request a personalised assessment.
It is, however, our recommendation that purchasers seek independent tax advice from a Moroccan tax lawyer.
Due to the relatively low prices of Moroccan properties, it is usual for developers to request a 40% down-payment against an off-plan property.
At the time of writing, the maximum mortgage offered by Moroccan banks is around 70% of the purchase price.
Interest rates are relatively high in Morocco, but have dropped in the last couple of years from over 8% to as little as 5.5% in some cases.
The next logical progression of the property boom in Morocco is that finance and mortgages become more competitive. We have recently seen the same trend in both Dubai and Turkey.
As time progresses, we expect lending percentages to increase and interest rates to drop in Morocco. This, in turn, is likely to lead to a huge release of equity, much of which may be reinvested so fuelling and maintaining Morocco’s impressive property growth levels.
We have monitored the progress of the Dirham (Dh) over the last 2 years and have been impressed by the stability of the currency, having seen very little fluctuation.
Properties abroad are usually priced in the local currency, therefore the price you pay may fluctuate between the time of reservation and completion. This could work in your favour or against you, there is often no way of knowing.
If you are concerned about these risks, we would be pleased to recommend a currency conversion specialist from whom you will be able to pre-order your currency conversion (often several years in advance) to make sure you are not affected by adverse fluctuations.