Buying a property

The government has done much to simplify the buying process for foreign nationals, yet as elsewhere, it remains important to work with an established agent and experienced lawyer when considering the purchase of a property in Morocco. Dealing with a recognised international agent will ensure that you receive the standard of service you are accustomed to at home, in your own language, and that the lawyer will be a reputable professional who can also explain things to you directly.

The buying process

When you have found the property you like, you will make a verbal offer via your estate agent. Once a purchase price is agreed upon a preliminary contract is drawn up. At this stage a qualified lawyer should be appointed who is fluent in your language. He or she will undertake the necessary checks on the property and prepare the documentation.

The buyer then needs to open a euro account with a bank in Morocco and transfer sterling or euros to this account. This currency is then converted to dirhams, with which the seller is paid. A deposit of between 10% and 30% is generally paid to secure a property, with the balance due at completion. The process takes an average of 6 to 8 weeks and the property is then registered with the Moroccan government in the name of the new owner.

Fees

As a general rule you should expect to pay around 9.0% of the property price. This covers lawyer’s fees, notary costs and registration.

• Property registration fees 2%
• Government taxes 2.5%
• Notary fees 0.5%
• Legal fees and various 1.5%
• VAT is currently 2.5% in Morocco. In the case of old houses or land, VAT is charged only on the notary and government registration fees, not on the property or land itself. VAT is, however, payable on newly built property, renovation work and off-plan purchases

Mortgages

• Available in Morocco up to 70% of the purchase price or valuation
• The purchase can be made in euros, dollars or sterling
• Normally over 15 years maximum, but cannot be extended beyond normal retirement age
• Interest is negotiable at 5.5%-8%
• Proof of income is required

The Law

The legal system is Latin-based and similar to that of France and Spain.

Currency Exchange

Visitors to Morocco are not permitted to import or export the national currency (dirham), so it is necessary to change currency into dirhams locally. The Moroccan Central Bank (Bank Al Maghreb) fixes the value of the dirham using a range of currencies including the euro, dollar and yen.

• Non-resident foreigners may freely exchange imported currency at the banks or at authorised institutions such as hotels, bazaars etc.
• If you wish to re-export all or part of the currency imported, you need to sign a declaration for the importation upon entry to Morocco

Net profits earned through the sale of a Moroccan property can be repatriated in other currencies to your home country, whether you are a resident or not. The only condition is to register the investment at the Moroccan Exchange Control Office beforehand.

Pitfalls

Inheritance laws in Morocco don’t facilitate the buying process, as each person with a claim to a property must give their approval to the sale. A lot of older properties do not have title deeds and getting hold of the paperwork can take up to two years. There are traditional houses in beautiful, unspoilt cities available, but while they are often quite cheap you can expect to pay heavily for restoration costs.