Why people Invest in Morocco
Despite the many instabilities that are affecting the majority of its neighbours, Morocco is fast becoming one of the best emerging markets for investment. Over the last decade, Morocco has witnessed an accelerated process of political, economic and social reforms, and its steady economic growth and strategic geographic position make it an investment opportunity well worth considering.
7 Top Reasons:
- Cost Competitiveness
- Strong and Stable Macroeconomic Performances
- Free Trade Access to One Billion Consumers
- World Class Infrastructure
- Qualified Labor Force
- Sectorial Plans
- Constantly improving business Climate
- A legal framework and assistance measures very favorable to investors
- Relatively low salaries
- A strategic position, not far from Europe
- A young and relatively well trained population
- Strong growth…
Legal stability and freedom
According to the latest data provided by the Exchange Office, the types of companies preferred by foreign investors are the Limited Company and the Limited Liability Company, while subsidiaries are the most preferred institutional form. Companies like Atento, Nestle, Sanofi-Aventis, and Dell have been successfully operating for years in Morocco. France alone has over 500 subsidiaries that employ more than 65,000 people, including Total, Renault and Holcim.
One of the reasons behind such an interest is a legal framework conducive to investment and a bilateral investment agreement between Morocco and over 50 countries that protects foreign investors against risks of nationalization and expropriation. Foreign entrepreneurs can therefore establish a company, settle in the country, and get their profits freely, without having to rely on a local sponsor as they do in Algeria or in the Gulf countries.
What are the Government measures to motivate or restrict investment in Morocco?
The new investment charter which was introduced in July 2016 as part of Law 60-16, and replacing a previous charter implemented in 1995, creates free-trade zones in each of the 12 regions of the country, recognizes indirect exporter status and creates incentives for export-oriented and industrial companies.
* There is no tax on rental income for the first five years. Capital gains tax is charged at 20 per cent of profit with a minimum of 3 per cent of the sale price if the property is sold within five years, then 10 per cent if sold between five and 10 years, then zero after 10 years. There is no inheritance tax for family members, but you must make a Moroccan legal will and seek tax advice.
WHO CAN BUY PROPERTY IN MOROCCO?
- Investors, Residents, Foreigners…The real estate market is fluid and open. Everyone can own property in Morocco, no need for a local sponsor.
Where to buy property in Morocco is probably a question you’ve asked yourself if you’ve visited or seen pictures of this beautiful country. Its proximity to Europe and its good climate all year round, along with a diverse culture, rich history and world famous cuisine, make Morocco an ideal place to buy property. Whether as personal retreat or for investment purpose often the big question is: where to buy property in Morocco?
If you are looking to buy property as an investment either as a guesthouse, hotel or rental income it would be wise to consider properties in cities like Marrakech, Fes, Chefchaouen, Essaouira or Ouarzazate. Although geographically apart, they are all nearly mandatory in any decent tour of the country assuring a constant stream of clients if you play your cards right.
If, however, you are looking to have your own private home for settling or enjoying your holidays in Morocco the choices are wider. If you require sea breeze and a climate with little variations all year round, then definitely you should consider buying in Tangiers, Rabat, Casablanca, El Jadida, Essaouira or Agadir.
Rabat and Casablanca are also major cities with plenty of cultural offer, restaurants and night life if that is a requirement of yours. And speaking of cities famous for their hustle and bustle, consider Marrakech, the tourism capital of the country, with a wonderful mix of ancient and modern.
WHAT IS THE PROCEDURE I SHOULD FOLLOW TO BUY A PROPERTY?
First of all, you should open a banking account in Dirham convertible. This procedure will allow you to transfer money from a foreign account to Morocco and to guarantee you can export the proceeds in case of resale.
- Sales in Morocco must be executed before a public notary to ensure your rights are protected.
- By law, the purchase fees will be paid by the buyer; they include registration and notary fees