Why people Invest in Morocco?
Morocco is a beautiful North African nation which is one of the best tourist destinations in the region. What makes Morocco so unique is that while it is very easily accessible to people from European nations and is just a 2-hour flight away from London or Paris, Morocco is a different world altogether, one where life moves at a much more leisurely pace.
Morocco has busy, bustling markets, a very friendly local population and some of the world’s best beaches. The beaches in Morocco are very diverse because Morocco has both the Mediterranean coast as well as the Atlantic coast. Skiing can also be done in winter at the Atlas Mountains, which offers another great possibility.
There is a variety of choices available to foreign investors looking to buy property in Morocco. There are modern apartments, townhouses, villas as well as the very traditional riads and dars. But even the traditional buildings have modern amenities, so buying one shouldn’t pose much of a problem.
Morocco listed among top destinations for 2020 :
“Ancient medinas are getting a makeover in Fez, Essaouira, Meknes, Tetouan and Marrakesh, which will be crowned Africa’s first Capital of Culture in 2020 in celebration of its rich heritage,” the publication said
Morocco means business. It is modernising property-buying processes for foreigners who are looking to buy holiday homes. “It was incredibly difficult for a foreigner to buy just five years ago, but now it’s pretty easy,” says Tony Roberts, who has just become the Marrakech-based representative of the upmarket UK estate agency Savills. The firm’s move into this market is a sign of how many Britons are now interested in this North African country
There are no figures on the level of foreign ownership of property in Morocco, but there is a wide choice of homes across the country in diverse locations, from sandy beaches to snowy peaks
- Any newly built property, or an older one sold in the past five years, will be fully documented with a titre foncier and a number lodged with the Moroccan land registry. But if you want to buy a traditional riad that has not already been sold since 2000, it will probably have an Islamic melkia title, which are not strictly recognised by the Moroccan land registry. “If you buy a property or a farm or parcel of land that has a melkia title, you must get signed approval and acceptance of the sale from all members of the owning family,” says Tony Roberts. “This transaction has to be recorded by an adoul, ascribe recognised under shariah.” Mr Roberts recently sold an old riad in Marrakech and had to obtain 13 family signatures from people based in Marrakech and other Moroccan locations including Tangier, Fez and Casablanca, plus one living in Switzerland.
- Once you agree the purchase with the owner, you should budget for 6 per cent extra to cover stamp duty (2.5 per cent of purchase price), legal fees (0.5 per cent), notary fees (0.5 per cent) and land registry (up to 2 per cent).
- 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 nightlife 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