Real estate promotions > Morocco > Buyer's Guide of Morocco
Buyer's Guide of Morocco
GENERAL INFORMATION
Morocco's currency is the Dirham. The Dirham’s ISO Code is MAD. The exchange rate between the Euro and the Dirham is approximately
INFORMATION ABOUT THE PURCHASE
If you are a resident in the Country, the property is purchased in Dirhams. If you are from outside Morocco, the purchase is made in Dirhams, but is paid for in Euros or other currencies. Paying in foreign currency allows the money to be taken out of the country (Morocco) at a later date.
Is the exchange rate guaranteed if payment is made in foreign currency?
The exchange rate is not guaranteed. As a general rule, Marina d'Or advises its customers to take out an exchange rate insurance policy with their bank. Nevertheless, the economy in Morocco is stable and is in itself a guarantee of stability.
Are the amounts paid guaranteed?
Marina d'Or takes out an insurance policy that insures the quantities handed over until the moment that the public deeds are signed.
Where are the deeds of sale signed? Can Marina d’Or sign the deeds for the customer?
The Public Deeds of Sales are signed in Morocco. If you are unable to travel to Morocco, Marina d'Or does offer the possibility of signing the deeds on your behalf.
If after having purchased the property I decide to sell, can I take the funds out of the country?
Yes, you can take the money out of the country once you have satisfied all applicable taxes, always given that you have paid for the property in foreign currency (Euros, Dollars ...)
What happens if I sell the residence after the purchase? What will I have to pay in taxes? Do I have to specify that the amounts paid into Marina d'Or Morocco's accounts in Spain, France, Ireland, the United Kingdom or any other country in the European Union are an entry of foreign currency for the purchase of real property, in order to take the funds out of the country in the future?
If you sell the property within 3 years of its purchase, you must pay the tax ministry 20% of the capital gain (the sales price less the purchase price adjusted according to an official coefficient). You must take into account that the minimum amount of tax that must be paid will never be lower than 3%.
On making payments into Marina d’Or Morocco’s bank accounts you must always clearly state the name of the purchaser, the building and the apartment number.
What conditions do mortgages have in Morocco?
Mortgages in Morocco are very similar to Spanish mortgages. The interest rate generally oscillates between 4.75 and 6%. Nevertheless, the rate, which is fixed by the Moroccan Central Bank, does vary.
Can I subrogate a mortgage taken out in Morocco?
Not officially. In practice, Marina d'Or will help you through all the steps necessary in order to get a more advantageous mortgage.
If there are any legal disputes, does jurisdiction correspond to Spanish or Moroccan courts?
If the sale is made in Morocco, then jurisdiction will correspond to Moroccan courts.
If the sale is made in Spain, France, Great Britain or Ireland, then unless a judge decides otherwise, jurisdiction will correspond to the Courts of Castellon, with the applicable law being Spanish law, with the following exceptions:
INFORMATION ON TAXES AND DOCUMENTS
- What is the legal currency in the country?
Morocco's currency is the Dirham. The Dirham’s ISO Code is MAD. The exchange rate between the Euro and the Dirham is approximately
- 1 €= 11.263 Dirham
- 1 Dirham= 0.086 € (Exchange rate May 2009), subject to daily fluctuation.
INFORMATION ABOUT THE PURCHASE
- Is the property purchased in Euros or in Dirhams?
If you are a resident in the Country, the property is purchased in Dirhams. If you are from outside Morocco, the purchase is made in Dirhams, but is paid for in Euros or other currencies. Paying in foreign currency allows the money to be taken out of the country (Morocco) at a later date.
The exchange rate is not guaranteed. As a general rule, Marina d'Or advises its customers to take out an exchange rate insurance policy with their bank. Nevertheless, the economy in Morocco is stable and is in itself a guarantee of stability.
Marina d'Or takes out an insurance policy that insures the quantities handed over until the moment that the public deeds are signed.
The Public Deeds of Sales are signed in Morocco. If you are unable to travel to Morocco, Marina d'Or does offer the possibility of signing the deeds on your behalf.
Yes, you can take the money out of the country once you have satisfied all applicable taxes, always given that you have paid for the property in foreign currency (Euros, Dollars ...)
If you sell the property within 3 years of its purchase, you must pay the tax ministry 20% of the capital gain (the sales price less the purchase price adjusted according to an official coefficient). You must take into account that the minimum amount of tax that must be paid will never be lower than 3%.
On making payments into Marina d’Or Morocco’s bank accounts you must always clearly state the name of the purchaser, the building and the apartment number.
Mortgages in Morocco are very similar to Spanish mortgages. The interest rate generally oscillates between 4.75 and 6%. Nevertheless, the rate, which is fixed by the Moroccan Central Bank, does vary.
Not officially. In practice, Marina d'Or will help you through all the steps necessary in order to get a more advantageous mortgage.
If the sale is made in Morocco, then jurisdiction will correspond to Moroccan courts.
If the sale is made in Spain, France, Great Britain or Ireland, then unless a judge decides otherwise, jurisdiction will correspond to the Courts of Castellon, with the applicable law being Spanish law, with the following exceptions:
- Moroccan laws will apply in areas related to the real property itself (signing of the public deeds, inscription in the property register...).
- In the purchaser’s home country, Consumer Protection law will be applicable. This type of law cannot be waived.
INFORMATION ON TAXES AND DOCUMENTS
- What taxes have to be paid and what are the costs associated with the purchase of a residence in Morocco?
The tax equivalent to VAT in Morocco is called TVA -Taxes sur le Valeur Ajoutée - (in English: “Taxes on the Added Value”). Its rate is 20%.
Other associated costs are: 0.5% in Notary Fees, 2.5% Registry Tax, and 1% in fees for the Property Register) - Can I deduct the TVA (equivalent to VAT)?
TVA is deductible if the purchaser is a company legally established in the country and it is dedicated to the commercial exploitation of the property (e.g. rental). - Do I have to pay IBI (Real Estate Property Tax)?
Yes, although it is less than 1%. A foreign purchaser who brings foreign currency into Morocco is exempt from paying this tax for five years. - Do I need to have a foreign resident's identification number (NIE) in order to purchase a property in Morocco?
No.
