Buying a property in Morocco

The process of buying a property in Morocco has been greatly simplified over recent years, particularly for foreigners. Residential property is sold freehold, with apartment owners acquiring a share of the freehold. Before commencing the purchasing process, it is advisable to open a bank account with a bank in Morocco, one designated in Euros, and to appoint a legal representative. When you find a property you will make a verbal offer, which we will pass on to the seller. At this point you may need to make a small deposit to take the property off the market; this may be refundable. When agreement is reached on the price a preliminary contract giving the terms and conditions of the sale is drafted, which can either be a standard form or, preferably, through a lawyer. The seller must present the melkia (title deeds), which will show any encumbrances on the property such as mortgages or rights of way. At this point the buyer will need to make a further deposit, which could be up to 30% of the sale price, although this is negotiable.

The balance is due at the final contract, either through a bank transfer or via a mortgage – several mortgage lenders in the country specialise in arranging mortgages for foreign property buyers, with a mortgage of up to 70% of the purchase price payable over 15 years. When the final contract (Sale and Conveyance Deed) is signed the new ownership of the property will be registered with the Land Registry. The additional costs associated with the purchase of a property in Morocco should amount to around 6.5% of the purchase price, which includes costs such as legal fees, notary costs, stamp duty and registration of ownership. Purchase tax is levied at 14% on new-build properties, although this will generally be included in the price. There are ongoing property and other annual taxes, although these differ according to district. New properties are exempt from the annual property tax, with the amount thereafter determined by the rental value of the property. There is no capital gains tax after the property has been owned for five years, and inheritance tax is zero for family members, although it is highly advisable to make a Moroccan will detailing the disposal of the property in the event of your death.