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Morocco - Buyers Guide |
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It’s essential to engage a reputable, experienced local solicitor. You will also need to open a euro bank account in Morocco and will transfer Sterling or Euros to this account. The Sterling or Euros will then be converted into Dirhams when paying the seller.
All transactions are overseen by notaries and most properties are freehold. Foreign nationals may take a mortgage from Moroccan banks ( up to two-thirds of the purchase price ).
An initial holding deposit is usually all that is needed to secure a property for 21 days – giving you time to visit the project or buy " site unseen ". |
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15% of the purchase price is then payable on exchange of contracts, and a further 25% is split into 8 equal payments until completion The final 60% is then paid
either in cash or via a mortgage.
The legal system is Latin-based and similar to that in France and Spain. You should budget for about 7% of the purchase price to cover:
| Stamp duty |
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2.5% |
| Legal fees |
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1.1% |
| Notary fees |
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0.5% |
| Land registry |
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1.5 to 2% |
| Dispatch fees |
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about 500 DRh or €30 |
| Misc (certificates) |
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about 500 DRh or €30 |
Capital Gains Tax (TPI) is 20% of the profit, with a minimum of 3% of the sale price. There is a dual tax treaty between the UK and Morocco to ensure that tax is not paid in both countries. Properties sold after more than 10 years ownership are fully exempt from TPI. Properties sold after more than 5 years ownership but less than 10 years are subject to TPI of 10% of any capital gain over 1 million DRh (about €90,000). Foreign investors are allowed to sell at any time and enjoy free repatriation of capital.
Moroccan Embassy, 49 Queens Gate Gardens, London SW7 5NE 020 7581 5001 |
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