Morocco offers a unique investment opportunity for those looking to own property in a country rich in culture and history. Whether you’re considering a vacation home along the vibrant coasts of Agadir or a permanent residence in the bustling streets of Casablanca, understanding the process is crucial. Here’s your essential guide to navigating the real estate market in Morocco as a foreigner.
Becoming a Property Owner in Morocco
Foreign Ownership: In Morocco, foreign nationals can become 100% owners of their properties. This is particularly advantageous as you do not need Moroccan residency to purchase property or open a bank account here.
Financial Considerations: Approximately 10% of the property’s final sale price will account for additional costs. These include:
- Agency fees: Roughly 3% (excluding VAT)
- Notary fees, registration fees, and taxes: Around 6 to 7%
These fees ensure all your legal bases are covered, making the buying process smooth and compliant with Moroccan law.
The Property Sale Process
Making an Offer: Once you find your ideal property, you’ll submit a written offer. If accepted, both parties will agree on terms and conditions which are laid out clearly after negotiations.
Choosing a Notary: A crucial step is selecting a notary who will handle the legal documentation. The notary plays a vital role in preparing the sales agreement and ensuring all documents are correctly filed.
Payment Methods:
- Bank Transfer: You can open a Moroccan dirham account and transfer the funds directly, ensuring all financial dealings are secure.
- Direct to Notary: Alternatively, sending funds directly to the notary’s bank ensures your money is safely held until the property transfer is complete.
Setting Up a Mortgage in Morocco
Down Payment: A minimum of 30% down payment is typically required. Interest Rates: Expect interest rates to be between 5% and 7%. Mortgage Length: The maximum term for a mortgage is usually 180 months (15 years).
Debt Capacity:
- Income less than 20K MAD: Debt ratio capped at 35%
- Income up to 40K MAD: Debt ratio capped at 40%
- Income over 40K MAD: Debt ratio can go up to 45%
Essential Documents for a Mortgage
To apply for a mortgage, you’ll need:
- Identification: A photocopy of your passport and a current address proof.
- Financial Records: Recent tax returns, payslips for the past 12 months, and personal bank statements.
- Additional Documentation: If applicable, include any proof of other personal income or amortization plans for ongoing debts.
Conclusion
Buying property in Morocco as a foreigner is an exciting prospect, but it comes with its set of requirements and procedures. By preparing adequately and understanding what to expect, you can ensure a smooth transaction and enjoy the benefits of owning property in this beautiful country.
If you’re looking for professional assistance to navigate the complexities of the Moroccan real estate market, I highly recommend BH Adviser. They are a well-established firm known for their expertise in legal matters and tax processes. Their team includes English-speaking experts who can guide you through every step of your property purchase, ensuring that all legalities are handled with precision and care. Trust BH Adviser to make your journey to property ownership in Morocco both successful and stress-free.
