About Morocco

Living There 

With a rich and fascinating culture to explore in a landscape of outstanding natural beauty, Morocco offers a unique experience that continues to attract tourists. Whether on the vast sandy beaches or amongst the bustle of the most vibrant markets in the world, it is easy to discover why Morocco is set to be the ‘next big thing’ in real estate with ambitious development plans undertaken by King Mohammed VI to ‘put Morocco on the map’. With perennial sunshine ranging from the warm Mediterranean climate of the coast to the hotter climes inland, Morocco caters for everyone.
 
Economy 

Morocco is the fifth economic power in Africa, after South Africa, Egypt, Algeria and Nigeria. Its largest industry is the mining of phosphates although it also relies on tourism which is the third largest industry in the country. The reforms undertaken by the King and his government extend to all economic sectors, including the infrastructure, telecommunications, electricity, banks, insurance, education, health services with a view to maintaining them to the world-class standards. 

Politics 

Morocco is a parliamentary constitutional monarchy where the King is head of state and executive power is vested in the Prime Minister who is head of government in a multi-party system. The King, however, has extensive powers and is responsible for appointing members of the government upon the recommendation of the prime minister.

Buying Guide and Process 

Once you have found the property in which you want to invest, it is usual to make a verbal offer and then negotiate the price. Upon this offer being accepted, a preliminary agreement (Compromis de Vente) will need to be drafted by a notary (notaire).

Investment Guide and Facts 

Morocco is currently becoming one of the world's leading luxury property emerging markets. Along the Mediterranean Sea and North Atlantic Ocean coastline development is sparse at present and huge opportunities exist to target the tourist hotel or villa rental market as well as second homers and retirees seeking their perfect home. Excellent high-quality builds can be purchased at a relatively low cost and because the Moroccan government is acutely aware of the need to attract foreign investment they have simplified and further legitimised property buying laws. This, coupled with the fact that the government have long term plans to structure their economy to allow for free US and European/Moroccan trade, makes the country an attractive prospect for investors. 

Price Per Square Foot 

Apartment prices in Marrakech reach up to GBP 302 per sq. ft. with an average price of GBP 291 per sq. ft. Marrakech Riads sell at an average price of GBP 416 per sq. ft. In Casablanca, apartments are rented at an average of GBP 1.58 per sq. ft.

Rental Yields 

Marrakech rental yields on apartments are at an average of 8.23%, with the smallest apartment of 197 sq. ft. generating the highest yields at 8.86%. 

Mortgages 

There are built-in mortgages in place for investors in Moroccan property. When purchasing a Moroccan property, it is possible to borrow up to 70% of the value of the property for up to 15 years from a Moroccan bank. Current interest rates on Moroccan mortgages are around seven per cent and so, while these can be arranged on both a variable and fixed-term basis, it may well still work out cheaper if you able to raise finance through remortgaging your home property.

If you do decide to borrow from a Moroccan bank, be aware that they will only lend up to 40 per cent of your net salary. It is also important to note that not all Moroccan banks will lend to overseas buyers and that those that do will only supply repayment loans as there are no interest-only mortgages.

Capital Gains Tax 

Capital Gains Tax is levied at 20% of the sale price if the property is sold within the first five years (with a minimum of 3%), 10% between 6-10 years, and 0% thereafter. 

Rental Income Tax 

Residents and non-residents alike will be required to pay Income Tax on rental income in Morocco.
The first three years can be exempt from tax, but thereafter investors are taxed on 60% of their generated income at levels between 22% and 44%. In Tangier, for example, a buy-to-let investor would be subject to a tax of 22% on 60% of the rental income after 3 years.