Morocco

Why Buy Property in Morocco?

Despite being only a three-hour flight from the UK, Morocco is a world apart. From the ancient cities of Tangier, Marrakech, Fez and Casablanca to the sprawling arid desert, Morocco certainly provides something different for today’s overseas property buyer.

Morocco benefits from having coasts on both the Atlantic and the Mediterranean, giving visitors the choice of beach locations.

The choice of property in Morocco is just as varied, with new-build apartments, townhouses and villas competing with traditional riads and dars. It is this mixture of old and new which makes property in Morocco unique – thanks to clever planning and design, old architecture is complimented by its modern counterparts. But the real icing on the cake is the country’s property prices, as no matter what type of home you go for, it simply won’t break the bank.

Popular property buying locations

If you are after a city home, the choice tends to be between Fez and Marrakech. Fez was Morocco’s first Islamic city, and today these roots are still clearly visible. The city obtained UNESCO World Heritage site status in 1981, and the funding received enabled the old medina to be fully restored.

Meanwhile, Marrakech has the advantage of an established tourist and property market – it was here that the trend for riad restoration took off. However, as a result, property prices in the city can be higher than elsewhere in the country. Property on Morocco’s coastline is also proving increasingly popular, and the resort of Mediterranea Saidia is a prime example. Home to huge inward investment, this coastal town will soon be home to five golf courses, an 850-berth marina, a wide range of bars and restaurants, no less than ten four- and five-star hotels and beach clubs. This part of the northern coastline is attracting considerable government investment under the ‘Plan Azul’ to attract tourists in huge amounts to Morocco in the next few years.

The process of buying property in Morocco

Once you have decided that you want to buy a home or property in Morocco, it is important to choose a notaire. The notaire plays a big role in the Moroccan property buying process, and so life will simply be easier if you have one arranged from the outset. Your notaire will then obtain the title deeds of the property. The signing of the final contract itself must happen in front of the notaire, although if you are unable to travel to Morocco, you are able to sign over power of attorney for someone to sign on your behalf. When the final contract is signed the remainder of the balance is due, including any fees and taxes.

Moroccan property: Legal Issues

Many new-builds are now being offered with building guarantees for the quality of the finish and construction.

Properties without the correct title deeds are commonplace in Morocco but, despite what you might hear, it is imperative that you do not purchase a property without the correct documentation. If you are not in possession of the title deeds, you do not officially own the property – regardless of how much you paid.

Property Financing

As there are no British banks in Morocco, it is not possible to get a loan secured on your Moroccan home from a UK financial institution. You are able, however, to raise finance through a Moroccan bank up to 70 per cent of the value of the property.

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 will still work out cheaper if you able to raise finance in the UK – perhaps by remortgaging an existing property.

Fees and taxes

There are two main types of tax status in Morocco – tax resident and non-tax resident. If you spend more than 183 days per annum in Morocco you will be considered a tax resident.

When buying property in Morocco you will need to budget for 2.5 per cent estate agency fees, 2.5 per cent registration tax, as well as 0.5 per cent notary tax. You will also be liable for annual local taxes (similar to our council tax), but these are relatively low. When you come to sell your property you will be liable for capital gains tax of 20 per cent unless it has been your principle residence for ten years. There is no such thing as inheritance tax in Morocco.

Visas, residency and work permits

British citizens do not need a visa to enter Morocco for stays up to 90 days.

If you are planning on working in Morocco you will need your employer to apply for a work permit on your behalf.

New-build versus resale properties

The choice between new-build and resale properties really depends on your personal circumstances, wants and needs. New-builds also tend to offer coastal locations and, if you are planning on renting your property out, established rental management schemes with guaranteed returns.

However, if you were attracted to Morocco by its vibrant culture you may simply prefer to plump for a charming riad or dar.

Property in Morocco: Investment potential

The building boom in Morocco has been compared to that of Spain 15 years ago. Thanks to a government aim to increase tourism to the country to ten million by 2010, resorts have fast been springing up along the country’s coastline. Many ‘emerging’ markets simply lack the basic infrastructure needed to support a burgeoning property market, but King Mohammed’s £2.2 billion contribution will ensure that all necessary facilities and amenities are in place.

Health and education

International schools take children from the age of three, and offer a wide range of facilities.

Transportation to and within Morocco

There is a wide range of charter airlines that fly into Morocco, especially during the summer season. British Air

ways also operates daily flights into the country, as does national carrier Royal Air Maroc, while Ryanair flies to Fez and Marrakech and easyJet has recently launched flights to Marrakech from London Gatwick.

Once in Morocco there is a range of internal flights

available, but be aware that these can be expensive. If you prefer to drive, there is a wide choice of car hire firms in all of the major destinations.

The train network in Morocco has a great reputation however, with high-speed, air-conditioned services frequently operating at very reasonable prices. Despite this, if you are planning on travelling south, be aware that the network ceases in Marrakech.

And finally…

It is not essential for estate agents to be registered in Morocco, and therefore you should tread extremely carefully.