Morocco Property Buyers Guide
Below is a MRR and PLR article in category Finance -> subcategory Real Estate.
Morocco Property Buyers Guide
Introduction
Located just 14 kilometers from the coast of Southern Spain, Morocco offers an easily accessible and exciting opportunity for property buyers. With a progressive government and vibrant culture, it’s becoming an increasingly attractive location for owning property.
Why Choose Morocco?
Many are turning to Morocco as an alternative to the crowded and expensive resorts in Spain. Prices remain affordable and investment-friendly, with property values having tripled over the last five years. The buying process is comparable to that in Spain or France, and expert advice is readily available. A significant influx of French homeowners adds reassurance to European buyers.
The Buying Process
Buying property in Morocco is straightforward, and the country is well-prepared for overseas buyers.
1. Finding a Property:
Local agents, known as Simsaars, can assist in locating properties. A reliable simsaar will ensure clear ownership, avoiding legal issues. They charge 2.5% of the purchase price as commission.
2. Property Inspection:
Before purchasing, it's wise to hire an architect or structural engineer for a property inspection, costing around 500 to 700 Dirhams (€60).
3. Placing a Deposit:
Initially, you’ll pay a deposit of approximately 10% of the purchase price. Be aware that the seller may still accept higher offers, but they must return your deposit. Paying an additional 20-30% secures your purchase.
4. Contract Finalization:
The process takes about 6 to 8 weeks. You’ll sign the purchase contract at the Notary office or appoint a power of attorney.
5. Security Measures:
Change the locks after purchase, and consider hiring a trustworthy guardian to stay in the property if you’re absent. This costs about 1,000 DH (€100) per month.
The Role of the Notary
The Notary in Morocco ensures there are no outstanding debts and all paperwork is in order. Unlike in France or Spain, the Moroccan Notary creates and signs all documents, charging up to 1% of the total costs. They are neutral, representing neither buyer nor seller.
Financing Options
Mortgages are available, covering up to 50% of the property’s valuation. Payments can be made in Euros, US Dollars, or Sterling, requiring transfer to a Moroccan bank to convert into Dirhams.
Titles and Deeds
Older properties may have historic scrolls rather than official deeds. You can create an official title by paying a notary fee of 1%, facilitating bank mortgages and potentially enhancing resale value. New properties typically have deeds.
Inheritance Considerations
Morocco’s inheritance laws can complicate property purchases, requiring agreement from all claimants. A local simsaar can manage these complexities, although it may be a lengthy process.
Tax Implications
The Moroccan tax system mirrors the French model. Capital gains from rentals are taxed at 15% annually, with a three-year exemption for new owners. Property tax is based on annual rental value, with a 75% discount if it's your primary or holiday home. Family members are exempt from inheritance tax, but drafting a Moroccan will is advisable without revoking your existing will.
Legal Fees
Legal costs are around 6%, lower than in France and Spain, though they may rise to 10% for properties needing renovation.
Key Areas
Tangier: Formerly a cosmopolitan hotspot, Tangier is evolving as a massive port development shifts industrial activities elsewhere. Properties along the Atlantic and Mediterranean coasts are varied and accessible, only a 35-minute hydrofoil ride from Spain. The city may regain its exclusive status, offering promising investment opportunities.
Inland Areas: Cities like Marrakesh and Fez are highly sought after. While properties tend to be pricier, traditional Riads offer more affordable options, some needing renovation but full of charm.
Conclusion
With its rich culture, improving infrastructure, and welcoming investment climate, Morocco presents a unique opportunity for property buyers seeking an alternative to Europe’s crowded markets. Whether looking for a modern home or a traditional Riad, there is something for every taste and budget.
You can find the original non-AI version of this article here: Morocco Property Buyers Guide.
You can browse and read all the articles for free. If you want to use them and get PLR and MRR rights, you need to buy the pack. Learn more about this pack of over 100 000 MRR and PLR articles.