Becoming a homeowner in Morocco as a foreigner
If you're dreaming of becoming a homeowner in Morocco as a foreigner, you've come to the right place. The Moroccan real estate market offers unique opportunities, whether for buying a villa in MarrakeshA riad in Essaouira or an apartment in Casablanca. Affordable prices compared with many European countries make this an attractive option. However, it's important to take a cautious, well-informed approach. Our clear and simple guide will take you through the essential steps to realize your dream of buying a property in Morocco.
If you're wondering how to buy a house in Morocco as a foreigner, what mistakes to avoid when buying property in Morocco, or how to sell a property in Morocco as a Frenchman, you've come to the right place. We'll also explore investment opportunities in Marrakech and explain the procedure for selling property in Morocco. Get ready to discover the keys to becoming a homeowner in this beautiful country.
The Essential Role of Real Estate Agents in Morocco:
If you don't live in Morocco, using a real estate agency is a crucial step. These experts will be your guides and save you a lot of hassle. They will select properties that match your criteria and organize visits during your stay. It's essential to visit the property in person before buying - a rule that applies all over the world.
The real estate agents in Morocco are your allies in gathering essential information about the property, such as its land registry. They will also be able to advise you on the types of property you can acquire. For example, foreigners have restrictions on acquisition of land in agricultural zonesA qualified agent can guide you through these complex details.
At Celestia Invest, we're proud to be recognized as a prestigious and trusted real estate agency. We understand the challenges that non-residents can face when buying property in Morocco, and that's why we're here to support you every step of the way. We can help you with all the administrative formalities, ensuring a smooth transaction. Trust us to make your dream of buying property in Morocco a worry-free reality.
Tax and legal precautions
Now that you've understood the importance of real estate agents, it's time to look at another crucial aspect: taxation and legal precautions.
When investing in Morocco, you may consider using the property as a pied-à-terre for your vacations or even as a source of income through rental. However, it's essential to think ahead, especially if you plan to resell the property and repatriate the money to your home country.
One of the key points to consider is the retransfer guarantee. This concerns the possibility of transferring money abroad from the resale of a Moroccan asset. This guarantee only applies to investments made in foreign currency and registered with l’Office des Changes. This means that it is preferable to use foreign currency via a dirham convertible account. Otherwise, in the absence of this procedure, funds will have to be repatriated gradually over a period of four years (at a rate of 25% per year).
Another crucial point is the taxation of real estate capital gains. The 'Taxe sur le Profit Immobilier (TPI)' applies to everyone, whether Moroccan, foreign resident or non-resident. It concerns the tax on profit realized on the resale of a property. The tax rate is 20%, but can reach 30% in certain situations.
It is important to note that Moroccans living abroad can benefit from an exemption from this tax if they sell a property which is either their main residence, or that of a family member whom they are accommodating free of charge.
In short, it's crucial to take these tax and legal aspects into account when buying property in Morocco. These precautions will enable you to approach your investment with confidence and serenity.
Land Law and Real Estate Acquisition in Morocco
Now, let's talk about land law and what it means for you as a foreign buyer.
It is important to note that land law in Morocco is not the same everywhere. Some regions follow traditional rules, while others are governed by the land registration system introduced by modern law. The latter offers important guarantees. For example, the property acquired obtains a specific land title with its own name, number and delimitation. Furthermore, the Moroccan Land Office can issue a certificate of ownership confirming the identity of the owners and any encumbrances on the property.
It is essential to emphasize that all property sales must be registered in an authentic manner, either by a notary, a notarial or adoulary deed, or a deed drawn up by a lawyer approved by the Court. If you hold Moroccan nationality, even if you have another, the Moroccan authorities will always consider you to be exclusively Moroccan. As far as residency is concerned, this depends on whether you spend 183 days or more per year in the country.
As far as foreign currency transactions are concerned, it is important to note that the Moroccan dirham cannot be converted automatically. This is subject to control by the Office des Changes. However, if the purchase is financed by a foreigner or a Moroccan resident abroad with foreign currency deposited in a convertible dirham account, it is possible to convert the sale price into foreign currency and transfer the funds out of Morocco, provided you can prove their origin and have paid all Moroccan taxes.
In summary, understanding Moroccan land law is essential for a foreign buyer. It ensures that your investment is properly protected and registered. Don't forget to take these elements into account during your real estate purchase process.
Foreign currency transactions
Now let's talk about foreign currency transactions and what this means for you as a foreign buyer.
It is important to know that the Moroccan dirham cannot be automatically converted into other currencies. This is strictly controlled by the Office des Changes. This means that when you buy property in Morocco, it's best to use foreign currency via a dirham convertible account. This will enable you to benefit from the retransfer guarantee, which authorizes you to repatriate the money from the resale of the property to your country of origin. To do this, however, you need to prove the legitimacy of the funds during the purchase procedure. Make sure you have paid all Moroccan taxes before repatriating the money.
If you don't follow this procedure, the transfer of funds will take place gradually over a four-year period, at a rate of 25% per year. That's why it's essential to plan your purchase carefully and take this important step into account.
If the property is sold to a foreigner or a Moroccan resident abroad, the price received can be converted from dirhams to foreign currency, enabling you to transfer the funds out of Morocco. However, this can only be done if you can justify the origin of the funds during the acquisition procedure.
In conclusion, understanding currency transactions is essential when buying property in Morocco as a foreign buyer. This will enable you to plan your purchase carefully and ensure that everything runs smoothly. Don't forget to take these crucial steps into account during your buying process.
Legal stages of acquisition
Now that we've covered the aspects of foreign currency transactions, let's dive into the essential legal steps for acquiring property in Morocco.
First of all, it's crucial to stress that the process for a non-resident is similar to that for a resident. However, extra care must be taken with the question of financing. This will enable you to benefit from the possibility of transferring invested funds and capital gains outside Morocco, in compliance with foreign exchange regulations.
It is imperative to note that a Moroccan living abroad has the option of having one of his or her properties in Morocco treated as his or her principal residence for tax purposes, even if "factually" this is not the case. This offers considerable advantages in terms of local taxes and capital gains tax in the event of resale.
In summary, the process of acquiring property in Morocco for a foreigner follows the same steps as for a resident. However, particular attention must be paid to the question of financing, to ensure that funds can be transferred out of Morocco in full compliance with regulations. If you are a Moroccan resident abroad, you may also be able to benefit from attractive tax advantages. Make sure you understand these steps so that you can successfully complete your real estate project in Morocco.
Conclusion:
Congratulations, you're now well prepared to take the plunge and become a homeowner in Morocco as a foreigner. By following the steps and advice we've outlined, you can approach the process with confidence.
At Celestia Invest, we're here to support you every step of the way. As a prestigious and trusted real estate agency, we specialize in helping foreign buyers acquire property in Morocco. Please do not hesitate to contact us if you have any questions. or to benefit from our expertise. We're here to make your dream of owning a property in Morocco a worry-free reality. We look forward to helping you find your piece of paradise in Morocco.
