Real Estate (Morocco)
Investing in foreign real estate brings a good income with the right approach. Such investments are usually made in a tourist country. The purchase of real estate in Morocco is one of these possible investments. The country has perfect weather almost all year round due to the wonderful climate. It is most profitable to buy real estate in tourist countries, where there is a constant influx of people who bring you income. For example, you can join the hotel business and 11 months of the year there will be no end of people who want to settle in your hotel. The fact is that tourism is the sector of the economy that brings most of the income to the local budget. Previously, real estate in Morocco was not so popular, but people constantly have the opportunity to explore different parts of the world, and tourists in Morocco are becoming more every year. Reducing the number of tourists can not be afraid, because every vacationer in Morocco feels like a king, thanks to the excellent service. It is not surprising that at different times Charlie Chaplin, Alain Delon, Claudia Schiffer, the Beatles, Michael Schumacher, Madonna, Winston Churchill and many others liked to relax here. Most of the stars have already managed to get their own real estate in Morocco.
Local real estate is not expensive. A local villa can be quite purchased for 150,000 euros, although it will be very simple. If we talk about a solid, fully equipped villa in a prestigious area, it will cost 300,000 euros. But this is only the cost of the construction itself. More problematic in the country is the situation with the land. The land here is truly expensive and its value can be compared with the cost of expensive real estate. But in any case, investing in real estate in Morocco is a profitable investment. Only one tourist business will help to recoup all costs. Morocco even has a government program under which Morocco should become the leading tourist country in the world. Investors who establish their businesses here help the government to cope with this task.
Investing in Moroccan real estate became more affordable in 2005, when entry to this country became visa-free. On the territory of Morocco, it is only necessary to present a foreign passport, the validity of which will expire no earlier than six months after the end of the trip. And tourists are not allowed to stay in Morocco for more than three months. By the way, you can get a residence permit in this country not only by buying real estate. Even if you rent a house, when you provide a rental contract, you have every chance to get a residence permit. There are several differences that distinguish real estate in Morocco from real estate in other countries. Most notable is the fact that each property has its own name in addition to a specific address.
Often buying a property in Morocco for living, you have to do repairs. It’s not the poor condition of the building, but the decoration that is too unusual for us. The interior has to be redone almost always. You will also need to pay land tax (1% of the property value) and registration tax (2.5-5% of the property value). The local population is not afraid of criminals, because they are not here. There are almost no offenses in the country, which may indicate that everyone is happy with everything. After the purchase of real estate, you will only have to pay all taxes and live in peace.
Real estate acquisition procedure
Buying a property in Morocco
According to Moroccan law, the procedure for buying real estate includes: drawing up a purchase and sale agreement, notarizing the transaction and making a corresponding entry in the state register.
However, when registering property rights to real estate, there are some features, namely, when drawing up a contract of sale, the individualization of each building is taken into account (in addition to the address, each building has a name), and the application of all previously settled disputes related to the building (if any) is also included. The contract is certified by a notary (notary services – 1.5-2% of the cost of the object).
Taxes depend on the type of property being purchased:
Registration tax (2.5% of the cost for residential premises and 5% of the cost for commercial real estate)
Land tax (1% of the value for all types of real estate)
As for rental taxes, for new buildings for the first 5 years, rental income is not subject to taxation, for objects of the secondary real estate market – 2%.
After 5 years, rental income is subject to taxation in the amount of:
from 0 to 300 euros = 0%,
from 301 to 600 euros = 10%,
from 601 to 1200 euros = 16%,
from 1201 to 2400 euros = 20%,
from 2401 to 3600 euros = 24%,
from 3601 to 6000 euros = 28%,
from 6000 euros = 30%.
The tax on the resale of real estate is 20%.