BUYER'S GUIDE



What is the legal currency in the country?

Morocco's currency is the Dirham. The Dirham’s ISO Code is MAD. You can consult the exchange rate at the following link: FOREX Dirham-Euro 1 Dírham= 0,092 € (Exchange rate November 2011), subject to daily fluctuation.


Is the property purchased in Euros or in Dirhams?

If you are a resident in the Country, the property is purchased in Dirhams. If you are from outside Morocco, the purchase is made in Dirhams, but is paid for in Euros or other currencies. Paying in foreign currency allows the money to be taken out of the country (Morocco) at a later date. (Morocco).


Are the amounts paid guaranteed?

Marina d'Or takes out an insurance policy that insures the quantities handed over until the moment that the public deeds are signed


Where are the deeds of sale signed?


The Public Deeds of Sales are signed in Morocco.


If after having purchased the property I decide to sell, can I take the funds out of the country?

Yes, you can take the money out of the country once you have satisfied all applicable taxes, always given that you have paid for the property with foreign currency (Euros, Dollars ...) and you fulfil applicable conditions.


Is the exchange rate guaranteed if payment is made in foreign currency?

The exchange rate is not guaranteed. As a general rule, Marina d'Or advises its customers to take out an exchange rate insurance policy with their bank. Nevertheless, the economy in Morocco is stable and is in itself a guarantee of stability.


What conditions do mortgages have in Morocco?

Mortgages in Morocco are very similar to Spanish mortgages. The interest rate generally oscillates between 4.75 and 6%. Nevertheless, the rate, which is a variable rate fixed by the Moroccan Central Bank, does vary.


Can I subrogate a mortgage taken out in Morocco?

Subrogation is not available in Morocco.


If there are any legal disputes, does jurisdiction correspond to Spanish or Moroccan courts?

If the sale is in Morocco, then jurisdiction will correspond to Moroccan courts. If the sale is made in Spain, France, Great Britain or Ireland, then unless a judge decides otherwise, jurisdiction will correspond to the Courts of Castellon, with the applicable law being Spanish law, with the following exceptions:
Moroccan laws will apply in areas related to the real property itself (signing of the public deeds, inscription in the property register.
In the purchaser’s home country, Consumer Protection law will be applicable. This type of law cannot be waived.


What happens if I sell the residence after the purchase? What will I have to pay in taxes? Do I have to specify that the amounts paid into Marina d'Or Morocco's accounts in Spain, France, Ireland, the United Kingdom or any other country in the European Union are an entry of foreign currency for the purchase of real property, in order to take the funds out of the country in the future?

If you sell the property within 3 years of its purchase, you must pay the tax ministry 20% of the capital gain (the sales price less the purchase price adjusted according to an official coefficient). You must take into account that the minimum amount of tax that must be paid will never be lower than 3% . You must always clearly state the name of the purchaser, the building and the apartment number.



- INFORMATION ON TAXES AND DOCUMENTS -


What taxes have to be paid and what are the costs associated with the purchase of a residence in Morocco?

The tax equivalent to VAT in Morocco is called TVA -Taxes sur le Valeur Ajoutée - (in English: “Taxes on the Added Value”). Its rate is 20%.
Other associated costs are: 0.5% in Notary Fees, 2.5% Registry Tax, and 1% in fees for the Property Register).


Can I deduct the TVA (equivalent to VAT or General Sales Tax)?

TVA is deductible if the purchaser is a company legally established in the country and it is dedicated to the commercial exploitation of the property (e.g. rental).


Do I have to pay IBI (Real Estate Property Tax)?

Yes, although it is less than 1%. A foreign purchaser who brings foreign currency into Morocco is exempt from paying this tax for five years.


Do I need to have a foreign resident's identification number (NIE) in order to purchase a property in Morocco?

No