Buying property in Morocco is becoming increasingly popular with overseas investors as more people realise what Morocco can offer them. One such offer is high quality developments being constructed at bargain prices. Many of the properties are aimed at the luxury market and they have been fitted with exceptional features and facilities. This is all helping Morocco to become famous as the foremost destination for buying investment properties.
Morocco is steeped in history and is seen as a magical and mystical world that beckons travelers and tourists alike. Rabat, the Moroccan capital, is a modern day city that still holds its old world charm. The coastline is a favourite with tourists and destinations like Casablanca (made famous by the 1942 American romantic drama) and Marrakech are by all. Morocco is expected to become increasingly fashionable as a tourist destination, therefore investor forecasters are predicting that property prices will keep on in increasing in value.
Morocco has various hot spots that attract some of the world’s rich and famous, such as Saidia and Tangier. Currently the property market in Morocco is emerging as one of the top most developing markets with tremendous potential for investment, which is particularly good news considering today’s economic climate in the UK. The Moroccan government is taking an active role in improving the property market. They have implemented various initiatives, such as the King’s Vision 2010, to boost the country’s tourism and infrastructure, which in turn will improve the property market and economy in the country.
Once you’ve decided where you want to buy a property in Morocco, the next step is to seek legal advice so you don’t make any expensive mistakes. Anyone wanting to turn their property investment into a buy-to-let property will need to pay tax on the income, although the first three years will be exempt of tax. If the property is sold within five years, a capital gains tax is levied based on the sale price less the purchase price. There is some good news regarding tax: because there is a UK-Morocco Tax Treaty in place between the two countries, this protects the investor from being liable for capital gains in both countries.
When it comes to choosing the type of property you want to buy, be prepared to take time, effort and commitment, especially if you want to find an unusual traditional style of property. Know your budget and stick with it, and take photos of each property you view so you can remember each one. Once you have found your property, you will need to place a verbal offer to the seller via the estate agent; bear in mind that negotiation is rarely an option when buying property in Morocco. The seller will then decide if the offer is to be agreed or if the price is to be raised. It is your choice to decide if you want to take the sale of the property forward or to walk away. If you want to proceed, the next step is to draw up a compromis de vente („a pre-contract signed by the seller and buyer of a property that involves a two-way promise that amounts to a provisional sales agreement“) which is preformed by a notaire (ministry official). Once you have received the compromis de vente you have two weeks in which to change your mind. If you want to proceed there are several more steps to complete and then the property is yours to enjoy.
Buying property in Morocco is an exciting opportunity for investors; not only will you have a property in an exciting country, but you’ll have a property that could give you a really healthy return on your investment.