Your guide to mortgages and finance in Morocco

Montaña Roja Estate Agents are both a Morocco Real Estate agency and a Morocco property developer and we pride ourselves on our commitment in helping you find your perfect Morocco investment property or new home abroad. Our fully trained multilingual staff are always on hand to help and offer advice on purchasing your overseas property.

If you are looking to purchase Moroccan property, then please read the following information that we have put together for prospective purchasers regarding Moroccan mortgages and taxes.

At Montana Roja we work with you to make sure you get the most attractive and flexible Moroccan mortgage. There are several large banks in Morocco such as Credit Du Maroc and BMCE who offer good rates on Moroccan mortgages.

Current interest rates are at about 7% for a variable rate mortgage.

Most banks will normally loan you up to 35% to 40% of your net salary without prior credit checks or confirmation of existing obligations and the mortgages are 70% of the property sale price for non-resident foreign property owners.

To help the mortgage application system move more swiftly it is advisable to have the following documents to hand. For employees you will need: attestation of employment, the last six months bank statements and your last three months payslip's. For business owners you will need: company statutes and bylaws showing who owns the company, certificate of incorporation, the last two years company tax statements and the last six months company bank statements.

The Moroccan legal system is Latin-based and similar to that found in France and Spain. Property purchasers should allow for around 5% of the purchase price extra. This is made up from registration fees, Notary's Tax, Notary's fees, Land registry and Sundry expenses.

The system usually works with the prospective buyer opening a Euro account with a bank in Morocco and then transferring Sterling or Euros to this account. The Euros will then be converted into Dirhams when paying the seller.

A buyer will generally have to pay a 10% deposit, the normal time for completion is 6/8 weeks and the buyer will need to return to Morocco to complete the purchase.

We have many associates in Morocco who can arrange building work, from small items to major refurbishment or new housing and can organise care-takers, cleaners and rental agencies.

The Moroccan tax system is quite complex so it is always advisable to get expert tax advice before making an investment. Capital gains tax or Taxe sur les Profits Immobiliers (TPI) is 20% of the profit with a minimum of 3% of the sale price. TPI is based on the sale price less the purchase price.

The purchase price normally includes credit expense, registration costs, Notary fees and tax, repairs brokerage fees and inflation (based on a government table).

There is a double tax treaty between the UK and Morocco that ensures investors do not suffer Capital Gains tax in both countries.

For more detailed mortgage or tax information please contact us and speak with one of our advisors on the purchase of Moroccan property.

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