BUYING PROPERTY IN MOROCCO
FAQS
In a bid to check the uncontrolled movement of capital, the Moroccan
State has instituted rules regarding the investment of foreign
currency in the country.
The Foreign Exchange Bureau is advised and consulted by the Notary
regarding any commercial transaction entered into by foreign citizens.
It is important to understand that no transaction should be entered
into without the services of a Notary. In the event of a resale
you may like to know that there is no problem regarding the repatriation
of funds including the increase in value of the property; you
are however liable to pay legal taxes at the current rate.
Convertible Currency Accounts
Funds from abroad must be transferred to a ”convertible
currency account” in Morocco which ensures a mode of convertibility
in favour of the foreign investor (Dahir 15/9/92). This account
will enable you carry out your investment operation in Morocco
and will guarantee you any income from the investment (e.g. interest)
as well as the repatriation of your capital in the event of a
resale.
BUYING A PROPERTY IN MOROCCO
If you are seriously considering a property investment in Morocco
we advise you to open a convertible currency account whilst you
are in the country (a small deposit is sufficient). This will
allow you to move quickly when you find a property that interests
you. You can instruct the Notary to make an offer on a property
on your behalf and also launch a possible procedure of titration.
Ask your bank for a chequebook – you will then be able to
sign a provisional sales agreement at the Notary’s office
and deposit a cheque with him. You can then instruct your bank
abroad to transfer the necessary funds to your convertible currency
account in Morocco.
In order to activate the cheque you have deposited with the Notary
you will then need to instruct your bank in Morocco to transfer
the required amount to the Notary’s account. The provisional
sales agreement then becomes valid.
You now have two options.
First, if the house or property you have decided to buy has title
deeds and is acknowledged by the ”cadastre” you decide
upon the takeover date with the seller. You can immediately finalise
the process at the Notary’s office by paying the purchase
price of the property in full. Transfer the amount to your convertible
currency account, then request your bank in Morocco to transfer
this to the Notary’s account. The property now belongs to
you.
Second, if the house or property is not acknowledged by the ”cadastre”
and lacks title deeds (very common in Morocco), you will have
to ask the Notary’s office to enquire about the ”requisition
number” and a procedure of titration will be launched. If
there is a problem you will be given your money back. You then
decide upon the takeover date with the seller and you can now
finalise the process at the Notary’s office as above.
Investment Property in Morocco
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