FAQ's for Morocco

Who can purchase property in Morocco? Any investor, overseas or resident, can purchase in Morocco. Are the properties Freehold? All our properties in Morocco are 100% freehold. Where are the six Government sponsored resorts being built? The Mediterrania-Saidia resort is located on the Mediterranean coastline, near the popular resort town of Saidia. Port Lixus, near Larache on the northern Atlantic coast.This resort will feature two 18-hole golf courses along with high quality hotels, beautiful residential villas and a 120-berth marina./li> Mazagan, near El Jadida, on the Atlantic coast. Mogador, near Essaouira, on the Atlantic coast. Taghazout, near Agadir, on the Atlantic coast. Plage Blanche, on the south Atlantic coast. Is it possible to get a mortgage as a non resident of the country? Yes, Moroccan banks sometimes lend up to 100% but 60% of the property value is standard. Am I free to choose my mortgage and bank? Yes, but we can help to negotiate favourable terms for our clients with some major banks. Do I need a bank account in the country? Yes, we can arrange that for you with the local branches of the major Moroccan banks. You only need to have a bank account in place in time for title deeds and completion of purchase. How do I transfer money? You can use your own bank or a currency-exchange broker such as IMS FX (www.IMSFX.org) How do I reserve a property? We will reserve your chosen property for a maximum period of 14 days. To do this you will need to pay an initial holding deposit of €3000 or £2000. This gives you the time to either visit Mediterrania-Saidia or to purchase site-unseen. The deposit is fully refundable should you choose not to proceed. Please note that we do offer Inspection Trips to Mediterrania-Saidia for £249 per person. What is the payment structure? On exchange of contracts, 20% of the purchase price is payable (less the initial holding deposit). A second payment of 20% is due when construction works commence i.e. when groundwork and foundations are started (this is anticipated to be November 2006). On completion, the outstanding balance of 60% is due either by mortgage or cash to complete your purchase. Completion is planned for 4th Quarter 2008. What are the purchasing costs? You should budget for about 5 to 6% over the purchase price to cover: Stamp duty: 2.5%, Legal Fees: 1%, Notary fees:0.5%, Land Registry: 1.5% to 2%, Dispatch fees: approx. €30, Misc. Certificates: €30 What are the ongoing costs besides water and electricity? We estimate community charges of approximately € 60/monthly. Do I need a solicitor? Normally you can use the local notary but we advise you to secure the services of a good legal firm. We can recommend an excellent UK based legal firm familiar with Morocco and the development that can be used. Is it possible to rent the property out? Yes, definitely. All owners are tax-exempt on any rental income for the 1st five years in Morocco. The resort will have on-site Property and Rental Management offices for clients to utilise. What are the taxation rules in the country? Both the UK and the USA have double tax treaties with Morocco, which ensures that Capital Gains Tax (TPI) is not paid in both countries. In Morocco, TPI is 20% of the profit with a minimum of 3% of the sales price. If you sell your property after 10 years of ownership, you are fully exempt from TPI. Owners who sell their property after five years but within ten years are subject to TPI of 10% of any capital gain over 1 million DRh (€ 65,000). There are no death duties as long as the property stays within the family (however, it is advisable to seek professional tax advice as individual circumstances and company purchases of property can alter your tax liabilities). Can I sell my property before completion? You can sell your property to a third party once the initial 20% instalment has been paid. The Developer will charge a transfer/administration fee of approx. € 500. Selling on your investment is very easy and can be facilitated by your solicitor. Who can tell me more about the culture, history and economics? Moroccan Embassy, 49 Queens Gate Gardens, London SW7 5NE, Tel: 020 7581 5001 In 1999, Prince Sidi Mohammed was declared His Royal Highness King Mohammed VI of Morocco. After his enthronement, the King revealed his ambitious development plans for the country. In 2001, the Moroccan government presented Vision 2010 as Morocco’s national tourism strategy (Plan Azur). The main objectives are to increase the number of visitors to Morocco from 2m in 2002 to 10 m in 2010 and to create 600,000 new jobs in the tourist sector. In conjunction with Plan Azur, the Moroccan government has announced: The creation of 6 new coastal resorts (5 on the Atlantic Coast and 1 on the Mediterranean Coast) New Motorways to be built or upgraded New Regional Airports to be either built or upgraded Increase and de-regulate incoming flights from all over Europe Tourism is on the rise - Tourist trade expected to increase fivefold between 2002 and 2010, under the government’s Plan Azur initiative. Infrastructure and resources are receiving much investment and undergoing huge improvement. Favourable investment conditions - Morocco actively encourages foreign investment with his Royal Highness King Mohammed VI creating conditions which do not differentiate between foreign and national investors and are attractive to the foreign buyer. Travel - Direct flights from the UK (approx. 3 hours), with several international airports located within a short drive to resorts. New Moroccan Open Skies Agreement will usher in low-cost airlines by 2007. Weather - Morocco’s climate is moderate and subtropical, cooled by breezes off the Mediterranean Sea and Atlantic Ocean. Marrakech has an average winter temperature of 21ºC (70ºF). The Mediterranean coastline is situated in a micro-climate with warm Mediterranean breezes as well as cooling air from the Atlantic – Gibraltar Straits. A mountain backdrop frames the coast. Average weather conditions are reliably dry and approximately 3-5° warmer than Spain’s Costa del Sol. Pricing - Prices are significantly lower than in Spain’s Costa Del Sol. Extremely spacious and high-specification 2/3 bed apartments starting at approx. £103,000 and 3 bed villas starting at approx. £180,000. Growth - Expect significant capital growth and guaranteed rental income. Activities – New Resorts include private beaches, beach clubs, multiple golf courses, marinas, Aqua Parks, hotels, international brand shops and restaurants.