PROPERTY IN MOROCCO
Morocco is located on the north western coast of Africa with coastal areas on both the Atlantic Ocean and the Mediterranean. The population of 33 million enjoys a stable economy and a stable government
Tourism is one of the most progressive sectors in the country and enjoyed a constant growth of between 3%-7% per year for the last decade.
Morocco is the closest to Europe African country and at the same time it offers all the exotic features of the orient – centuries old culture, legendary hospitality, delicious cuisine, all combined with beautiful nature and mild climate.
Morocco offers a wide variety of activities like climbing, hunting, fishing, horse back riding, skiing, golf, spa, safari, sky diving, all kinds of water sports, yachting, etc.
Islam is the official religion in the country and there is tolerance of other religion groups.
Morocco has a most diverse and exceptional climate. The coast has a warm, Mediterranean climate tempered on the eastern coast by southwest trade winds.
The Dirham is the local currency. It is stable and 1GBP is equal to 16 Dirham approximately
Morocco participates in the so called Blue plan – A Sustainable Future for the Mediterranean.
WHY MOROCCO?
What do you think of when someone mentions Morocco? Probably Marrakech, the Casbah, exotic Medinas and the desert. But that’s only half the story, there is so much more to this stunningly beautiful North African country. Like neighbouring Spain, it has miles and miles of Mediterranean coastline… but unlike Spain, it’s still mostly undeveloped.
Morocco’s recent popularity as an overseas property destination is a result of the nation’s new king, Mohammed VI’s enthusiasm and vision for the future. A moderniser, he came to the throne in 1999 with promises of more jobs, greater freedoms and new prosperity.
Vision 2010.
In 2001 the government introduced Vision 2010 with the aim of bringing 10million tourists to Morocco every year. Already the number of visitors has swelled from 4.2million to seven million. Last year European budget airlines were allowed to fly into the country, opening up the market even further. EasyJet now flies daily to Marrakech, Ryanair has flights to there and to Fez, while British Airways and Royal Air Maroc fly into Agadir, Casablanca and Tangiers as well. Flights to Tangiers from Heathrow cost from £266 in April, although you can fly to Gibraltar or southern Spain for half that and catch the short ferry hop across the Med.
INVESTMENT PROPERTY MOROCCO
Mediterranean Coast
Many of the popular areas for new developments are on the Mediterranean coastline east of Tangiers. At present it takes an hour or so to drive there from the airport, but with many new motorways and new infrastructure that time will be cut dramatically.
The new road is one of many major improvements being carried out to the infrastructure of the area, with around £5billion also being spent on transport and communication upgrades.
Going hand in hand with this is the investment in tourist resorts. Big money is coming in from the likes of Dubai, Qatar and Spain. The new developments are mostly dotted around Tamuda Bay, which runs from the Spanish enclave of Ceuta, where you can catch ferries to Spain, down to Cabo Negro.
BUYING PROPERTY IN MOROCCO
WHY BUY PROPERTY IN MOROCCO?
♦ It’s cheaper. At less than half the price of Spain you get more for your money.
♦ Morocco is less than 3 hours flying time from England and most other European cities
♦ There is excellent growth and investment potential.
♦ The Moroccan government is actively supporting and promoting resort areas to attract foreign owners.
♦ It’s largely unspoiled.
♦ Blends “Western” comforts (restaurants etc) with North African adventure.
♦ Friendly locals, great food and relaxed pace of life.
♦ Low cost of living
♦ The climate is warm and sunny with extremely low rainfall.
♦ Morocco aims to attract over 10 million visitors by 2010.
♦ The countryside is stunning and mountainous, with beautiful Mediterranean and Atlantic beaches!
TAXES
The Moroccan government has some very helpful tax breaks to foreign buyers.
Capital gains: 20 per cent for first 5years, 10% for next five years, zero after 10 years
Rental Income: No tax on rental income for the first five years.
THE COSTS
Moroccan banks offer mortgages at rates between 4.2 per cent and 5.5pc for up to 70pc of the property’s value over 15 years.
Fees – you should budget for about 5pc to 6pc of the property price.
- Transfer tax, 2.5pc.
- Legal fees, 1.1pc.
- Notary fees, 0.5pc.
- Land registry, 1.5pc to 2pc