General
There are several large banks in Morocco such as Credit Du Maroc and BMCE who offer good rates on Moroccan mortgages for overseas buyers.

How Much / At What Cost?
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.

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

Arrangement fees are between 1.5% and 2%.


Criteria / Documentation
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.


Process
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.

Tax
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.

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

 click here to get a quote now

- See also:
- Caribbean Mortgage
- Italian Mortgages
- Spanish Mortgages
- French Mortgages