Property clinic: Sales tax in Morocco
April 16th, 2009 by Barry Cashin
Q. Having recently become benefactors of a family inheritance, we would like to buy a property abroad which we can visit as well as rent out during the summer months. We quite like Morocco. Can you tell us a little about the typical prices and sales taxes we might have to pay?
A. Morocco has a lot to offer tourists and investors alike – and, as a hotspot, is becoming a major attraction for those wishing to invest in holiday rental property due to its excellent climate and relative close proximity to mainland Europe. The topography of Morocco also lends itself perfectly to beach resorts which give excellent rental potential, with a number of high-end developments having been constructed in recent years.
The process for purchasing property in Morocco is fairly straightforward. The buyer, once an offer has been accepted, is usually required to pay a deposit of around 30% to secure the property and freeze the price. For property costing £100,000, expect to pay around £2,500 in transfer tax, roughly £1,000 in lawyer’s fees and a further £2,500-£3,000 for notary’s fees which include land registry and other certificates. My best advice is to do lots of research, visit your target area several times before buying – as well as talk to UK investors who have already bought property out there to find out the pitfalls. One of the key benefits of owning Moroccan property is that there is no inheritance tax.
