GENERAL INFORMATION
Capital of Morocco: Rabat
Surface area of Morocco: 720,000 km2
Moroccan Population: 32,805,000 inhabitants
Languages Spoken in Morocco: Arabic Berber, French, Spanish
GDP/per capita (dollars): 4.200 US $
Religion: Islam (98.7 % Muslims)
The Kingdom of Morocco is at the farthest west point of the Arab world and North Africa just under the Strait of Gibraltar. Morocco is strategically located with both Atlantic and Mediterranean coastlines, and a rugged mountainous interior.
Morocco was a French protectorate from 1912 to 1956, when Sultan Mohammed became king. He was succeeded in 1961 by his son, Hassan II and then in 1999 he was succeeded by his son King Mohammed VI.
Morocco's capital city is Rabat. Other major cities in Morocco are Marrakesh and Fez as well as the ports of Casablanca and Tangier.
INSPECTION VISITS
As developers of various complexes in Morocco we provide organised trips from Spain for those clients wishing to visit. These can be as short as a one day round trip leaving the port of Tarifa early morning and returning the same evening or, overnight stays in Tangier in a four star hotel. All visits will be accompanied by a member of our company together with a suitable vehicle. All costs involved, including those of our staff, together with those of the client will be charged at cost price. Upon a client purchasing a property in Morocco, these costs are fully refundable. The ferry crossing from Tarifa to Tangier takes just 40 minutes and there are many ferries available during the course of each day.
We are currently offering developments in and around Tangier, the furthest afield at present are those situated in the inland village of Chaouen, approximately one and a half hour drive away. In the future, we hope to introduce complexes in Marrakech which will entail visits of at least one overnight stay.
TRANSPORT & COMMUNICATIONS
Visiting Morocco is becoming easier and cheaper. EasyJet now flies direct to Marrakech in the south of the country whilst Ryanair goes to Fez in the north and soon to announce new routes to Morocco. Once inside the country there is a network of trains from north to south, car hire is relatively inexpensive. From Spain there are high speed ferries from Tarifa and Algeciras, the shortest taking just 40 minutes. A return ferry trip from Tarifa to Tangier is only 60€ per person. If you decide to take a car there is a brand new motorway running from Tangier in the north down the Atlantic coast to Rabat (the capital) and onto Casablanca. This also branches off to Fez. Currently under construction a new section from Tangier along the Mediterranean coast towards the new Port of Tangier, the largest in the whole of Africa, and onto the Spanish territory of Ceuta. Petrol is cheaper than in Europe and the country roads and motorways in general are quiet during the week, busier at the week-ends.
LEGAL SYSTEM
Purchasing a property in Morocco is much the same procedure as in Spain. All properties have a title deed which is signed before a notary and registered in the Land & Property Register. Although some taxes vary slightly to Spain, the total amount payable is in the region of 5% of the price paid.
This is made up as follows:
- Registration fees 2.5%
- Notary's Tax 0.5%
- Notary's fees 1.0% to a max of 2,500Dh
- Land registry 1.0%
- Sundry expenses 2000 Dh
- Dh = Moroccan Dirhams also know as MAD
Buyers will open a Euro account with a bank in Morocco and will transfer Sterling or Euros to this account. The Euros will then be converted into Dirhams when paying the seller.
All properties will be freehold but in most cases of old houses, deeds will need to be created. There is no Vat on the purchase of property.
RATES & TAXES
There are many tax and utility advantages, normally during a period of the first five years, where purchasers are exempt from paying local property rates and taxes, and tax due on rental income. All of these considerations are for the purpose of promoting tourism within the country.
CAPITAL GAINS
Upon selling a property there are no restrictions on the repatriation of funds. Capital gains tax (Taxe sur les Profits Immobiliers - TPI) runs at 20% of the profit with a minimum of 3% of the sale price. If you sell your property after ten years no capital gains tax is payable. Owners who sell their property after five years but within ten are subject to 10% TPI of any capital gain over 1.000.000 Dh (Dirhams), approx. € 65,000. There are no death duties as long as the property remains within the family (although expert legal advice should always be sought in such circumstances).
MORTGAGES
In conjunction with mortgage specialists we can arrange finance for the purpose of purchasing a property in Morocco. In the case of a non-resident of Morocco purchasing an off-plan property, 70% of the purchase price can be obtained. Mortgage rates in general are below 5% per annum.
RENTING
You may freely rent your property, not forgetting that all income is exempt from all tax for a period of five years. Given that property purchase prices in Morocco are much lower than in Spain, the net return is proportionally higher, in some cases as high as 10% per annum, depending of course on the price paid for the property.
UK- MOROCCAN TREATY
There is a double tax treaty between the UK and Morocco that ensures investors do not suffer Capital Gains tax in both countries. This agreement has also been extended to the following countries: Belgium, Canada, France, Germany, Italy, Luxembourg, the Netherlands, Norway, Romania, Spain, Sweden, Tunisia and the United States.
NATIONAL and RELIGIOUS HOLIDAYS
National:
January 1: New Year (Gregorian calendar)
January 11: Independence Manifesto
March 3: Throne Day
May
1: Labor Day
May 23: National Day (Amendment of the Constitution)
July 9: Youth Day (King's Birthday)
August 14: Commemoration of Oued Eddahab
August 20: Revolution of the King and the People
November6: Commemoration of the Green March
November 18: Independence Day.
Religious Holidays:
They are observed for 2 working days. Since they are based on the Lunar calendar, their dates vary each year and are fixed after the sight of the moon.
1st of Moharram: New Year (Muslim calendar)
12th of Rabi Al Awal: Aid El Mawlid (Birth of the Prophet Mohamed)
1st of Shawwal: Aid El Fitr (end of Ramadan)
10th of Dhu Al Hijja: Aid El Adha (Commemoration of Abraham's sacrifice)
TIME REGION
Morocco revives daylight saving schedule in 2008.
For the first time since the late 1970s, Morocco will use daylight saving time to alleviate energy costs and to align itself timewise with neighboring European countries. Morocco will observe daylight saving time by moving the clock one hour forward (UTC+1) at midnight between May 31 and June 1 in 2008. During the summer, Morocco is now only 1 hour ahead of Europe. The country will return to its official standard time (UTC+0) by reverting the clock one hour back at midnight between September 27 and September 28 in 2008.
Update: As from 1st September 2008, Morocco is now two hours behind Spain and CET, and one hour behind the UK.
For more personalised information and prices regarding an organised visit to Morocco, please don’t hesitate to contact us.
Grupo Inmobiliario ESPMAR
Calle El Barrio, 53, 1º
Nerja, 29780 (Málaga)
Tel: (00 34) 95 252 8424 / 95 252 2661
Fax: (00 34) 95 252 2661
email: Contact us.
Web: www.espmar.com
(NOTE. This guide, although accurate, has been kept as brief as possible. Please do not hesitate to enquire further on any point. Please note, also, that the guide is not a substitute for proper legal advice. The contents herein are correct at the time of publication. Grupo Inmobiliario ESPMAR cannot be held responsible for any changes in the law, or legislative practices in Morocco.)
