Buying a Property in Morocco - Agadir

The town of Agadir derives its name from the phoneicians and in Berber it means"Wall, masoned Wall enclosing Town, Fortress" all of which serve to describe Agadir very well. Located on the Atlantic coast of Morocco, Agadir is growing in popularity with Investors in Overseas Property due mainly to the current low price of property and the potential Agadir property offers for equity growth.

A stong tourist market, particuarly with Northern Europeans who are attracted by Agadirs comfortable winter climate, midday temperatures of 20 - 25C, plus favourable exchange rates and low living costs also underwrites the investment potential of property for sale in Agadir.

Agadir has a thriving port which is base to a large fishing fleet, the harbour entrance is flanked by a long sandy beach fronted by many shops and European style bars and restaurants.

Why should I buy property in Morocco.
The fact you are reading this article certainly suggests you know that Morocco is probably one of the best places to invest in property. Offering a lifestyle choice, buying a property in Morocco could be the best move you ever make. Reasons for purchasing abroad still exist in Morocco, offering 300 days of sunshine each and every year, fabulous unspoiled beaches, with a relaxed lifestyle, all for a fraction of the cost than the usual destinations.

Below are can find a few facts about Morocco:

Morocco was a protectorate of France during 1912 and 1956.

Mohammed VI is Morocco’s youngest progressive King.

The capital city of Morocco is Rabat. With other major cities that include Casablanca, Marrakech, Fes and the free port of Tangier.

The official language in Morocco is Arabic. English, French & Spanish are also widely spoken in the northern coastal regions.

Morocco’s currency is the Dirham (MAD)

Buying a Property in Morocco

Mortgages are available from Moroccon Banks on a repayment basis over 10 yo 15 year terms. Maximum Loan to Value is 70%. The legal sysyem has much in common with the French legal system and well established and as long as you use an independant lawyer.

Property Taxes

The Moroccan property tax system is complex therefore you should get professional tax advice as this will depend and vary on your personal circumstances, in summary the elements you should budget for are:

Tax on Rental Income

The first three years can be exempt of tax, but afterwards owners are liable for 60% of their rental income at a rate between 22% and 44%.

Annual Property Tax

Owners are liable for an annual property tax. The first five years are exempt after which tax is due based on the annual rental value of the property. The table below gives an approximate guide to the taxes due:

Value Tax

Less than 3,000dh 0%

between 3,001 and 6,000 dh 10%

between 6,001 and 12,000 dh 16%

between 12,001 and 24,000dh 20%

between 24,001 and 36,000 dh 24%

between 36,001 and 60,000 dh 28%

more than 60,000 dh 30%

Property Rental Tax

If, as an owner you do not live in the property at all, a tax of 13.50% on the rental value is liable.

Garbage Collection Tax

There is no Garbage collection tax liable for the first five years, from then on it is charged at 10% of the property's annual rental value.

Capital Gains Tax

If the property is sold within five years, capital gains tax is charged at 20% of the profit with a minimum of 3% of the sale price. A property sold between six and ten years of ownership will pay 10% capital gains tax and 0% thereafter. Capital gains tax is based on the sale price less the purchase price, no costs can be included.

Inheritance Tax

Generally there is no inheritance tax for properties where the ownership transfers to a family member.

UK-Morocco Tax Treaty

There is a double tax treaty in place between Morocco and the UK and this protects the investor from being liable for capital gains tax in both countries.

Corporate Tax

If you are investing in several properties in Morocco, it may be beneficial to create a Moroccan private limited company.

Read more about owning or buying a property for sale in Morocco from Overseas Property Centres.

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