Financial details
Reasons for investing in Morocco
- Low property prices compared with other popular areas.
- New, modern road and rail connections across the entire country.
- Tax-free income for the first five years when renting property.
- No inheritance tax when property is made over to other family members.
- Favourable capital gains tax.
Investment
Type: Freehold.Capital appreciation: 15% to 20% appreciation (based upon 3 years in local market).
Investment summary: Rental return estimated 8% annual yield.
Mortgage: 70% maximum, subject to status, approximately 5% interest, on 15 years period.
Taxes & other costs:
- Registration fees 2.5% of purchase price (if sold within 3 years of purchase the rate is increased to 5%).
- Notary's tax 0.5% of purchase price.
- Notary's fees 1% of purchase price (to a maximum of approx. 300 Euro).
- Land registry 1% of purchase price.
- TPI (capital gains) 20% of taxable profit - if the property is sold within 5 years. If the property is sold before 10 years capital gains is charged at 10%. After 10 years 0%.
- Sundry expenses approx. 250 Euro.
- Taxes and other costs totally approximately 5% of purchase price + 250 Euro.
Maintainance and service fees: Aprox. 1500 to 2000 Euro per annum depending on the size of the villa.
Rental: Part of rental income will be used to cover management and marketing costs.
Purchase and payment
- Choose your plot, sign a reservation agreement and pay 5000 Euro deposit to secure your villa.
- Sign the reservation contract and pay 25%.
- 15% of the price due on completion of the roof.
- 60% of the price due on delivery.
Available villas
A list of available villas can be found hereDownload current financial report
Morocco Investment Report 08