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Purchase Process in Morocco

Buying a new build property in Morocco is straightforward and similar to European countries:

• Although you do not legally require a solicitor in order to buy a Moroccan property, it is highly recommended as the notary will not provide you with independent legal advice.
• Firstly, a reservation contract must be signed.
• Title deeds, signed at the local notary, are handed over on completion and full payment.
• One issue to be aware of is that the country is a relatively new market and as such does not have bank guarantees, so choosing the right developer with a good track record is key.

Costs of a standard property purchase in Morocco include the following:

• Legal fees range from 1% to 3% of the purchase price and are paid by the buyer.
• Estate agents fees of 2% to 2.75% are paid by the seller.
• Taxes on completion come to around 5% of the purchase price. This includes stamp duty, 2.5% registration tax and 0.5% notary tax.
• Capital gains tax is 20% on profits over €60,000.
• After five years, capital gains tax reduces to 10% and after ten years it reduces to zero.
• If you are planning on renting out your property once it's completed there is no rental tax for five years.
• There is no inheritance tax if you leave your property to a family member.

The Obelisk Advantage:

As Obelisk approaches its projects purely from an investment perspective, its priority is to deliver each real estate product with an emphasis on simplicity and transparency throughout the purchase process. Therefore, Obelisk has already identified the purchase procedure for its clients as a simple, four step process:

1. The client chooses and reserves the unit that best suits their investment requirements, and Obelisk takes the client through a compliance procedure.
2. An independent lawyer, sourced and appointed for the client by Obelisk, will have already carried out full due diligence on the real estate product. They will issue all purchase contracts and paperwork to the client.
3. On receipt of this contract, the client will sign and make the first payment. The lawyer will notify the client of all further payments when required.
4. The appointed lawyer will also represent the client in all aspects legally required within the country of purchase, ensuring that clients of Obelisk enjoy the benefits of simple and hassle-free real estate investment.

Read more about moroccan tax and mortgage and buying property in Morocco.