Buying real estate in Morocco (a villa, riad, or apartment) can be an excellent opportunity for non-residents. In fact, property acquisition is not restricted to Moroccans or residents of the Kingdom. As a tourist, you can absolutely purchase a villa in Marrakech, a riad in Essaouira, or an apartment in Casablanca. Property prices per square meter are generally very attractive compared to those in most European countries. However, buying real estate in Morocco without being a resident must be properly regulated. It is essential to take some precautions. Our real estate agency, LUDIMMO, is here to support you in this project and help you complete your transaction with peace of mind.
The essential role of real estate agents in Morocco
If you do not reside in Morocco, skipping a real estate agency is not an option. It is the agency, and more specifically its team of real estate agents, that will act as intermediaries and help you avoid many pitfalls. They can select properties that match your profile and arrange visits during your stays. You should never buy a property in Morocco without visiting it first. This rule applies in all countries.
Real estate agents can gather essential information about the property, such as its cadastral registration. They will also inform you about what type of property you can or cannot purchase. For example, foreigners are limited to a one-hectare plot in agricultural zones.
Using a Moroccan real estate agency while living abroad is therefore a safeguard against scams and administrative difficulties. The presence of expatriates within the agency is an added advantage, as they have a dual culture that allows them to better understand clients' expectations while having in-depth knowledge of the local real estate market.
The issue of taxation: an important point for real estate purchases in Morocco for non-residents
Investing in Morocco allows you to enjoy a vacation home while also generating additional income from renting out the purchased villa, apartment, or riad. However, it is also important to plan for the future. If you intend to resell the property and repatriate the funds to your home country, certain precautions must be taken at the time of purchase.
The repatriation guarantee
To transfer abroad the proceeds from the sale of a property in Morocco, certain conditions must be met. The repatriation guarantee applies only to investments made in foreign currency and registered with the Office des Changes. This means that the buyer must have paid for the property using foreign currency through a convertible dirham account. If this condition is not met, a non-resident will have to spread the repatriation of funds over four years (25% per year).
For more information, we recommend reading our article dedicated to the repatriation guarantee..
The taxation of real estate capital gains
The real estate profit tax (TPI) applies to Moroccans, foreign residents, and non-residents alike. This tax is levied on the capital gain made when reselling the property. The taxation rate is 20% (or 30% under certain conditions).
Moroccan residents abroad (MRE) can benefit from an exemption from this tax if the sold property is either their primary residence or that of a family member they are housing free of charge.
Key takeaways:
- Can a non-resident buy real estate in Morocco? Yes, but they may face restrictions on property choices. For example, in rural areas, they cannot purchase land exceeding one hectare.
- Why is it recommended to go through a real estate agency? The real estate agent will offer you registered properties and protect you from potential scams. They will also assist you with all administrative procedures.
- Why should you buy with foreign currency? This allows you to benefit from the repatriation guarantee, enabling you to transfer the proceeds from the property's resale back to your home country.
Which type of real estate should you buy in Marrakech?
If you decide to take the leap and become a property owner in Morocco, you have a wide range of real estate options. You can choose an apartment in the city center to be close to all amenities and enjoy the local cultural (exhibitions, museums, etc.) and social life (restaurants, bars, etc.). You also have the option to buy a luxury real estate such as a villa with a swimming pool and a large garden. Prices are much more affordable than in France, for example. However, if you're looking for something more traditional, consider buying a riad in a medina. This will allow you to fully immerse yourself in the Moroccan way of life.
