Has any UK resident had experience of selling their Moroccan property

    I am British and have owned a property in Morocco for a number of years (Agadir area).  I would now like to sell my house and would be interested to hear of other British people's experiences of selling their Moroccan property please.  What taxes had to be paid and is it different if you are not Moroccan and not a Moroccan resident?  How easy is it to repatriate the money from the sale?Thanking you in advance        -@Karoline Smith

As a British individual looking to sell your property in Morocco, there are several key points to consider regarding taxes and repatriation of funds: (must speak to you appointed notary to see if any changes in laws as regulation changes quite often) Below is just a guidance only

1. Capital Gains Tax: In Morocco, if you sell your property within the first five years of ownership, you'll be subject to a 20% capital gains tax. However, if the property is sold after 10 years, there is no capital gains tax. This provides a significant benefit for long-term investors.

2. Repatriating Funds: The process for repatriating funds from the sale of property in Morocco can be straightforward, especially if the initial investment was made in foreign currencies through a convertible dirham account. This allows for easier traceability and transparency with the Office of Foreign Exchange. If the purchase was financed partially by a Moroccan bank loan, it's possible to transfer the sale proceeds out of Morocco without restrictions, provided the loan amount does not exceed 70% of the property's price and the remaining is financed in foreign currency. Without the garantie de retransfert, repatriation of funds would need to be spread over four years at a rate of 25% per annum.

3. Other Taxes and Fees: When selling a property, you're responsible for a 3% tax if there's no capital gain. There's also an allowance for legal costs and fees which reduces the taxable amount. Additionally, the cost of building work with legitimate receipts and the value of furniture in the property can be excluded from the capital gains tax. Moreover, if the property has been your main home for over eight years, you may be exempt from capital gains tax.

4. Property Exchange: Another option to consider is property exchange, which is gaining popularity in Morocco. This method allows you to diversify your real estate investments without significant cash transactions and may provide some tax advantages, like deferring capital gains tax liabilities

5. Legal and Financial Advice: Given the complexities of tax laws and repatriation procedures, it's crucial to seek professional guidance. This includes consulting with legal and tax experts, and possibly involving a notary public to oversee transactions and ensure compliance with Moroccan real estate laws

6. Professional Assistance for Transactions: Engaging professional agents and notaries can facilitate the selling process, especially given the strict regulations in Morocco. They can assist with valuations, marketing strategies, and ensuring legal compliance

In conclusion, selling your property in Morocco as a non-resident British citizen involves understanding the local tax system, exploring options like property exchange, and ensuring compliance with legal and financial regulations. Professional assistance is highly recommended to navigate these complexities effectively.

Regards

Arif Esa

@Karoline Smith

if you can show that the money was originated from abroad by a way of transfer or bank ( What is called Dirham convertible ). you should be able to exchange it or transfer it via the same way you brought it in.

When selling a property in Morocco and repatriating the funds, the process can be streamlined if the investment was initially made in foreign currency and properly registered. The "garantie de retransfert" is a crucial element in this process. It allows non-residents to repatriate their funds and profits after taxes are settled following the sale of real estate in Morocco. To take advantage of this garantie, the real estate must have been acquired using foreign currencies transferred to a convertible account in Moroccan dirhams. This account facilitates the transfer of necessary foreign currencies for the property purchase and ensures traceability and transparency with the Office of Foreign Exchange.

Moreover, Morocco's exchange regime allows foreign investors to recover their investments and the profits generated. This system is specifically beneficial to non-residents who have invested money in Morocco. Investments under this regime must be financed in foreign currency, and there are specific forms of investment that qualify for this regime. It's important to note that foreigners and non-residents have more flexibility regarding transferring dividends, interest, and other benefits acquired in Morocco, as well as the freedom to transfer share selling profits.

Additionally, foreign investors in Morocco are generally allowed to freely transfer abroad the entire proceeds of their investments, including dividends, shares sale price, and liquidation income, provided the initial investment was made in one of the foreign currencies listed by the Moroccan Central Bank. However, specific transfers of funds into and out of Morocco may require prior authorizations from the exchange control office.

It is advisable for anyone involved in such transactions to consult with financial experts or legal advisors who are familiar with Moroccan property laws and international finance to ensure compliance with all regulations and to facilitate the process (Your Notary that is appointed for the sale will notify you of the most recent rules. and taxes that must be paid before funds can be sent out. Rules change frequently so its advisable to discuss it with the notary to avoid any costly mistakes.)

Regards

Arif Esa

@Karoline Smith I am wondering if you went ahead and sold your property in Morocco?

I am British/American and have a property in Casablanca I want to sell and wondering if you found good professionals to help you with the process?

@Vakil  Thank you so much for this information!  Very useful.  If the house is not my main home (I do not live there) but I am selling after 10 years - does it still mean that I have NO capital gains tax to pay? 

@rachelbaldi1  Hi Rachel,  I intend doing my own advert to start with, rather than using an agent - also using 'word of mouth' in the area. 

If/when I find a buyer, I will use the same Notaire that I used to buy the property originally.

@Karoline Smith Hello! where in agadir is your house located? We are looking to buy.

It is actually further south, in Sidi Ifni, but the nearest airport is Agadir.

@Karoline Smith Love it there and if we were looking for a holiday home i’d inquire further. Best of luck!

Thank you!

@sgrab Good afternoon. what kind of proerty are you looking for in Agadir.

I have a nice house in Agadir in Dcheira Jihadia. the area is 15-20 drive to Agadir/ beach. it has two levels and a massive 100m2 roof terrace. if you like more information please message me. thanks

@Said Idouarab Hi Said - thank you. My husband has a home in Dcheirra already. Best of luck with the sale!

@sgrab 🙏

@Karoline Smith

Is your property still for sale? Do you have any photos you could message me with and what is the ball-park price?

Kind regards,

Deborah

@Said Idouarab

Hi Said,

Do you have any photos of the property you have for sale in Dcheira? Also, what is the price?

@deborahannebee  Dear Deborah Apologies for not replying sooner - I only just saw your message!  I am still  thinking of selling but have not actually advertised the house yet.  The house is in Sidi Ifni which is some way south of Agadir.   Let me know if interested and I will send photos and an approx price.

Best wishes

Caroline

@Karoline Smith

Hi,

I have only just seen this so apologies now for my delay!

Yes, I am still interested. Photos would be a great place to start.

Many thanks,

Deborah

@deborahannebee I have land to sell in Taza Morocco

@deborahannebee Hi Debora, I have land in Morocoo, If you are interested let me know. Regards

@Fahd Mohmid

where abouts and does it have a building permit or something like we have here in UK called planning permission to build a structure on a land from the council.

@Fahd Mohmid  yes of course do you need a client

@Vakil

Thanks again for this information.

I have another question regarding tax to pay when I sell.

I have never rented the property out and have never received any rental income from the house.

I know this sounds like a strange question but will I still be taxed as though I HAD received rental income (even though I have not!)?

I am asking because many years ago, my family had an apartment in Spain and when we sold it we were forced to pay tax on possible rental income - even though we never rented it out.  They said that we COULD have rented it out if we wanted, so now we had to pay the tax!   But we had NEVER rented it out.

In the end they charged us so much tax, we ended up with absolutely NOTHING.   

Corruption, I think!

I would appreciate your thoughts.

Thanks!