Easy Tips for Financing a Property Investment in Morocco

Morocco has become a hot spot for international investors looking for profit in the real estate sector. The rush has inspired international banks and Moroccan authorities to make financing a property investment in Morocco easier and feasible. You will need the services of a qualified notary to help you in detailed planning but the following tips cover the basics:

Help from banks
Banks in Morocco and several European countries offer loans and mortgages to international investors wanting to buy property in Morocco. The rules differ but overall, banks are keen on offering financial options to investors. Loans can be obtained both on business worth and net salary.

Borrowing limit
An international investor financing a property investment in Morocco can borrow up to 70% of the property price depending upon his business worth. He has the flexibility to pay in Euros, American Dollars or the Pound Sterling. But investors need to open a bank account first in Morocco itself to help with currency changes. You can then buy property with Moroccan dirhams.

Documents needed for financing a property in Morocco
Your notary will be able to help you collect all the relevant documents for financing property. He will also tell you what papers to collect so you can add value to your case when approaching a bank for a loan. Essentially, you will require the following documents:

1 – As a salaried person, required documents include:

  • Your bank statement of the last six months
  • Your pay slips of the last three months
  • A letter from your employer certifying you as a genuine employee of the company

2 – As a business owner, required documents include:

  • Certificate of incorporation of your company
  • The tax statements of the last two years
  • Bank statements of the last six months
  • Company bylaws and statutes or other relevant documents proving the ownership of the company

Check with the developer
If you are investing in property that is under construction like a resort then your developer may help you with financing the property in Morocco. Developers tie-up with financial institutions to arrange special interest rates, incentives, freebies etc for investors seeking mortgages.

Banks to approach in Morocco
In case you plan to take a loan from a bank in Morocco itself then you must check with the Moroccan Association of Commerce Banks. Banks that are part of this association include Economic & Investment Bank, Central Co-operative Bank, Bulbank, Biochim, ING Bank, Encouragement Bank, Eurobank, First Investment Bank, Societe Generale, Demirbank, Expressbank, Roseximbank, United Moroccan Bank, Union Bank, Banks DSK, Procredit Bank and Tokuda Bank Plc.

Loan amount
When you approach a financial institution for financing a property investment in Morocco, keep in mind that the total cost amount that you will eventually pay will be at least 10-30% more than the value of the property. The additional money is for registration, notary services, documentation and translation services etc.

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