Selling property in Morocco

The property market in Morocco whether it’s for sale or purchase is extremely hot. Forbes magazine has even listed it as one of the top 10 destinations where investors can buy and sell property. The government has also unveiled ambitious plans for Tourism and Healthcare sectors and this has given a high impetus to the construction as well as property sector in the country.

Fair Deal
To ensure that the speculators don’t make a killing in this market and there are genuine buyers and sellers, there are certain regulations that govern the sale of properties in Morocco. Investors should look for professional agents and notaries who can help them in the sale of the properties. Since the industry is in the nascent stage, the temptations for the investors are very high. However, the investors aren’t allowed to simply buy the land and then sell it without any value addition. The land has to be developed and a house or a tourist complex or some other form of development must be made if the property needs to be sold. The investor who may be a foreigner is also required to stay in the house prior to its sale. The laws for selling the property are quite strict. However, when investors partner with locals for the sale of land, the difficulties in selling the land can be easily overcome.

Types of taxes levied on real estate
Since the tax regime is extremely lax, investors look forward to buying as well as selling the properties in Morocco. The Capital Gains tax is 20% if the property is sold within the first five years, however there is no Capital Gains tax if the property is sold after 10 years. The investors that have a long investment horizon can benefit immensely from this factor.

Further, there is no Property tax on real estate if the property is sold within the first five years after acquisition. The Government of Morocco doesn’t charge any Inheritance tax either. However, it’s strongly advised that the investors make a Will for the property and register the same in Morocco. This helps the legal heirs in claiming the property after the death of the investor. With greater tourist influx and a push from the government, selling property in Morocco will bring loads of benefits to the investor.

Morocco is now being connected with the rest of the Europe through budget airlines and it is only a few hours by flight from major European countries. Morocco has a rich history and exotic culture which is also attracting the tourists, especially from the higher end. The government estimates that more than 10 million tourists shall visit the country in the year 2010. For this reason, investors are especially interested in the areas around Tangiers and Marrakech. Those that want to ensure that they get the best deal should enter the market quickly as the prices are down. If invested wisely, it can fetch great returns for the investors.

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