Jardin de Fleur - Buying FAQs

Frequently asked questions about buying in Jardin de Fleur.

Finance

Is it possible to get a mortgage as a non-resident in Morocco?

Yes, Moroccan banks sometimes lend up to 100% but 60% of the property value is standard.

Are you free to choose your own bank?

Yes, but we have contact with a few major banks and have negotiated favourable terms for our clients.

What is the local currency?

The currency of Morocco is the dirham (DRH).

Do I need a bank account in Morocco?

Yes, but we can arrange that for you with the local branches of the major Moroccan banks.

How do I transfer money to Morocco?

You can use your own bank or a money-broker.

Property

How do I reserve a property?

We will reserve a property for a maximum period of 14 days. To do this you have to pay an initial holding deposit of €3.000 or £2,000. This gives you the time to either visit Mediterrania Saïda or to buy site unseen. If you change your mind, within the 14 day period, the holding deposit is fully refundable.

What is the payment structure?

On exchange of contracts, 20% of the purchase price is payable (less the initial holding deposit). A second payment of 20% is due when building works commence i.e. when ground work and foundations are started (this is anticipated to be early to mid 2007). On completion, the outstanding balance of 60% is due either by mortgage or cash to complete your purchase.

What are the purchasing costs?

You should budget for about 5 to 6% over the purchase price to cover:

• Stamp duty : 2.5%
• Legal fees : 1.1%
• Notary fees : 0.5%
• Land registry : 1.5 to 2%
• Dispatch fees : about 500 DRh or €30
• Misc (certificates) : about 500 DRh or €30

Do I need a solicitor?

Normally you can use the local notary but because of the distance and language problems it might be better to use a London-based Moroccan solicitor who can advise you on buying property in Morocco.

Rental and ongoing costs

Is it possible to rent the property out?

Yes, of course, and because of the aim to increase tourism, owners are tax-exempt for the first five years.

Are there ongoing costs besides water, electricity and local property tax?

We estimate these costs will be around €100 (£70) per month for utility, maintenance and management charges.

Taxes

What do I need to know about taxes in Morocco?

There is a double tax treaty between the UK and Morocco to ensure that Capital Gains Tax (TPI) is not paid in both countries. In Morocco, TPI is 20% of the profit with a minimum of 3% of the sale price. If you sell your property after ten years of ownership, you are fully exempt from TPI. Owners who sell their property after five years but within ten years are subject to TPI of 10% of any capital gain over 1 million DRh (€65,000). There are no death duties as long as the property stays within the family (however, it is advisable to seek professional tax advice as individual circumstances and company purchases of property can alter your tax liabilities).

What if I want to sell my property before completion?

You can sell your property to a third party once the initial 20% instalment has been paid. A 1.5% administration fee plus VAT will be charged for onward sales. 5% plus VAT will be charged for direct introductions from PLM. Selling on your investment is very easy via a transfer contract organised by your solicitor.

 

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