15% average appreciation on Property Prices

The Kings plans to increase tourism from 2.2 to 10 million by 2010, thus creating high demand for rental properties. Tourism has grown by 18% in the past year alone! This is the known as Vision 2010. Typically 50 - 70% less than the Costa Del Sol , therefore there is still plenty of scope for good capital appreciation.

Morocco has strong links to the UK and US and is striving for EU membership.

'Open Skies' Policy will enable cheap European airlines to operate to Morocco and with an average flight time of approximately 3 hours with transfers of no more than one hour to your property its ideal.

Mediterranean Climate with 320 days of sunshine per year with an average Summer Temperature is 35C and 22C in Winter

Low Cost of Living

Rich Diverse and exotic Culture where English, French, Spanish widely spoken along with Arabic

Safe investment with notary supervised property registration similar to France & Spain . In addition, many of our Resorts are Government backed and also have the backing of major European or Moroccan banks.

Frequently Asked Questions

What are the purchasing costs?

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

Stamp Duty: 2.5%

Legal Fees: 1.1%

Notary Fees: 0.5%

Land Registry: 1.5 - 2%

Do I need a solicitor?

Normally you can use the local notary but because of the distance and language problems it would be advisable to use a London based Moroccan solicitor who assist you in your Moroccan property purchase.

Is it possible to rent the property out?

Absolutely, and because of the aim to increase tourism, owners are tax-exempt for the first 5 years. Please see tax section below for more information

Is the title of the property leasehold or freehold?

All properties are freehold.

What sort of capital growth has been experienced in the area and what are the prospects?

As shown in the Times, The Telegraph and Homes Overseas magazines "property prices have doubled in the last 2 years and that it is anticipated that prices will double again over the next 2 to 3 years. However, even conservative estimates have shown a general rise in property of about 20%, with prices expected to rise at a similar rate over the next 3 years.

What rental yields can be expected?

Morocco already has an established tourist base and rental occupancy during the high season has been measured at 85%, which makes it easy to cover mortgage payments. However with the implementation of Vision 2010 demand is set to grow even more.

What rental tax is payable?

The first 3 years of rental income is tax free, afterwich, the investor must pay tax on 60% of their generated income at levels of between 22-44%.

What Capital Gains Tax is payable of selling my property?

Capital Gains Tax, which is based on sales price less the purchase price, is 0% if the property has been in ownership for 10 years or over. Six to ten years is 10% and five or under is charged at 20%. Please also not that a double Tax Treaty has been agreed between the UK and Morocco and this ensures that you are not liable for CGT in both Countries.

What Inheritance Tax is payable?