Oasis Morocco - Q&A
A few things you need to know about buying property in Morocco.
Will I need a solicitor?
It’s essential to engage a reputable, experienced local solicitor. We have established connections with a London-based Moroccan solicitor who can advise on all aspects of property purchase.
Can I get a mortgage in Morocco?
Yes, mortgages are available for 70% of the property value.
Will I need a Moroccan bank account?
Yes, we can do this for you. We will supply all the relevant forms and translations. We advise that all currency transactions are carried out through a broker such as Moneycorp.
How do I secure a property?
An initial holding deposit of £2000 is all that is needed to secure a property for 28 days. This gives you time to visit the project or buy ‘site unseen’.
What is the payment structure for the Oasis Beach and Golf Resort?
20% of the purchase price is payable on exchange of contracts (a deposit of £2,000 is deducted from this). A further 10% is then required on start of construction followed by a further 10% on completion of the concrete structure. The final 60% is paid either in cash or via a mortgage.
Will I be able to rent out my property?
Properties here should provide lucrative year-round rental potential because of the climate and golf facilities. An added bonus is that owners are income tax-exempt for the first 5 years.
What ongoing costs should I expect?
Running costs are set to be around £120-£160 per month, including utility, maintenance and management charges.
What is the Capital Gains Tax situation?
Capital Gains Tax (TPI) is 20% of the profit, with a minimum of 3% of the sale price. There is a double taxation treaty between the UK and Morocco to ensure that this is not paid in both countries. Properties sold within 8 years or more of ownership are fully exempt from TPI. Properties sold after more than 5 years ownership but less than 10 years are subject to TPI of 10% of any capital gain over 1 million MAD (about £62,000).
What if I want to re-sell before completion?
You can sell on to a 3rd party (once 40% of the contract value has been paid) via a transfer contract drawn up by your solicitor.
What is the local currency?
Local currency is the dirham (MAD).
Where can I find more information on Morocco?
Moroccan Embassy, 49 Queens Gate Gardens,
London SW7 5NE Tel. 020 7581 5001
www.morocco.embassyhomepage.com