GENERAL INFORMATION
For non-resident buyers, foreign currency investments will be declared to the foreign exchange control office which guarantees that the proceeds from the sale can be transferred to their country of origin if the property is sold on.
A convertible dirham bank account must be opened at a local bank (French banks are often shareholders in Moroccan banks) where funds from abroad can be deposited. As its name suggests, this system entitles foreign investors to take advantage of the convertibility scheme (Dahir of 15/09/92); they can buy property, repatriate funds (sale, capital gains on sales, rent. and, receive funds from abroad (retirement pensions, salaries, miscellaneous funds, etc.).
There is no estate duty for Moroccan nationals.
Non-residents come under the provisions of tax agreements between Morocco and a large number of countries to avoid double taxation.
Retired foreign nationals living in Morocco can transfer their pension to a non-convertible dirham account: they are then entitled to a reduction of 80% on the tax on their retirement pension.
It is also possible for them to transfer only a part of their pension, to cover their living expenses in Morocco; the tax rate is then fairly low, at around 5 to 15%.
BUYING OFF PLAN
The “VAL ATLAS" project villas can be sold under the V.E.F.A (sale of property for future completion) system.
THE VEFA CONTRACT :
This is a contract between a buyer and seller for the purchase of a property.
The seller undertakes to build a property within a determined time and the purchaser commits to paying installments of the price as the work proceeds.
The VEFA system consists of a preliminary contract and the final contract:
THE PRELIMINARY CONTRACT:
This contract is mandatory and is signed when the foundations are completed. It must contain certain information regarding the property, in particular the completion time, prices and methods of payment and refund guarantee.
The purchaser is provided with a set of specifications drawn up and signed by the seller, containing all the necessary information on the property and its technical characteristics, the nature and quality of the materials and equipment items and construction and completion times.
THE FINAL CONTRACT :
Ownership of the property is transferred after the selling price has been paid in full and the housing permit (“permis d'habiter”) obtained.
METHOD OF FINANCING THE PURCHASE OF THE PROPERTY :
The buyer makes payments as the construction of the purchased property progresses, as follows :
• 10% at the reservation ;
• 20% on completion of the foundations of the villa and the bottom slab of the ground floor
;
• 20% on completion of the structure and upper floor of the 1st floor ;
• 15% on completion of the outside and inside walls, covered in rough plaster ;
• 15% on boxing up and laying of floor coverings in the body of the villa;
• 15% on completion of the works on the property;
• 5% at the signature of the final bill of sale.
A receipt of payment shall be issued for each installment.
VEFA WARRANTIES :
Warranty against hidden defects: the client is guaranteed against hidden defects for a period of one year after acceptance of the property.
Ten-year warranty: for ten years following the final reception of the keys, the purchaser is covered by a 10-year warranty on the structure.
DUTIES AND TAXES PAYABLE BY THE PURCHASER
• Registration fee : 2,5%
• Notary Tax : 0,5%
• Land registry: 1% + 150 dhs for the certificate of ownership
• Notary fees: 1% with a minimum of 2,500 dhs + 7% VAT
• Updating of constructions, if necessary, at the land registry: 0.5% + 75 dhs
• Miscellaneous costs: around 2,000 dhs (stamps, etc.)
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