Morocco has Attractive Legal and Financial Systems
Overseas investors who want to buy abroad without breaking the bank have been advised to purchase a home in Morocco.
Matthew Peters, a Property expert has stated in the Daily Reckoning that the dual tax treaty between Morocco and the UK, land registry reforms and infrastructure improvements underline Morocco’s firm intent to attract more overseas property purchasers.
Fitch Ratings, ratings agency has said that Morocco offers “Low foreign investment risk”. The prospective investors would be interested to hear that in 2006 the country received some 7 billion USD in foreign direct investment and this year’s target is for 12 billion USD. The country’s legal and financial frameworks are similar to France or Spain where property purchase is taken care of by a Notary. Many investors feel reassured by a European style system they can easily identify with.
Mr. Peters added that capital gains tax is 20 percent on properties sold within five years of purchase. However, the good news is that this decreases to ten per cent within ten years and zero percent from then on and there is no tax on rental income for the first five years and no inheritance tax if a property is left to family members.
Property values have been climbing in many areas during the last few years, making it an “important destination” for overseas property buyers. Growth figures reveal that Morocco is already beginning to see the positive impact of recent initiatives by the government in the infrastructure, tourism and commercial environments, all making Morocco the highly exciting investment arena it is today.
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