Mortgage calculator to invest in real estate in Morocco

Tax advantages according to your profile

1. Benefits for Moroccan residents (in Morocco)

Moroccan residents benefit from several advantages similar to those of foreigners:

• Deduction on rental income : A standard deduction of 40% also applies to residents on rental income.
• Exemption from business tax (TP) : Available for everyone, residents or foreigners, for newly acquired or built properties, for 5 years.
• Exemption on real estate capital gain :
  • Moroccan residents can benefit from an exemption from capital gains tax if the property has been their main residence for more than 6 years.
  • Exemption is also granted for sales whose total amount does not exceed 1 million dirhams.
• No reporting obligation in case of repatriation or receipt of funds from abroad : Moroccan residents do not have the same obligations in terms of currency repatriation since they are not subject to exchange control rules. They have the freedom to transfer or receive currencies abroad without the obligation to declare these transfers to the Office des Changes, except in exceptional cases (for example, if the amounts exceed specific thresholds).

2. Benefits for Moroccans Living Abroad (MRE)

MREs benefit from specific treatment and additional advantages:

• Financing facilities :
  • Moroccan banks offer products specific to MREs, with advantageous rates and simplified processes for real estate mortgages.
  • To have access to these specific rates, the Real estate mortgage calculator in Morocco allow you to see more clearly
• Repatriation of rental income :
  • Unlike resident Moroccans, MREs, who generate rental income in Morocco, can repatriate them to their country of residence, subject to a declaration of foreign currency investments at the time of purchase.
• Purchase conditions similar to foreigners :
  • Like foreigners, MREs must ensure that funds are transferred via declared banking channels in order to be able to repatriate the proceeds of a resale.

3. Benefits for foreign investors

Foreigners benefit from all the fiscal and legal advantages mentioned above, but with certain specificities:

• Access to free zones : Foreign investors can benefit from specific exemptions in free or strategic zones. Free zones are particular geographical areas in Morocco where fiscal and customs rules are more advantageous to encourage investment, especially on the part of foreign investors. This means that businesses that set up in these free zones can benefit from special tax advantages, such as the reduction or exemption from taxes, duties or customs fees.
• Currency protection : Foreigners are guaranteed to be able to repatriate their income and sales proceeds, provided they respect exchange control rules.
• Freedom of acquisition : Foreigners can acquire real estate with full ownership, with the exception of agricultural land, which requires specific conditions.

4.Limitations for Foreign Investors

Acquisition of Agricultural Land
Foreigners face restrictions regarding the acquisition of agricultural land. These restrictions include limitations on land size, the requirement for prior authorization from competent authorities (e.g., Ministry of Finance, Ministry of Agriculture), and a preference for local investors in the agricultural sector.
Foreigners can purchase agricultural land only under certain conditions, such as for agricultural or agro-industrial projects.

Restrictions on Purchasing Certain Areas
While foreigners can acquire freehold properties in most parts of Morocco, certain strategic areas may be subject to restrictions. For example, zones near borders, military sites, or strategic installations may be off-limits for foreign ownership due to national security reasons.
Agricultural land in rural areas or regions near sensitive locations may also be harder for foreign investors to access.

Foreign Exchange Control Obligations
Foreign investors must comply with foreign exchange control regulations established by the Office des Changes. These rules primarily concern the repatriation of invested funds or profits from the sale of real estate. For instance, funds used to purchase property must be transferred through official banking channels.
If a foreigner wishes to repatriate funds related to the sale of property in Morocco, they must follow declaration procedures and obtain necessary authorizations.
The amount of funds transferred abroad may be subject to limits, and specific administrative steps may be required for significant sums.

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5. Real Estate mortgages for Non-Residents in Morocco

Special Conditions for Foreigners
The terms for obtaining a mortgage in Morocco differ for non-residents compared to Moroccan residents. Banks often require additional guarantees, such as a high initial deposit, typically ranging between 30% and 50% of the property's value. Foreigners must also provide proof of stable income from abroad and, in some cases, commit to domiciling part of their income in Morocco. These specific conditions aim to secure mortgages and reduce risks for banks offering mortgages in Morocco.

Banks Serving Non-Residents
Many Moroccan banks offer tailored solutions for foreigners or Moroccans living abroad (MRE) seeking real estate financing. Key institutions include:

• Attijariwafa Bank: Offers morgages in foreign currencies or dirhams.
• BMCE Bank (Bank of Africa): Known for financing products adapted to the needs of MREs and expatriates.
• CIH Bank
• Banque Populaire: Supports MREs with simplified offers and competitive rates for Moroccan real estate mortages.

Currencies Used
Non-residents can choose between mortgages in dirhams or foreign currencies. Mortgages in currencies like the euro or dollar are more suitable for those earning in these currencies, as they minimize exchange rate risks. Mortgages in dirhams, on the other hand, are particularly suited for investors planning an extended stay in Morocco. In both cases, using our mortgage simulator for Morocco helps compare options and identify the best terms.

Mortgage Rates and Simulations in Morocco
Mortgage rates in Morocco vary depending on the mortgage term and the borrower's profile. MREs and foreigners can access advantageous rates based on their guarantees and initial deposits. To better understand costs, it is recommended to use our Moroccan mortgage simulator. This tool provides a clear estimate of monthly payments and the total financing cost.

Why Simulate a Mortgage in Morocco?‍

A mortgage simulator is an essential tool for effectively preparing your financing application. Here are the main reasons to use it:

• Evaluate Borrowing Capacity: Calculates the maximum amount you can borrow based on your income, expenses, and personal situation.
• Anticipate Monthly Payments: Shows repayment amounts for different mortgage terms.
• Optimize Your Project: Adjust parameters such as down payment or mortgage duration to improve your chances of meeting bank conditions.
• Compare Options: Estimate costs based on different Moroccan mortgage rates.

Necessary Criteria for Mortgage Simulations in Morocco‍

For a complete simulation, the tool requires detailed information about your project and financial situation. Here are the required inputs:

1. Total Project Cost
   The simulator calculates the total cost of your real estate project, including:

• Property Cost: The purchase price of the property.
• Renovation Costs: If renovations are planned, their amount is added.
• Notary Fees: Approximately 6-8% of the property's price in Morocco.
• Agency Fees: Typically 2.5-5% if you work with a real estate agency.

Moroccan real estate mortgage may cover some or all of these elements, depending on the bank and financing terms.

2. Your Down Payment
   You’ll need to indicate the amount of your personal contribution.
3. Mortgage Term and Interest Rate
   With the simulator, you can input your preferred mortgage term and interest rate. You can also modify these parameters to see their impact on monthly payments and overall mortgage cost.
   The simulator uses this data to calculate your total monthly income, which is essential for evaluating borrowing capacity.

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Results Provided by the Mortgage Simulator

1. Required Down Payment
   The simulator also indicates the minimum deposit needed, based on the total project cost and Moroccan banks' requirements. A higher deposit can lower monthly payments and improve financing approval chances.
2. Mortgage Term and Monthly Payments
   You can choose different mortgage terms (10, 15, 20, or 25 years) and see how this affects monthly payments and the total loan cost, including interest. For instance, a 15-year mortgage may have higher monthly payments but a lower total cost compared to a 25-year loan.

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Practical Example: Moroccan Mortgage Simulation

Context

• Project cost: $187,600
• Personal contribution: $37,600
• Monthly income: $3,000
• Monthly expenses: $1,500
• Loan duration: 20 years

Results Obtained

• Monthly payment: $681 per month over 20 years

Advantages of Simulating a Mortgage in Morocco

• Clarity and Precision: Provides a comprehensive view of your financial situation.
• Anticipation: Prepares your financing file by understanding the terms for obtaining a Moroccan mortgage.
• Customization: Adjust parameters according to your needs and goals.
• Cost Optimization: Compare options and identify the best Moroccan mortgage rates.

Whether you are a local buyer or an MRE, our tool allows you to simulate a Moroccan mortgage online to better plan your project.

Conclusion‍

Our simulator is designed to meet the specific needs of the Moroccan market, whether you are a local resident or an MRE. By simulating a mortgage in Morocco, you can evaluate your borrowing capacity, understand your monthly payments, and adapt your project to meet the conditions for obtaining a Moroccan mortgage. With this tool, you’ll be better prepared to have productive discussions with your bank and realize your real estate dreams.