Investing in real estate in Essaouira in Morocco when you are abroad

Essaouira, with its rich history, UNESCO World Heritage Medina and pleasant climate, attracts many foreign real estate investors. If you are considering investing in Essaouira, here is a guide to help you understand the market and the steps to follow.

1. Why invest in Essaouira?

Pleasant climate: Located on the Atlantic coast, Essaouira enjoys a mild climate all year round.

Historical Heritage: Its medina, fortifications and harbour offer an incomparable cultural richness.

Tourism potential: A popular destination with tourists, it offers attractive rental opportunities.

2. Purchase formalities for a foreigner

Contract of sale: It must be written in Arabic and French (or in another language that the buyer understands) and signed before a notary in Morocco.

Record-keeping: Usually includes a copy of passport, residence certificate, ID photos, etc.

Transfer of funds: Funds must be transferred from a foreign account to a foreign currency account in Morocco. This is necessary for the subsequent repatriation of funds in the event of resale.

3. Taxation

Housing Tax: Payable annually, based on the rental value of the property.

Income Tax: If the property is rented out, rental income is taxed.

Capital gains: If the property is sold at a higher price than the purchase price, a capital gains tax is payable.

4. Funding

Foreigners may obtain financing from Moroccan banks. However, conditions may differ from those offered to residents.

5. Considerations

Choice of location: The medina, for example, may be attractive for its authenticity, but it can also pose challenges in terms of renovation and access.

Legal status of the property: Ensure that the property is not subject to litigation and that ownership is clearly established.

Renovation works: Many properties in Essaouira are old and may need renovation. It is essential to get accurate quotes before buying.

6. Practical advice

Use a lawyer: It is strongly recommended that you use a local lawyer to guide you through the process.

Don't rush: Take the time to study the market, visit several properties and negotiate the price.

Cultural integration: Respect local customs and traditions. This will facilitate your relations with neighbours and authorities.

In conclusion, investing in Essaouira can be a rewarding experience both culturally and financially. However, as with any real estate investment abroad, it is essential to be well informed and prepared.

Essaouira, with its rich history, UNESCO World Heritage Medina and pleasant climate, attracts many foreign real estate investors. If you are considering investing in Essaouira, here is a guide to help you understand the market and the steps to follow.