"Foreigner: How to Repatriate Currency from Investments in Morocco"

The repatriation guarantee allows foreigners to transfer their funds, including the profit realized after the payment of taxes, following the sale of real estate in Morocco. In the absence of the repatriation guarantee, repatriating funds in foreign currency will take place over a period of 4 years. The buyer can inherit the repatriation guarantee, provided that the seller benefits from it beforehand.

Morocco undoubtedly represents a promising destination for foreign investors in the real estate sector. The diversity of offerings, its geographical location, and political stability are among the factors that encourage considering Morocco. However, caution is always advised, and foreign investors should inquire about the various conditions and measures implemented by the country's authorities regarding the repatriation of funds in case of property resale.

Repatriation Guarantee

In the context of real estate transactions in Morocco, it is recommended to opt for the purchase of titled properties, meaning those registered with the National Agency of Land Conservation, Cadastre, and Cartography (ANCFCC). This is to safeguard against any disputes or fraud. Concerning the repatriation of funds after selling real estate in Morocco, knowledge of the measures facilitating this process is crucial, particularly the concept of the repatriation guarantee.

The repatriation guarantee applies exclusively to investments made in foreign currency and registered with the Exchange Office. This implies that the buyer must have paid for the real estate with foreign currency through a convertible account in dirhams. This account allows the buyer to deposit the necessary foreign currency for the property purchase, ensuring that the funds originate from a foreign currency.

The registration of the transaction with the Exchange Office enables the activation of the repatriation guarantee, which is essential for bringing back the invested funds in case of property sale.

It's important to note that fund transfers can occur directly between two foreign accounts if the transaction involves two foreigners without the funds passing through Morocco. However, fees, taxes, and transaction-related expenses must either be repatriated to Morocco in foreign currency or be deducted from a foreign currency account or a convertible dirham account. Transactions may also go through the notary's account responsible for the transaction-related registrations.

Validity of the Repatriation Guarantee

Being able to repatriate funds abroad after selling a property is a critical consideration when deciding to invest in Morocco. Understanding the factors allowing the repatriation guarantee is essential. As previously mentioned, to benefit from this guarantee, the funds must originate from foreign currency. This condition also applies when building a house after purchasing land in Morocco. To benefit from the repatriation guarantee, all funds used to pay the construction company must pass through a convertible dirham account for fund traceability and clarity with the Exchange Office.

It should be noted that for foreigners seeking financing from a Moroccan bank, intending to make a purchase in dirhams, if the financing does not exceed 70% of the property value, with the remaining 30% coming from a foreign currency investment, the repatriation guarantee may apply. A 100% dirham-based credit does not benefit from the repatriation guarantee. Credits granted for real estate investments by foreigners are handled through so-called "special" accounts, and repayments are made, among other methods, through convertible dirham or foreign currency accounts.

In the Absence of the Repatriation Guarantee

The Exchange Office is vigilant regarding operations, including real estate transactions, conducted by foreigners. In the absence of the repatriation guarantee, a foreigner must spread the repatriation of funds over four years, with only 25% allowed each year. Thus, it is only after a period of four years that the foreigner can access the full amount of their funds. It is crucial to note that funds must first be deposited into a convertible dirham account before being transferred to an overseas account.

Key Points to Remember:

In conclusion, the repatriation guarantee enables the transfer of funds obtained from the sale of Moroccan real estate abroad. To benefit from it, the original real estate investment must have been made in foreign currency, typically through a convertible dirham account, and the foreign currency investment must be registered with the Exchange Office. It is worth mentioning that the buyer can inherit the repatriation guarantee, provided that the seller benefits from it beforehand.

Additionally, only foreigners and non-residents in Morocco can repatriate funds from the sale of Moroccan real estate. In the absence of the repatriation guarantee, fund repatriation will occur over four years, with a cap of 25% per year.