How to invest in Morocco?

Morocco is a key destination for French expatriates. The reasons are multiple: the weather is nice there, France remains close and the cost of living is rather low. Do you want to pack your bags in this Maghreb country? However, you do not know how to go about it in relation to the administrative procedures? Here is everything there is to know about the entry formalities in Morocco if you want to invest in Morocco!

If your stay is less than three months, a visa is not required. However, you will need to show a valid passport and not an identity card. If you cross the possible stay bar, you incur a fine and a stay ban. However, be aware that you can apply for a three-month extension once in Morocco.

If you want to live in Morocco and put your suitcases down for three months or more, registration is necessary, as is a residence permit within fifteen days of your arrival on Moroccan soil. You must be able to show that you have a minimum monthly income or that you carry out a legal activity in the country. This card remains compulsory for many common procedures such as the creation of a bank account or in order to obtain a gray card. Regarding retirees, they will have to reveal proof of retirement pension.

The Moroccan residence permit lasts for one year. It can be renewed. It is necessary to apply for renewal at least two months before the card expires. A residence permit valid for ten years will be given to you after three years on Moroccan soil. However, this registration does not offer the possibility of obtaining a job in Morocco. Take into account that children under the age of sixteen do not need to be registered.

READ:  How to finance his professional retraining?

If you want to work on Moroccan soil with a view to investing in Morocco, registration is not enough. Indeed, you will need to have a work permit. You must be able to reveal an employment contract formalized by the Ministry of Employment. Once the three years have elapsed, the employer must renew the current contract. Foreigners carrying out a liberal profession (self-employed) will have to submit the request for authorization to the General Secretariat of the Government. For entrepreneurs, registration with the Moroccan commercial register is necessary.

If you wish to obtain more information on the specificities of entering the country, contact the Moroccan Embassy, located in Paris or take a look at the web platform of the country’s Ministry of the Interior.

In the country, rents change significantly depending on the area and the type of property concerned. Apartments and villas located in major Moroccan cities can be extremely expensive. Here is the list of the cities concerned: Rabat, Casablanca, Fez, Rabat, Agadir, Tangier or Marrakech. In the central districts, the prices are obviously even higher.

Among all these cities, Casablanca is the most expensive. It must be said that it is the economic capital of the country. In order to make significant savings, we strongly recommend that you turn to smaller cities that are further away from the population. Take into account that recent real estate projects can have an impact on rental rates. In any case, one thing is certain: rents will be much more affordable there than on the European continent.

READ:  Blogging challenge #2

Often, in the majority of Moroccan metropolitan cities, if you are looking for a quality apartment, count at least 2500 MAD. This can go up to 4500 in the central districts, which are much more secure. If you want to rent a flat, go looking for flatmates on social platforms, mainly Facebook, where there is no shortage of groups of expatriates in this Maghreb country.

In Morocco, prices are more accessible than in the West. So, if you want to enjoy an apartment, consider at least 250,000 Dh (Moroccan dirham). If you want to find something decent, know that the price is in the range of 300,000 to 400,000 Dh. The central districts are obviously more expensive. It is also possible to acquire land and build your own home. For this purpose, consider two million Dh for nearly 400 square meters.

On average, to buy a m2 in town in Morocco, count around 1285 euros. This price can drop to an amount of 853 euros and climb up to 2369 euros, depending on the period and the city. This price for a square meter in town is less expensive than that in France. Often, if you wish to acquire a m2 outside the city on Moroccan soil, count 655 euros. This price is an average. Thus, it can decrease up to 380 euros! Before investing in Morocco, be sure to find out.

There are different conditions for granting loans to residents. When you are a Moroccan resident, you will have every chance to have a mortgage if you determine an acquisition budget. Then, you must turn to the banking establishments to obtain as many details as possible in relation to the loan. Once this is done, make sure you have complied with all the terms and conditions of granting:

READ:  Reduce the cost of administrative management of a company with an HRIS

The assets disclosed must be fully titled: it therefore proves to be irrelevant to choose an asset being titrated, since the latter will not be accepted by the banking establishment concerned;

The personal contribution must be at least 30%;

The interest rate for a personal loan is within a range of 5.5% to 6.5%. Regarding that of a commercial loan, it can range from 7% to 10%.

If you wish to benefit from a mortgage that can offer the possibility of finalizing a purchase, it is necessary to respect all the terms and conditions for obtaining a loan. When you are a foreigner, it is therefore necessary to have a bank account that can be converted into dirhams, to make a personal contribution in foreign currency of 30% of the value of the property concerned and to have a guarantee that can cover the mortgage on Moroccan soil.

Thanks to your personal contribution, the borrower benefits from a retransfer guarantee during the sale of the property at a future date. When you get the loan, be aware that it is possible to repatriate the funds from the sale of the property to your country of origin or residence.

The cost of living in Morocco is 50% less expensive than in France. Same thing with real estate prices. Regarding public transport, fares are affordable. Count 0.46 euros for a metro ticket and 14.80 euros if you choose the monthly pass. If you travel by car, take into account that gasoline is also cheaper than in France.

If you want to move to Moroccan soil, know that it is possible to take out basic insurance with the Caisse des Français de l’Étranger. For the price, consider 250 to 300 euros per quarter.

READ:  What main criteria should be identified before investing in an SCPI?

To cover the needs of an individual, an employee must receive 6,000 MAD, which corresponds to 563 euros monthly. This includes costs related to health, transport, rent and basic needs. Now you know everything there is to know if you want to invest in Morocco!