Moroccan Expats Buy Morocco Property Pay Abroad Legally

Moroccan regulations authorize payment abroad for certain operations involving investments made in Morocco. This possibility notably concerns the sale of an investment held by a foreign person in favor of a Moroccan residing abroad.

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The expat can thus settle the seller directly outside Morocco, instead of transferring currency to the Kingdom to pay the price in dirhams. This rule can notably apply to the sale of real estate, securities or a stake in a Moroccan company.

However, it does not concern all purchases made in Morocco. Direct payment abroad is provided when the seller is a foreign national. A sale concluded between two Moroccan nationals does not automatically benefit from this scheme.

According to the Exchange Office, payments relating to the sale of foreign investments in Morocco can be made directly abroad when a foreign person sells their investment to another foreign person or to an expat.

Payment does not change the status of the property

However, resorting to payment abroad is not sufficient to give the new buyer complete transfer guarantee. The expat takes over the seller’s situation regarding the convertibility regime attached to the investment.

This point is decisive in case of subsequent resale. When the investment had initially been financed in foreign currency and benefits from the convertibility regime, its owner can, subject to required documentation, transfer abroad the proceeds of its sale as well as any capital gain.

Conversely, the mere fact that the expat paid the seller abroad does not automatically transform a non-convertible investment into a convertible investment. The buyer inherits the status existing at the time of the transaction.

Before purchasing, the expat must therefore verify how the investment had been financed by the seller and whether corresponding documentation is available. For real estate, the Exchange Office notably provides for the presentation of the deed of sale, deed of purchase and documentation of initial financing when a transfer of sale proceeds is requested.

The transaction must also be properly documented in the deeds concluded between the parties. Payment abroad, its amount and its terms must be justifiable, notably to establish the source of financing and preserve the rights attached to the investment.

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This possibility can simplify a transaction when both the seller and buyer have funds abroad. But it does not exempt the expat from verifying the status of the investment: paying outside Morocco is authorized in this specific case, without guaranteeing that the entire proceeds of a future resale can be transferred freely.