Moroccan Parents Explore Property Buying Loophole for Students Abroad

Even if the measure is not codified in the General Instruction of the Foreign Exchange Office, published in January 2019, it can nevertheless be granted on a case-by-case basis, in the form of a derogation subject to a few conditions, reports L’économiste. Among them, having a child enrolled abroad, the financial capacity and the tax situation of the person.

After examining these conditions, the Director General of the Foreign Exchange Office grants the final authorization, for the purchase of a property, within the authorized amount. However, this derogation is not automatic. It can therefore result in a refusal if the parent concerned does not meet the conditions.

This derogation requires a counterpart. Indeed, the parent signs a commitment to sell the said property as soon as their child(ren)’s studies are completed and to repatriate the proceeds of the sale.

However, the system has flaws at this level. This is due to the fact that some people decide to remain in their host country because they have found a job opportunity or they plan to stay for a permanent settlement, indicates the same source.

Thus, the Foreign Exchange Office has difficulty knowing the exact situation of real estate owned by Moroccans abroad. Moreover, its activity report, for the 2017 financial year, does not mention the real estate acquired abroad by derogation.