Morocco real estate credit: 30% rule for expats explained

For expats who wish to invest in real estate in Morocco, resorting to a local bank loan is possible. The Office of Exchange authorizes Moroccan banks to grant them loans in dirhams to finance the acquisition or construction of a residence in the Kingdom. This facility, provided for in articles 793 to 796 of the general instruction on exchange operations, remains however highly regulated.

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The first condition concerns personal contribution. The non-resident beneficiary must finance at least 30% of the real estate price with foreign currency funds. This contribution can be made by currency transfer or by debit from a foreign account in convertible dirhams opened in their name. In other words, an expat cannot rely solely on a Moroccan bank loan to finance their entire project.

A contribution from abroad and regulated repayments

This 30% rule is central. It means that the buyer must be able to justify a significant portion of the financing from abroad. The costs related to the transaction must also be covered by foreign currency or by an account in convertible dirhams. This notably concerns notary fees, registration rights, land registry fees and other charges related to the acquisition or construction.

Loan repayment follows the same logic. Capital, interest and bank commissions must be paid by currency transfer or by debit from an account in convertible dirhams. For expats, this therefore requires organizing financial flows from the start, so that payments comply with the Office of Exchange requirements.

The Moroccan bank granting the loan must also obtain a guarantee. It may require a first-rank mortgage on the financed real estate, or a guarantee issued by a foreign bank. The objective is to secure the loan granted to the non-resident.

Banks also have a reporting obligation. Upon granting the loan, they must transmit to the Office of Exchange a report accompanied by the loan contract and supporting documents relating to the initial contribution, in particular the bank currency purchase form or the certificate of debit from the convertible dirham account.

Resale of the property: what the expat can transfer abroad

The regulations also provide for the case where the real estate is resold. If an expat resells a residence financed by means of a dirham loan, the bank can transfer the net proceeds of the sale abroad, provided it presents a copy of the notarial deed and supporting documents proving payment of taxes and duties owed to Morocco.

The transferable amount first covers the initial foreign currency contribution. It also includes principal repayments already made by currency transfer or by debit from the convertible dirham account. To this can be added any capital gain realized upon the sale of the real estate.

This point is important for expats who buy in Morocco while maintaining their main residence abroad. Invested funds can be recovered and transferred, but only if the origin of the funds and repayments have been properly documented.

The Office of Exchange finally regulates situations where financing is provided by a foreign bank. In this case, Moroccan banks can issue guarantees in favor of these institutions, up to 100% of the value of the property to be acquired. The Moroccan bank must then require a first-rank mortgage and ensure full repatriation of the purchase price, including ancillary costs.

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For expats, the message is clear: buying or building in Morocco with a loan remains possible, but the transaction must be prepared with rigor. The contribution, repayments, fees and future resale must be traceable. Otherwise, the transfer of funds abroad can become more complicated when reselling the property.