Repatriating Funds from Moroccan Real Estate: A Foreign Buyer Guide

Foreign buyers should plan the banking route for a Moroccan property purchase before transferring a deposit. The Office des Changes framework and the evidence retained by the buyer, bank, and notary can affect the ability to transfer sale proceeds abroad later. This guide summarises the legacy source, but current requirements must be confirmed with a Moroccan bank, notary, tax adviser, and the Office des Changes for the buyer's residency status and transaction.

Understanding the Office des Changes and Its Role

The Office des Changes is Morocco’s authority responsible for regulating foreign exchange transactions, ensuring economic stability, and controlling capital outflows. For foreigners investing in real estate, compliance with its regulations is essential to facilitate both the initial investment and the funds repatriation guarantee upon selling the property. The Office des Changes oversees:

• Fund transfers for property purchases, ensuring investments comply with Moroccan law.
• Repatriation of proceeds from property sales, subject to specific conditions.
• Funds repatriation guarantee, a mechanism allowing non-residents to repatriate funds freely if certain criteria are met.

Foreigners, whether residents or non-residents, and Moroccans residing abroad (MREs) benefit from specific flexibilities under the Instruction Générale des Opérations de Change (IGOC), updated in 2024, which provides a framework for convertibility and repatriation.

Steps for Transferring Funds to Purchase Real Estate

To invest in Moroccan real estate, foreigners must follow these steps to transfer funds legally:

1. Open a Convertible Dirham Account:

• Foreigners must open a compte en dirhams convertibles or a compte en devises (foreign currency account) with a Moroccan bank. This account facilitates transactions in foreign currencies, for example euros or dollars, and their conversion to dirhams for property purchases.
• Required documents typically include a passport, proof of address, and, for some banks, a certificate of non-residency if applicable.

1. Transfer Funds in Foreign Currency:

• Send purchase funds from abroad through the account and banking route agreed with the Moroccan bank and notary.
• Retain the transfer order, currency-conversion evidence, beneficiary details, bank credit advice, and source-of-funds documents.
• Ask the bank and notary which declaration or registration evidence is required, including whether a Formule T2 applies to the transaction.
• The legacy source cites financing of up to 70% of the property value with 30% contributed from abroad. This is lender- and borrower-specific rather than a universal entitlement, so obtain current written terms and exchange-control advice.

1. Register the Investment:

• The investment must be registered with the Office des Changes, typically through the bank handling the Formule T2. This step is crucial to document the foreign currency origin of the funds, ensuring compliance for the funds repatriation guarantee.

Funds Repatriation Guarantee: Key to Repatriation

The funds repatriation guarantee enables non-resident foreigners and MREs to repatriate the full proceeds from the sale of a Moroccan property without restrictions, if they meet the following conditions:

1. Invest in Foreign Currency: The buyer must use funds transferred from abroad in a foreign currency to purchase the property, rather than dirhams sourced locally.
2. Register with the Office des Changes: The buyer must register the investment with the Office des Changes at the time of purchase, typically by submitting the Formule T2.

• Non-Resident Status: Only non-residents (foreigners or MREs) qualify for this guarantee. Residents, including dual nationals considered Moroccan under exchange regulations, are subject to stricter controls.

If these conditions are met, the proceeds from the property sale, initial investment, loan repayments, and any capital gains can be transferred abroad after settling applicable taxes, such as capital gains tax.

Repatriation Without the Funds Repatriation Guarantee

If the funds repatriation guarantee does not apply, for example because the buyer purchased the property entirely in dirhams or failed to register the investment, repatriation may remain possible under other restrictions:

The seller must place the proceeds from the sale into a compte convertible à terme (term convertible account).

The legacy source describes a term-convertible-account route under which 25% could be transferred each year and full repatriation took four years. Confirm whether this treatment remains current and applies to the seller before relying on it.

The seller can transfer the first 25% immediately after crediting the account. They can access each subsequent 25% tranche annually on the anniversary of the account’s initial funding.

This restriction ensures controlled capital outflows, protecting Morocco’s foreign exchange reserves.

Required Documents for Repatriation

To initiate repatriation after selling a property, foreigners must provide the following to their bank, which coordinates with the Office des Changes:

• Proof of Sale: A copy of the notarized sale deed (acte de vente) and the original purchase deed.
• Tax Clearance: Evidence of payment of all applicable taxes, such as capital gains tax.
• Investment Proof: Documentation of the original investment, including the Formule T2 and bank records showing the foreign currency transfer.
• Bank Account Details: Details of the convertible dirham or foreign currency account where sale proceeds are deposited.
• Identity and Residency Status: Passport and, if applicable, proof of non-residency.

For cases without the funds repatriation guarantee, additional documentation may be required to establish the term convertible account.

Funds Repatriation Guarantee; Key Considerations and Tips

1. Work with Professionals:

• Engage a reputable Moroccan notary and a bank familiar with foreign exchange regulations to ensure compliance with the funds repatriation guarantee process.
• Consider consulting a real estate agency or legal expert specializing in foreign investments, particularly in cities like Marrakesh, where foreign buyers are common.

1. Anticipate Delays:

• Authorization processes with the Office des Changes for repatriation can take weeks. Start preparations early to avoid delays.

1. Tax Implications:

• Double Taxation Agreements: Morocco maintains double taxation agreements with many countries, including France. Retain records of all transactions for tax authorities in both countries and obtain advice on how treaty relief applies. Transfer Requirements in France: The legacy source cites reporting thresholds of €50,000 and €10,000. Confirm whether those figures, bank checks, tax reporting, and customs rules are current with a qualified French adviser before transferring sale proceeds.

1. Currency Conversion Costs:

• Be aware of bank fees for currency conversion and international transfers. Compare rates across Moroccan banks to minimize costs during repatriation.

1. Special Cases:

• Since 2015, non-resident foreigners or MREs inheriting or selling inherited property can repatriate funds in one transaction. If the original owner was an MRE and they prove their residency status.
• For people purchasing properties before August 1999 with dirhams, up to 5,000,000 MAD, they can repatriate them immediately.

Conclusion

Foreign buyers should document the original currency transfer, preserve banking and notarial records, register the investment as currently required, settle taxes, and plan the exit early. Repatriation treatment depends on the facts and rules in force at the time, so historic percentages and timelines should not be treated as current advice.

Take the Next Step to Own Your Moroccan Property

Explore selected properties or contact Orchid Island to discuss the purchase process. Obtain current banking, legal, foreign-exchange, and tax advice before transferring funds.