Securing your investment and repatriating your money freely is an absolute priority. In this context,, FOCH Real Estate has sought the expertise of Maître Leila Hamdoun, a notary in Marrakech, to present the retransfer guarantee in Morocco: the key to recovering your capital and exiting your capital gains with total peace of mind.
Maître, could you explain to us: what exactly is the retransfer guarantee?
The retransfer guarantee in Morocco is a fundamental mechanism. Indeed, it allows foreign investors and Moroccans Residing Abroad (MRE) to repatriate their funds in foreign currency. In fact, this system provides the necessary security to recover invested capital. It also enables the legal transfer of real estate capital gains following the sale of a property. For this to work, you must make the initial investment in foreign currency. Generally, this is done through a convertible bank account or a transfer to the notary’s account at the Caisse de Dépôt et de Gestion (CDG). Furthermore, the CDG is a Moroccan public institution that secures funds until the final signature. Finally, the notary personally ensures the registration of this investment with the Office des Changes during the acquisition or at the time of resale.
Of course, on the day of the sale deed signature, it will be necessary to settle the required taxes and fees to obtain the tax clearance and the building manager’s clearance. This regularization is indispensable to prove the payment of the real estate profit tax (TPI) and the housing tax. Moreover, it concerns the communal service tax and co-ownership charges. Once these obligations are met, the notary sends the retransfer request to the Office des Changes.
Since when has the retransfer guarantee existed in Morocco and which organization originated it?
The Office des Changes established this protection mechanism in the early 1990s. Specifically, this system was born as part of the liberalization of the Moroccan economy. Indeed, it offers total security to foreign capital. For more than 30 years, this regulation has allowed buyers to repatriate the money from their sale and export their capital gains in total legality. Consequently, it constitutes the foundation of trust for any real estate investment made in foreign currency in Morocco.
How to activate the retransfer guarantee in Morocco to repatriate the money from your sale?
First of all, you must ensure the traceability of your investment as soon as the funds are sent to activate this protection. In fact, two main options are available for channeling your foreign currency. You can use a bank account convertible into dirhams or make a direct transfer to the CDG. Subsequently, it is imperative to collect the supporting documents proving the arrival of the foreign currency. Therefore, your bank must provide you with the complete file including Form 2, the debit notice, and the credit notice. Furthermore, it adds the certificate stating that the funds were used for the purchase of real estate in Morocco. Finally, you provide all these documents to the notary in charge of the transaction to recover your capital with total peace of mind.
How to repatriate money from a sale in Morocco without proof of the origin of funds?
Fortunately, there is a legal solution to recover your invested capital and real estate capital gains, even without initial traceability. Indeed, the Office des Changes allows the seller to open a special account called a “convertible term account.” However, it is important to note that this process is longer than the classic procedure. As a result, the repatriation of funds in foreign currency will be spread over a period of four years, at a rate of 25% per year. Moreover, the transfer of the first installment occurs after a delay of one year from the deposit of the funds into this account.
When should the retransfer guarantee procedure be launched?
In practice, you can carry out the retransfer procedure with the Office des Changes during the acquisition or at the time of resale. Furthermore, only this official step allows for the definitive registration and activation of the retransfer guarantee in Morocco. Thus, you can launch the registration during the sale of your property if you prove the origin of the foreign currency. To do this, you present the essential supporting documents such as Form 2 and debit notices. Finally, be aware that in most cases, the notary takes care of finalizing the retransfer guarantee in Morocco during the resale to allow you to repatriate the money from your sale legally.
Can one obtain a bank loan in Morocco and keep the retransfer guarantee?
Indeed, it is perfectly possible to combine local bank financing with your investment protection. However, your personal contribution in foreign currency must represent at least 30% of the total value of the real estate. Consequently, the bank loan in Morocco must not exceed 70% of the property’s value. It is, however, important to note that in the case of 100% financing in dirhams, the retransfer guarantee in Morocco cannot apply. Thus, respecting this minimum contribution proportion is the essential condition for being able to export your capital gains abroad when the time comes.
Who is eligible for the retransfer guarantee in Morocco to repatriate their money?
This right to protection applies to a wide profile of investors wishing to secure their funds. First of all, the retransfer guarantee in Morocco concerns foreign residents or non-residents. Additionally, foreign legal entities, such as companies investing in Marrakech, can also claim it. Furthermore, Moroccans Residing Abroad (MRE) have just as much right to export their capital gains and recover their invested capital in foreign currency.
Is the retransfer guarantee in Morocco transmissible in case of inheritance?
Yes, absolutely. In fact, heirs of a property fully benefit from the retransfer guarantee in Morocco. Since the initial investment is already registered with the Office des Changes, this right is preserved during the transfer of assets. However, it is important to specify that the heirs will have to settle the mandatory taxes and fees during the resale. Consequently, your family remains perfectly protected and will be able to repatriate the money from the sale legally in the event of succession.
Maître, is there an official resource foreign buyers can refer to to understand the legal framework of their investment?
Absolutely, because transparency is at the heart of the Kingdom’s economic strategy. Indeed, the Ministry of Economy and Finance offers the official Investor’s Guide, which lists the protection mechanisms. This reference document confirms that the retransfer guarantee in Morocco is an acquired right to secure your capital. Furthermore, your notary remains the preferred contact for verifying the compliance of your file. Thus, you benefit from double security for your future real estate purchase in Marrakech.
In conclusion: Maître, what is your advice for an investor wishing to buy property in Morocco?
It is primordial to strictly follow the formalities of the Office des Changes from the very beginning of your project. Specifically, our advice is to systematically keep all proofs of your transfers sent from abroad, whether sent to the notary’s CDG account or a convertible account. Ideally, you should ask your notary to register the retransfer guarantee in Morocco as soon as the purchase deed is signed to gain peace of mind.
If this step was not carried out during the acquisition, you can contact your bank and carefully keep all these supporting documents. Indeed, they will be indispensable on the day of the resale to repatriate the money from your sale and export your capital gains without any technical difficulty.
In summary, the retransfer guarantee in Morocco constitutes the pillar of financial security for any foreign investment in Marrakech. Specifically, this mechanism assures buyers that they can recover their capital and transfer their profits in foreign currency. FOCH Real Estate supports you in these procedures so that the peace of mind of your investment is total, from acquisition to resale.
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