K
Key Mortgages S.L
New Member
You can take out of Morocco at sale of the property the following.
Any monies physically transferred into Morocco for the purchase
Any monies paid off the capital of the mortgage for the term you have held it but not the interest payments.
On top of this money you can then take profits minus the 20% capital gain tax up to the sum of the above.
From this you can see that taking a mortgage rather than paying cash will limit the amount of profit you can take out the country unless you run the mortgage for the full term and make full capital repayments. You should therefore consider all options available to you such as equity release in the UK as if you do this you move more funds into Morocco and open up the scope for taking out a higher level of profit at sale.
On the plus side the Morocco mortgage keeps your assets and liabilities separate to anything you have and wish to do in the UK both now and for the future.
Please see below an example of profit repatriation as it relates to taking a mortgage in Maroc.
Cash buyer
Purchase € 100.000
Closure costs € 5.000
Total funds moved into Morocco € 105.000
At sale the client can take back € 105.000
Plus profits minus capital gains tax up to another € 105.000
Mortgage buyer using Maroc property as security
Purchase € 100.000
Closure costs € 5.000
Deposits 30% plus closure costs € 35.000
Mortgage € 70.000
Total € 105.000
At sale client can take back € 35.000 moved into Morocco
Assume € 5k paid off mortgage € 5.000
Total € 40.000
At sale client can take back the € 40.000 of deposit and mortgage repayments
Plus profit minus capital gains up to another € 40.000
If capital growth and net profits does not exceed € 40k then client can take back all their original funds plus all their profit however any profits above the € 40k would have to remain in Morocco.
The cash buyer on the other hand can take back the money put into the purchase plus closure costs and profits up to € 105.000. If they take a mortgage against a property not in Morocco then they become as far as the Maroc government is concerned a cash buyer and all the funds can be seen to physically have been moved into Maroc. Basically you can take profits out up to the same level as monies you moved into Morocco in the first place plus the physical funds moved into Morocco. A mortgage taken in Maroc does not qualify as monies moved in which is why it limits the amount of profit that can be taken back at a later date.
These are the current rules on repatriation of profits. These may be subject to change and legal advice should be taken on you’re the specific implications for you before proceeding.
Please also note all clients after approval have to physically go to the bank present themselves and their original documents to open the bank account for payments this must be done before completion.
Any monies physically transferred into Morocco for the purchase
Any monies paid off the capital of the mortgage for the term you have held it but not the interest payments.
On top of this money you can then take profits minus the 20% capital gain tax up to the sum of the above.
From this you can see that taking a mortgage rather than paying cash will limit the amount of profit you can take out the country unless you run the mortgage for the full term and make full capital repayments. You should therefore consider all options available to you such as equity release in the UK as if you do this you move more funds into Morocco and open up the scope for taking out a higher level of profit at sale.
On the plus side the Morocco mortgage keeps your assets and liabilities separate to anything you have and wish to do in the UK both now and for the future.
Please see below an example of profit repatriation as it relates to taking a mortgage in Maroc.
Cash buyer
Purchase € 100.000
Closure costs € 5.000
Total funds moved into Morocco € 105.000
At sale the client can take back € 105.000
Plus profits minus capital gains tax up to another € 105.000
Mortgage buyer using Maroc property as security
Purchase € 100.000
Closure costs € 5.000
Deposits 30% plus closure costs € 35.000
Mortgage € 70.000
Total € 105.000
At sale client can take back € 35.000 moved into Morocco
Assume € 5k paid off mortgage € 5.000
Total € 40.000
At sale client can take back the € 40.000 of deposit and mortgage repayments
Plus profit minus capital gains up to another € 40.000
If capital growth and net profits does not exceed € 40k then client can take back all their original funds plus all their profit however any profits above the € 40k would have to remain in Morocco.
The cash buyer on the other hand can take back the money put into the purchase plus closure costs and profits up to € 105.000. If they take a mortgage against a property not in Morocco then they become as far as the Maroc government is concerned a cash buyer and all the funds can be seen to physically have been moved into Maroc. Basically you can take profits out up to the same level as monies you moved into Morocco in the first place plus the physical funds moved into Morocco. A mortgage taken in Maroc does not qualify as monies moved in which is why it limits the amount of profit that can be taken back at a later date.
These are the current rules on repatriation of profits. These may be subject to change and legal advice should be taken on you’re the specific implications for you before proceeding.
Please also note all clients after approval have to physically go to the bank present themselves and their original documents to open the bank account for payments this must be done before completion.
