Foreign Investors in Morocco: Repatriate your Currencies with the "Garantie de Retransfert"

The garantie de retransfert enables non-residents to bring back their funds and profits, once taxes are settled, following the sale of real estate in Morocco.

Without this garantie, the process of repatriating foreign currency funds would span across four years.

It's important to note that the buyer can also benefit from this garantie, provided the seller has previously taken advantage of it.

There's no doubt that Morocco holds a significant appeal for foreign investors in the real estate sector. Factors like the diverse offerings, strategic location, and political stability all encourage investments in Morocco. Nonetheless, exercising caution and seeking information as a foreigner about the conditions and regulations set by the country's authorities regarding fund repatriation in case of property resale is advisable.

The Garantie de Retransfert

In the context of a real estate transaction in Morocco, its advisable to opt for titled real estate, which means properties registered with the National Agency of Land Conservation, Cadastre, and Cartography (ANCFCC). This helps prevent potential disputes or fraudulent activities. As for repatriating funds from the sale of real estate in Morocco, understanding the associated measures is crucial to benefit from the garantie de retransfert. This garantie only applies to investments made in foreign currencies and registered with the Office of Foreign Exchange. Essentially, the buyer must have acquired the real estate using foreign currencies transferred to a convertible account in Moroccan dirhams. This account enables the transfer of the necessary foreign currencies for property purchase. The payment is made in Moroccan dirhams, while proof of the origin of the foreign currency funds is provided.

Once the transaction is registered with the Office of Foreign Exchange, the garantie de retransfert is activated. This step is essential to repatriate the invested funds in the event of real estate sale.

It's worth noting that the garantie de retransfert hinges on an investment in foreign currencies. Whether the buyer pays in euros, dollars, or any other convertible currency (when the seller is a foreigner), or in Moroccan dirhams through a convertible dirham account, both investment scenarios involve the prior transfer of foreign currencies. Consequently, they qualify for the garantie de retransfert after registration with the Office of Foreign Exchange.

Furthermore, currency transfers can occur from one foreign account to another if the transaction involves two foreign individuals and the funds bypass Morocco. Nevertheless, fees, taxes, transaction costs, etc., must be repatriated to Morocco in foreign currencies or withdrawn from a foreign currency account or a convertible dirham account. Transactions can also pass through the account of the notary responsible for transaction-related registrations.

Validity of the Garantie de Retransfert

The buyer's ability to repatriate funds after selling a property significantly impacts the decision to invest in Morocco. Hence, understanding the garantie de retransfert criteria is paramount. As mentioned earlier, to qualify for the garantie, funds must initially stem from a payment in foreign currencies. This condition also applies when constructing a house following the acquisition of land in Morocco. To benefit from the garantie de retransfert, all funds used by the investor to pay the construction company must flow through a convertible dirham account. This ensures fund traceability and transparency with the Office of Foreign Exchange.

Moreover, for foreigners seeking financing from a Moroccan bank to make a purchase in Moroccan dirhams, the garantie de retransfert can apply if the financing doesn't exceed 70% of the property value and the remaining 30% originates from an investment in foreign currencies. However, a 100% credit in Moroccan dirhams isn't eligible for the garantie de retransfert. It's important to mention that credits granted for real estate investments by foreigners are processed through designated "special" accounts, and repayments occur via convertible dirham or foreign currency accounts.

In the Absence of the Garantie de Retransfert

It's essential to remember that the Office of Foreign Exchange closely monitors currency operations, including real estate transactions, conducted by foreigners. Without the garantie de retransfert, a foreigner would need to spread the repatriation of foreign currency funds over four years, at a rate of 25% per annum. Only after this four-year period can they access the entirety of their funds. The funds must initially be deposited in a convertible dirham account before being converted into currency and transferred to a foreign account.

To summarize, the garantie de retransfert streamlines the process of repatriating foreign currency funds from the sale of Moroccan real estate. To qualify, the initial real estate investment must have been made in foreign currencies, typically via a convertible dirham account, and the foreign currency investment must be registered with the Office of Foreign Exchange. It's important to note that the buyer can inherit this garantie, provided the seller has previously taken advantage of it.

Moreover, only non-residents and foreigners can repatriate and convert funds into foreign currencies for foreign destinations after selling Moroccan real estate. In the absence of the garantie de retransfert, the repatriation process will span four years, at a rate of 25% per annum.

Your Trusted Partner

Vasuda International stands out as uniquely positioned to provide exceptional assistance to foreign investors seeking to convert and transfer their currencies to Morocco. Leveraging our extensive expertise in international currency transfers and competitive exchange rates, we streamline the currency conversion and transfer process, enabling investors to proceed with confidence. Recognizing the crucial importance of repatriating currencies after selling property in Morocco, we offer prompt and secure solutions, ensuring investors repatriate their funds and potential profits without hassle or undue delay. Our commitment to transparency, reliability, and simplicity makes Vasuda International the preferred partner for foreign investors looking to optimize their real estate transactions in Morocco.