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For all of you who is looking to rent your properties or taking out mortgage please be aware of the understated and bring into your calcultions.

1) While Moroccan Govt is claiming that there is no tax on income. This is not strictly correct. You pay VAT of around 20% on your rents that you collect and than what ever service you provide e.g linen etc as this will also attract VAT.

2) If you are taking out a mortgage or intend to take out a mortgage your interest rates will attracts 10% VAT, Yes you read it correct. So if the intrest rate is say 5% you add 10% VAT and thus the interest rates payable are 5.50%. Only, country in the world where this happens and this distorts the financial market.

3) You will be asked by the lender that the mortgage ( the monthly instalment ) has to be paid in foreign currency. Even though the mortgage is Moroccan Dirhams. This means

a) If you have collected rent in Dirhams you cant credit your mortgage account by it.

b) Sending foreign exchange to clear your mortgage means exposure to currency fluctations.

c) The bank will charge you for this transaction