MOROCCO Law and Practice Contributed by: Loris Marghieri, Dounia El Aissaoui, Julien Nouchi and Mounia Larhrissi, Gide Loyrette Nouel
Non-Agricultural Use In accordance with the provisions of Decree No 2-04-683 of 6 January 2005 on the regional commission responsible for certain land trans - actions, foreign natural and legal persons may purchase rural agricultural land with a view to carrying out an investment or other economic project of a non-agricultural nature. This is sub - ject, however, to requesting and being granted a certificate of non-agricultural use.
For loan repayments, the General Instruction allows foreign financing under specific condi - tions, enabling a Moroccan borrower to repay a foreign lender. Additionally, creating the beneficiary’s adminis - trative file at the Land Registry can be complex. It requires collecting corporate and administra - tive documents in original, certified or apostilled form and may sometimes involve an exequatur procedure, leading to potential delays. 3.4 Taxes or Fees Relating to the Granting and Enforcement of Security The following tax registration obligations and Land Registry fees are applicable upon the reg - istration of a mortgage (which is mandatory). • Registration duties (payable to the tax authorities): These are calculated on the total amount secured, but the taxable basis also includes – in addition to the amount secured in the principal – the expected expenses (or 6% of the principal if no estimation is made) and the interest (capped at the value of the interest paid over two years). The amount of the taxable basis thus determined is subject to registration duties at a rate of 1.5% and is payable within 30 days following execution of the mortgage. • Land Registry fees: These depend on the value of the mortgage, as follows: (a) lower than MAD250,000 – 0.5%; (b) between MAD250,000 and MAD5 million – 1.5%; and (c) above MAD5 million – 0.5%. A fixed duty (per property) of MAD100 also applies. No stamp duties apply to credit or security agreements (subject to exceptions).
3. Real Estate Finance 3.1 Financing Acquisitions of Commercial Real Estate
Real estate investors in Morocco typically finance the acquisition of commercial proper - ties through a combination of equity, including internal shareholder financing, and bank loans. 3.2 Typical Security Created by Commercial Investors Lenders often request the following securities: • a mortgage over the real estate asset; • a pledge over the business; • a pledge over receivables; • a bank account pledge; • a delegation of insurance proceeds; • assignment of receivables (especially rents when the asset is leased); and • a pledge of shares. 3.3 Restrictions on Granting Security Over Real Estate to Foreign Lenders Enforcing a security in Morocco for a foreign lender involves transferring enforcement pro - ceeds abroad, which typically requires spot authorisation from the Foreign Exchange Office, as the General Instruction on Foreign Exchange does not explicitly permit this operation.
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