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Everything you need to know before buying real estate is included in our Morocco Property Pack
Buying property in Casablanca comes with a complex web of taxes and fees that can significantly impact your investment budget. Understanding these costs upfront is crucial for making informed real estate decisions in Morocco's economic capital.
From registration duties and notary fees to annual property taxes and capital gains obligations, each step of property ownership in Casablanca has specific financial implications that vary based on whether you're buying a primary residence, second home, or rental investment.
If you want to go deeper, you can check our pack of documents related to the real estate market in Morocco, based on reliable facts and data, not opinions or rumors.
Property transactions in Casablanca involve registration duties of 4% of purchase price, notary fees of approximately 1.7% including VAT, and land registry costs of 1.5% plus fixed fees.
Annual ownership costs include municipal property taxes starting at 10.5% of assessed rental value, while rental income faces progressive taxation from 0% to 30% depending on income brackets.
| Fee Category | Rate/Calculation | Cost on MAD 2M Property |
|---|---|---|
| Registration Duty | 4% of purchase price | MAD 80,000 |
| Land Registry | 1.5% + MAD 200 fixed | MAD 30,200 |
| Notary Fees (all-in) | 1% + 20% VAT + disbursements | MAD 34,000-37,000 |
| Agency Commission | 2-5% (buyer pays) | MAD 40,000-100,000 |
| Annual Property Tax | 10.5% of rental value | MAD 10,000+/year |
| Mortgage Costs (80% LTV) | Various fees + 1.5% registration | MAD 34,200-53,200 |
| Capital Gains Tax | 20% of net gain | Variable on sale |
What concrete example should we use to calculate all property taxes and fees in Casablanca?
We'll use a MAD 2,000,000 apartment of 120 m² located in Casablanca as our consistent example throughout this analysis.
This property represents a typical mid-range investment in Casablanca's residential market, making it ideal for demonstrating real-world costs. The apartment will serve as either a primary residence, second home, or rental property depending on the specific tax calculation being discussed.
This price point falls above the social housing threshold (typically under MAD 250,000), so standard tax rates apply without special discounts. The 120 m² size is representative of a three-bedroom apartment that attracts both local buyers and foreign investors.
Using this concrete example allows us to provide exact MAD amounts rather than vague percentages, giving you precise budget expectations for your Casablanca property purchase.
What are the exact purchase tax rates in Casablanca and how much do they total on a MAD 2,000,000 property?
The standard registration duty (droits d'enregistrement) in Casablanca is 4% of the purchase price for residential properties.
This registration tax applies to all property transfers and is paid to the Moroccan tax administration during the notarial process. The 4% rate is consistent across Morocco for standard residential purchases.
Reduced rates of 3% exist for social housing and low-value properties, but our MAD 2,000,000 example exceeds these thresholds. New builds under certain government programs may qualify for temporary reductions, but these are rare for properties in this price range.
For our MAD 2,000,000 apartment, the registration duty totals exactly MAD 80,000. This amount is non-negotiable and must be paid at closing regardless of financing arrangements.
What are the land registry fees and title issuance costs for this property?
Land registry fees (conservation foncière) in Casablanca are calculated at 1.5% of the purchase price plus fixed administrative charges.
The 1.5% charge covers the registration of your property ownership with Morocco's land conservation system. This ensures your legal title is properly recorded and protected under Moroccan law.
Additional fixed fees include title certificate issuance (approximately MAD 200), administrative processing charges, and documentation fees. These fixed costs remain constant regardless of property value.
For our MAD 2,000,000 example, total land registry costs are MAD 30,200 (MAD 30,000 for the 1.5% registration plus MAD 200 for title issuance). These fees are mandatory for all property purchases in Morocco.
How are notary fees calculated and what's the total notary bill for this purchase?
| Notary Fee Component | Calculation Method | Amount (MAD) |
|---|---|---|
| Base Notary Fee | 1% of purchase price | 20,000 |
| VAT on Fee | 20% of base fee | 4,000 |
| Disbursements & Admin | Fixed costs | 10,000-13,000 |
| Document Preparation | Additional services | 1,000-3,000 |
| Total Notary Bill | All components combined | 34,000-37,000 |
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What are the real estate agency commission rates and costs in Casablanca?
Standard real estate agency commissions in Casablanca range from 2% to 5% of the purchase price, with 3% being the most common rate.
The buyer typically pays the entire commission in Morocco, unlike many Western markets where seller and buyer split costs. This commission covers property sourcing, negotiation, legal guidance, and transaction coordination.
Commission rates may vary based on property type, location within Casablanca, and agency reputation. Luxury properties or complex transactions sometimes command higher rates, while cash purchases might secure small discounts.
For our MAD 2,000,000 apartment, expect to pay between MAD 40,000 (at 2%) and MAD 100,000 (at 5%), with MAD 60,000 (3%) being typical. Always negotiate commission rates before signing any agency agreement.
What mortgage-related costs apply when using 80% financing on this property?
Mortgage financing on a MAD 1,600,000 loan (80% of MAD 2,000,000) involves several mandatory fees paid at closing.
Loan arrangement fees typically range from 0.5% to 1.5% of the principal amount, covering bank processing and underwriting. For our example, this means MAD 8,000 to MAD 24,000 depending on the lender.
Additional mortgage costs include property appraisal (MAD 2,000-5,000), file processing charges, and mortgage registration with the land registry at 1.5% of the loan amount (MAD 24,000). Title certificate fees add another MAD 200.
Total bank-related closing costs for our 80% LTV mortgage range from MAD 34,200 to MAD 53,200. These fees are separate from ongoing interest payments and must be paid upfront.
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What VAT and municipal fees apply to new-build or off-plan purchases in Casablanca?
New construction and off-plan (VEFA) purchases in Casablanca are subject to 20% VAT on the property value.
Most developers include VAT in their advertised prices, so the MAD 2,000,000 purchase price should already incorporate the 20% tax. However, always verify this with your developer to avoid surprises.
Municipal fees for new developments can include infrastructure contributions, permit fees, and connection charges for utilities. These typically range from 1% to 3% of the property value but vary by district within Casablanca.
If VAT and municipal fees are charged separately on our MAD 2,000,000 example, budget an additional MAD 0 to MAD 60,000. Most established developments include these costs, but always confirm during contract negotiations.
What annual municipal property taxes will you pay while owning this apartment?
Casablanca municipal property tax is calculated at 10.5% of the assessed annual rental value of your property.
The assessed rental value is typically estimated at 5% of the purchase price, meaning our MAD 2,000,000 apartment has an assessed rental value of approximately MAD 100,000 annually. Property tax on this would be MAD 10,500 per year at the full rate.
Primary residences receive significant abatements, with only 25% of the rental value subject to taxation. This reduces annual property tax to approximately MAD 2,625 for primary residences versus MAD 10,500 for investment properties.
New construction enjoys a five-year exemption from municipal property taxes, providing substantial savings in the early ownership years. After this exemption expires, standard rates apply based on property usage.
What tax exemptions and reductions exist for primary residences and first-time buyers?
Several tax advantages apply to primary residences and specific buyer categories in Casablanca real estate transactions.
1. **New Construction Exemption**: Five-year municipal property tax exemption for newly built properties2. **Primary Residence Reduction**: Only 25% of assessed rental value is taxable (75% reduction in annual property tax)3. **Social Housing Rates**: 3% registration duty instead of 4% for qualifying low-cost housing under MAD 250,0004. **First-Time Buyer Programs**: Limited special financing programs through government initiatives5. **Capital Gains Relief**: Complete exemption from capital gains tax for primary residences owned and occupied for more than six yearsFor our MAD 2,000,000 apartment used as a primary residence, annual tax savings total approximately MAD 7,875 per year (MAD 10,500 standard rate minus MAD 2,625 primary residence rate). Over five years with new construction exemption, total savings reach MAD 39,375.
The property value exceeds social housing thresholds, so the 3% reduced registration duty doesn't apply to our example.
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What taxes apply to long-term rental income and how much would you owe on MAD 96,000 annual rent?
Morocco applies progressive tax rates to net rental income, with brackets ranging from 0% to 30% depending on income levels.
The tax structure for rental income in 2025 includes: 0% on income up to MAD 40,000, 10% on income from MAD 40,001 to MAD 60,000, 20% on income from MAD 60,001 to MAD 80,000, and 30% on income above MAD 80,000.
For MAD 96,000 gross annual rental income, the calculation works as follows: First MAD 40,000 taxed at 0% (MAD 0), next MAD 20,000 taxed at 10% (MAD 2,000), next MAD 20,000 taxed at 20% (MAD 4,000), and final MAD 16,000 taxed at 30% (MAD 4,800).
Total annual tax liability on MAD 96,000 rental income equals MAD 10,800. This assumes no deductible expenses; mortgage interest, maintenance costs, and management fees can reduce taxable income.
What additional levies apply to short-term or furnished rentals in Casablanca?
Short-term and furnished rentals in Casablanca face additional municipal taxes and permit requirements beyond standard rental income taxation.
Tourist accommodation levy ranges from MAD 10 to MAD 20 per night depending on property classification and location within Casablanca. For a property with 60% annual occupancy (219 nights), this adds MAD 2,190 to MAD 4,380 annually.
Municipal permits for short-term rentals may require annual fees ranging from MAD 2,000 to MAD 5,000 depending on property size and neighborhood regulations. Some districts have additional restrictions or higher permit costs.
Total additional costs for short-term rental operation typically range from MAD 4,000 to MAD 9,000 annually beyond standard income taxes. These costs are deductible against rental income for tax purposes.
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How is capital gains tax calculated when selling and what fees apply at sale?
Capital gains tax in Morocco is levied at 20% of the net profit from property sales, with specific exemptions for primary residences.
Using our example of buying at MAD 2,000,000 and selling at MAD 2,600,000, the gross capital gain equals MAD 600,000. If this property was not your primary residence or was owned for less than six years, capital gains tax would be MAD 120,000 (20% of MAD 600,000).
Primary residences owned and occupied for more than six years receive complete capital gains tax exemption, potentially saving MAD 120,000 in our example. Second homes and investment properties don't qualify for this exemption.
Sale-side costs include notary fees (approximately 1% of sale price) and registry fees, totaling MAD 20,000 to MAD 40,000 for our MAD 2,600,000 sale. Capital gains tax must be declared within 30 days of sale, with late penalties of 5% to 10% per month for overdue payments.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Property taxation in Casablanca involves substantial upfront costs that can add 10-15% to your purchase price when including all fees, taxes, and professional services.
Understanding these costs enables better investment planning and helps avoid budget surprises that could derail your Casablanca real estate acquisition.
It's something we develop in our Morocco property pack.