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Yes, the analysis of Fes' property market is included in our pack
Buying property in Fes involves multiple taxes and fees that can significantly impact your total investment cost. Understanding these costs upfront helps you budget accurately and avoid surprises during the transaction process.
Property buyers in Fes typically face registration duties of 4%, notary fees of 1%, land registry costs of 1.5%, plus various other charges that can total 10-12% of the purchase price. The exact amounts depend on whether you're buying new or resale property, your residency status, and the property's intended use.
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 taxes and fees in Fes include upfront transaction costs of approximately 85,000-90,000 MAD on a 747,000 MAD apartment purchase.
Ongoing annual costs include municipal property taxes around 6,000 MAD per year and building maintenance fees ranging from 2,400-7,200 MAD annually.
| Fee Type | Rate/Amount | Cost on 747,000 MAD Property |
|---|---|---|
| Registration/Transfer Duty | 4% | 29,880 MAD |
| Land Registry + Stamping | 1.5% + 200 MAD | 11,405 MAD |
| Notary Fees + VAT | 1% + 10% VAT | 8,217 MAD |
| Agency Commission + VAT | 2.5% + 20% VAT | 22,410 MAD |
| Municipal Property Taxes | ~20% of annual rental value | 6,000 MAD/year |
| Co-ownership Fees | 200-600 MAD/month | 2,400-7,200 MAD/year |
| Capital Gains Tax (resale) | 20-25% | 50,600-63,250 MAD on gain |
What exact purchase price are you projecting in Fes, and is the property new-build or resale?
As of September 2025, the average property price in Fes is approximately 8,700 MAD per square meter.
For a standard 2-bedroom apartment of 85 square meters in desirable areas like Agdal or Ville Nouvelle, you're looking at around 747,000 MAD. Modern apartments typically range from 630,000 to 800,000 MAD depending on size and location. Investment-focused riads in the Medina start at 1,000,000 MAD and can go significantly higher.
Most properties available in Fes are resale units rather than new construction. The resale market dominates because Fes is a historic city with limited new development compared to cities like Casablanca or Rabat. New-build units are rare and typically command premium prices when available.
It's something we develop in our Morocco property pack.
Will it be your primary home, secondary residence, or rental, and do you qualify for any exemptions?
Your property's intended use and your residency status significantly affect the taxes and fees you'll pay.
Most foreign buyers purchase properties in Fes as secondary residences or rental investments, which means they don't qualify for first-home buyer exemptions. These exemptions are primarily available to Moroccan residents buying their first primary residence within specific price thresholds (typically under 250,000 MAD for social housing).
First-home buyers who qualify can benefit from reduced registration fees of 3% instead of the standard 4%, and capped notary fees of 2,500 MAD regardless of property value. However, these exemptions are rarely applicable to foreign investors or those buying properties above the social housing price limits.
For the typical foreign buyer scenario—purchasing as a secondary residence or investment property—you'll pay standard rates across all fee categories without any reductions.
What is the transfer/registration duty rate for your property, and how much does that cost?
The standard transfer/registration duty rate in Fes is 4% of the declared purchase price for most properties.
On a 747,000 MAD apartment, the registration duty would be 29,880 MAD. This is the largest single fee you'll pay during the transaction and is non-negotiable.
Different rates apply in specific cases: social housing under 250,000 MAD gets a reduced rate of 3%, while luxury properties above 2 million MAD may face progressive rates up to 5-7%. However, for typical apartments in the 630,000-800,000 MAD range, the standard 4% rate applies universally.
This fee is paid directly to the tax administration and must be settled before the property transfer can be completed.
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If the property is new, what VAT rate applies and how much is that?
VAT only applies to new-build properties sold by developers, not to resale transactions between individuals.
For new properties under 2 million MAD intended as primary residences, the VAT rate is 18%. Luxury new-builds valued at 2 million MAD or above face a 20% VAT rate. Social housing may qualify for reduced rates of 10% or complete VAT exemption, but this applies only to specific government-approved developments.
On a new 747,000 MAD apartment, you would pay 134,460 MAD in VAT at the 18% rate. This VAT is typically included in the advertised price, but you should always confirm with the developer whether the quoted price is VAT-inclusive or exclusive.
Since new construction is limited in Fes compared to other Moroccan cities, most buyers will be purchasing resale properties where VAT doesn't apply.
What are the notary fees, and what's the total cost for your property?
Notary fees in Morocco are calculated at 1% of the declared property value, with a minimum fee of 2,500 MAD, plus 10% VAT on the notary fee itself.
For a 747,000 MAD property, the calculation would be: 1% equals 7,470 MAD, plus 747 MAD in VAT, totaling 8,217 MAD in notary fees.
First-time home buyers in certain social housing programs may benefit from capped notary fees of 2,500 MAD regardless of property value, but this applies only to eligible residents buying within specific price and location parameters.
The notary handles the legal aspects of the property transfer, ensures all documentation is correct, and registers the transaction with the appropriate authorities. These fees are standard across Morocco and non-negotiable.
What are the land registry and stamping fees, and what's the total?
Land registry fees are charged at 1.5% of the declared property value, plus fixed stamping fees of 200 MAD.
On a 747,000 MAD property, the land registry fee would be 11,205 MAD, plus 200 MAD for stamping, totaling 11,405 MAD.
These fees cover the registration of your ownership with the Conservation Foncière (Land Registry Office) and the issuance of official certificates proving your legal title to the property.
This registration is essential for establishing clear legal ownership and is required for any future sale or mortgage of the property. The fees are standardized nationally and cannot be reduced or negotiated.
If you use a mortgage, what are the bank fees and mortgage registration costs?
Mortgage-related fees in Morocco include bank dossier fees, property appraisal costs, and mortgage registration tax.
Bank dossier fees typically cost 1% of the loan amount but are negotiable, usually ranging from 5,000 to 10,000 MAD. Property appraisal fees range from 2,000 to 5,000 MAD depending on the bank and property location. The mortgage registration tax is 1.5% of the total loan amount.
For a 70% loan-to-value mortgage on a 747,000 MAD property (522,900 MAD loan), the mortgage registration tax would be 7,843 MAD. Combined with dossier and appraisal fees, total mortgage-related costs typically range from 15,000 to 20,000 MAD.
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Are you paying real estate agency commission, and what does that cost?
Real estate agency commissions in Fes typically range from 2.5% to 4% of the purchase price, plus 20% VAT on the commission.
Using the standard 2.5% rate on a 747,000 MAD property, the commission would be 18,675 MAD, plus 3,735 MAD in VAT, totaling 22,410 MAD.
Commission rates are negotiable, particularly for higher-value properties. Some agencies may charge 4% for smaller transactions or properties requiring extensive marketing efforts.
The commission is typically paid by the seller, but this cost is often factored into the property price. In some cases, buyers may negotiate to share commission costs with the seller or pay the agency directly for exclusive representation services.
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Which municipal property taxes apply in Fes, and what do they cost annually?
Fes property owners pay two main municipal taxes: Taxe d'Habitation and Taxe des Services Communaux.
Taxe d'Habitation applies to both primary and secondary residences at rates between 10-30% of the annual rental value, with new builds exempt for the first five years. Taxe des Services Communaux is charged at 10% of the annual rental value for municipal services.
If your 747,000 MAD property has an estimated annual rental value of 29,880 MAD (4% of capital value), the combined municipal taxes would be approximately 5,976 MAD per year. The exact amount depends on local municipality assessments and can vary between different districts of Fes.
These taxes fund local infrastructure, waste collection, street maintenance, and other municipal services. Payment is typically due annually, with some municipalities offering quarterly payment options.
If you rent the property, what tax will you pay on rental income?
Rental income in Morocco is subject to progressive individual income tax rates up to 37%, with a standard 40% deduction allowed for expenses and depreciation.
After the 40% deduction, you pay tax on 60% of gross rental income. For a property renting at 3,000 MAD per month (36,000 MAD annually), the taxable income would be 21,600 MAD. At the maximum tax rate of 37%, this results in 7,992 MAD annual tax, or approximately 666 MAD per month.
Non-resident landlords may opt for a flat 20% tax rate in some cases, which could be more beneficial depending on income levels and other factors.
The 40% expense deduction covers maintenance, management fees, insurance, and property depreciation, making it a significant benefit for rental property investors.
What will you pay for building maintenance and co-ownership fees?
Building co-ownership fees in Fes modern apartments typically range from 200 to 600 MAD per month, translating to 2,400 to 7,200 MAD annually.
These fees cover common area maintenance, security services, cleaning, elevator maintenance, and building insurance. Higher-end buildings with amenities like gyms, pools, or 24-hour security command fees at the upper end of this range.
Traditional riads in the Medina don't have syndic fees since they're individual houses, but they require higher individual maintenance costs due to their age and traditional construction materials.
Special assessments for major repairs or building upgrades can occur occasionally, requiring additional one-time payments that typically range from 1,000 to 5,000 MAD per unit depending on the scope of work.
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What capital gains tax applies when you sell the property?
Capital gains tax rates depend on your residency status and how long you've owned the property.
Moroccan residents who hold property for more than five years pay 20% tax on capital gains, with exemptions available for primary residences up to 4 million MAD. Non-residents pay 25% capital gains tax regardless of holding period, with no primary residence exemption.
If you sell your 747,000 MAD property for 1,000,000 MAD, your capital gain would be 253,000 MAD. As a resident, you'd pay 50,600 MAD in tax (20%), while non-residents would pay 63,250 MAD (25%).
A minimum tax of 3% of the sale price applies if no capital gain can be demonstrated. Additional notary and registry fees similar to the purchase transaction may also apply, adding roughly 2-3% to your selling costs.
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 investment in Fes requires careful consideration of all associated taxes and fees, which can total 10-12% of the purchase price upfront.
Understanding these costs helps you budget accurately and avoid surprises during your property transaction in Morocco's cultural capital.
Sources
- Sands of Wealth - Fes Property Market
- Bladi.net - Morocco Real Estate Tax Changes 2025
- Orchid Island - Morocco Real Estate Taxation 2025
- Agenz.ma - Notary Fee Caps Morocco
- Agenz.ma - Notary Fees Morocco
- Moroccan Dream - Real Estate Taxation Guide
- Celestia Invest - Morocco Notary Fees Guide
- M2 Morocco - Real Estate Fees
- Chambers Practice Guides - Morocco Real Estate 2025
- Properties Morocco - Notary Fees Guide