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Property taxes and fees in Marrakech can significantly impact your investment budget and ongoing costs.
Understanding all the financial obligations when buying, owning, and selling property in Marrakech is essential for making informed investment decisions and avoiding unexpected expenses that can eat into your returns.
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 purchases in Marrakech typically involve 4% registration duty, 1-1.5% notary fees, and various administrative costs totaling around 7-9% of the purchase price.
Annual ownership costs include taxe d'habitation (2,000-6,000 MAD) and municipal service taxes, while rental income faces progressive tax rates starting at 10%.
| Fee Type | Rate/Percentage | Cost on 2,000,000 MAD Purchase |
|---|---|---|
| Registration Duty | 4% of purchase price | 80,000 MAD |
| Notary Fees | 1-1.5% of purchase price | 20,000-30,000 MAD |
| Conservation Foncière | 1% + fixed fees | 20,000-23,000 MAD |
| Agency Commission | 2.5% (typical) | 50,000 MAD |
| VAT (new builds only) | 20% of purchase price | 400,000 MAD (if applicable) |
| Administrative Fees | Various stamps/certificates | 2,000-5,000 MAD |
| Annual Taxe d'Habitation | 10-12% of rental value | 2,000-6,000 MAD/year |
What is the registration duty rate when buying a property in Marrakech?
The registration duty rate in Marrakech is 4% of the purchase price for all property transactions.
This tax is mandatory and applies to both Moroccan nationals and foreign buyers without distinction. The duty is calculated on the official declared purchase price and must be paid during the property transfer process.
On a 2,000,000 MAD property purchase, you'll pay exactly 80,000 MAD in registration duty (2,000,000 × 4%). This fee is non-negotiable and represents one of the largest upfront costs after the property price itself.
The registration duty is collected by the tax administration and serves as official recognition of the property transfer in Marrakech's land registry system.
What are the notary fees in Marrakech and how are they calculated?
Notary fees in Marrakech typically range from 1% to 1.5% of the property's purchase price.
These fees cover the notary's professional services, including document preparation, legal verification, and overseeing the property transfer process. Notaries in Morocco have fixed fee schedules that vary slightly based on the complexity of the transaction and property value.
For a 2,000,000 MAD apartment purchase, expect to pay between 20,000 MAD (1%) and 30,000 MAD (1.5%) in notary fees. Most transactions fall closer to the 1.2-1.3% range, meaning approximately 24,000-26,000 MAD for this purchase amount.
It's something we develop in our Morocco property pack.
What are the land registration and conservation foncière fees?
Land registration and conservation foncière fees amount to approximately 1% of the purchase price plus additional fixed administrative costs.
The conservation foncière is Morocco's land registry system that maintains official property records. The base fee is 1% of the property value, with additional charges for stamps, duplicates, and administrative processing ranging from 1,000 to 3,000 MAD.
On a 2,000,000 MAD property transaction, you'll pay 20,000 MAD for the base conservation fee, plus an additional 1,000-3,000 MAD in administrative costs, totaling approximately 21,000-23,000 MAD.
These fees ensure your property ownership is properly recorded in Morocco's official land registry and provide legal protection for your investment.
What are the standard real estate agency commission rates in Marrakech?
Real estate agency commissions in Marrakech typically range from 2.5% to 5% of the property price, with 2.5% being the most common rate for buyers.
Commission rates can vary depending on the property type, location within Marrakech, and whether it's a luxury or standard property. International agencies may charge higher rates than local ones, but often provide additional services like legal assistance and multilingual support.
For a 2,000,000 MAD property purchase, expect to pay approximately 50,000 MAD in agency commission at the standard 2.5% rate. Higher-end properties or premium locations like Hivernage or Palmeraie might see commissions reach 60,000-100,000 MAD (3-5%).
Some agencies may offer lower commission rates in exchange for exclusive representation agreements or cash purchases.
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Is there VAT applied to new-build properties in Marrakech?
Yes, new-build properties in Marrakech are subject to 20% VAT (TVA) applied to the sale price.
This VAT applies only to first-time sales of newly constructed properties directly from developers. Resale properties (second-hand) are exempt from VAT, making them significantly more affordable from a tax perspective.
For a new-build property costing 2,000,000 MAD, you would pay an additional 400,000 MAD in VAT, bringing the total cost to 2,400,000 MAD. This substantial additional cost makes new developments considerably more expensive than existing properties.
The VAT is calculated on the full purchase price and must be paid as part of the property transaction. This tax significantly impacts the total investment required for new-build purchases in Marrakech.
Are there additional mortgage-related registration fees?
Yes, mortgage financing involves additional registration fees of 1.5% of the total mortgaged amount for loans between 250,000 and 5,000,000 MAD.
These fees cover the registration of the mortgage lien with the land conservation office and provide legal security for the lending institution. Banks typically require borrowers to pay these fees as part of the loan processing costs.
Additional fixed fees include a 100 MAD duty per property registered, plus various administrative costs that can add 2,000-5,000 MAD to the total mortgage registration expense.
For example, on a 1,500,000 MAD mortgage, you'd pay 22,500 MAD in registration fees (1.5%) plus the fixed administrative costs, totaling approximately 24,500-27,500 MAD in mortgage-related fees.
What is the annual taxe d'habitation in Marrakech?
The annual taxe d'habitation for residential properties in Marrakech ranges from 10% to 12% of the property's official rental value.
| Property Type | Tax Rate | Typical Annual Cost (MAD) |
|---|---|---|
| Small Apartment (60-80m²) | 10-12% of rental value | 2,000-3,500 |
| Medium Apartment (100-120m²) | 10-12% of rental value | 3,500-5,000 |
| Large Apartment (150m²+) | 10-12% of rental value | 5,000-8,000 |
| Villa (200-300m²) | 10-12% of rental value | 6,000-12,000 |
| Luxury Villa (400m²+) | 10-12% of rental value | 10,000-20,000 |
This tax applies to both primary and secondary residences and is based on the theoretical rental value determined by local tax assessors, not the actual market rental rate.
What is the taxe de services communaux?
The taxe de services communaux is a municipal services tax calculated at approximately 6% of the property's official rental value annually.
This tax funds local municipal services including waste collection, street maintenance, public lighting, and local infrastructure improvements in Marrakech neighborhoods. The tax is separate from the taxe d'habitation and represents an additional annual ownership cost.
For an average-sized property in Marrakech, expect to pay between 1,000-4,000 MAD per year in municipal services tax. A typical 100m² apartment might cost around 2,000-2,500 MAD annually, while larger villas can reach 3,000-5,000 MAD per year.
Payment is usually due annually and failure to pay can result in penalties and legal complications when trying to sell the property.
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Are there land taxes for vacant plots in Marrakech?
Yes, vacant land in Marrakech is subject to taxe foncière at rates of approximately 2-3% of the assessed property value per year.
This tax is designed to encourage development and prevent speculative land hoarding in urban areas. The exact rate depends on the land's location, size, and zoning classification within Marrakech's municipal boundaries.
Assessed values are typically lower than market values, but the tax still represents a significant annual cost for undeveloped land. Properties in prime locations like near the Medina or Palmeraie face higher assessments and tax rates.
Land owners must pay this tax annually regardless of whether they're actively developing the property or generating income from it.
It's something we develop in our Morocco property pack.
What taxes apply to rental income from Marrakech properties?
Rental income from Marrakech properties is subject to Morocco's progressive income tax (IR) rates, starting at 10% for lower income brackets.
The tax structure includes several brackets: 10% on income up to 30,000 MAD, 20% on income from 30,001-50,000 MAD, 30% on income from 50,001-60,000 MAD, 34% on income from 60,001-80,000 MAD, and 38% on income above 80,000 MAD annually.
Property owners can deduct legitimate expenses including property management fees, maintenance costs, insurance premiums, and depreciation allowances from their taxable rental income. Professional property management typically costs 8-12% of rental income in Marrakech.
For example, if you earn 60,000 MAD annually in rental income and have 15,000 MAD in deductible expenses, you'd pay tax on 45,000 MAD of net income, resulting in approximately 7,000 MAD in taxes (10% on first 30,000 + 20% on remaining 15,000).
What are the capital gains tax rates when selling property in Marrakech?
Capital gains tax on property sales in Marrakech is typically 20% of the net gain (sale price minus purchase price and documented improvement costs).
The taxable gain is calculated by subtracting the original purchase price, transaction costs, and any documented property improvements from the final sale price. Principal residences held for more than 6 years are generally exempt from capital gains tax.
For investment properties, if you bought a property for 2,000,000 MAD, spent 200,000 MAD on improvements, and sold it for 2,800,000 MAD, your taxable gain would be 600,000 MAD (2,800,000 - 2,000,000 - 200,000), resulting in 120,000 MAD in capital gains tax.
Keeping detailed records of all purchase costs, improvement expenses, and transaction fees is essential for minimizing your tax liability when selling.
It's something we develop in our Morocco property pack.
What hidden or administrative fees should buyers budget for?
Additional administrative fees in Marrakech property purchases typically total 2,000-5,000 MAD and include various stamps, certifications, and dossier preparation costs.
These fees include:
- Stamp duties (approximately 1% of purchase price): 20,000 MAD on a 2,000,000 MAD purchase
- Property certificates and legal verifications: 200-500 MAD per certificate
- Administrative processing and dossier preparation: 1,000-3,000 MAD
- Translation services for foreign buyers: 500-1,500 MAD
- Property survey and technical inspections: 1,000-2,500 MAD
While individually small, these costs can add up significantly and should be factored into your total acquisition budget. Most buyers underestimate these expenses, which can add 22,000-27,000 MAD to a typical property purchase.
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.
Understanding all property-related taxes and fees in Marrakech is crucial for accurate investment planning and avoiding unexpected costs that can significantly impact your returns.
As of September 2025, total acquisition costs typically range from 7-9% of the purchase price for existing properties, but can reach 27-29% for new-build properties due to the 20% VAT requirement.
Sources
- Moroccan Dream - Hidden costs when buying property in Marrakech
- Properties Morocco - Notary fees in Marrakech
- Chic Marrakech - Property buying process
- Feel Home - Notary fees in Morocco
- Gide - Real estate practice guide Morocco
- Celestia Invest - Guide to notary fees in Morocco 2024
- Agence KNA - Common mistakes foreigners make investing in Marrakech
- Agenz - Land registration fees in Morocco