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Everything you need to know before buying real estate is included in our Morocco Property Pack
Morocco's property taxes and fees are structured around specific percentages and fixed rates that apply to both locals and foreigners equally. Property buyers face registration fees of 4% of the purchase price, notary fees ranging from 1% to 1.5% plus VAT, and land registry fees of 1.5% of the property value.
As of September 2025, property owners pay annual property tax calculated on assessed rental value with progressive rates from 0% to 30%, municipal services tax at 10.5% for urban areas or 6.5% for peripheral zones, and capital gains tax of 20% on net profit when selling (with a 3% minimum of sale price).
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Morocco's property taxation system applies the same rates to both Moroccan nationals and foreign buyers, with no additional fees for non-residents purchasing real estate.
Total upfront costs when buying property typically amount to 8-10% of the purchase price when combining all registration fees, notary costs, stamps, and administrative charges.
| Tax/Fee Type | Rate/Amount | When Paid |
|---|---|---|
| Property Registration Tax | 4% of purchase price (standard properties) | At purchase |
| Notary Fees | 1% to 1.5% + 10% VAT | At purchase |
| Land Registry Fees | 1.5% + fixed fees (200-500 MAD) | At purchase |
| Stamp Duty | 1% of property price | At purchase |
| Annual Property Tax | 0-30% of assessed rental value (progressive) | Yearly |
| Municipal Services Tax | 10.5% (urban) or 6.5% (peripheral) | Yearly by May 31 |
| Capital Gains Tax | 20% of net gain (3% minimum of sale price) | When selling |
| Mortgage Registration | 1.5% of loan amount | If financing |
How much is the property registration tax when buying real estate in Morocco?
Morocco's property registration tax stands at 4% of the purchase price for standard residential and commercial properties as of September 2025.
The registration fee varies based on property type and buyer status. Social housing qualifies for a reduced rate of 3% of the purchase price. Bare land purchases face a higher rate of 5% unless the buyer commits to developing the property within seven years.
Moroccans Residing Abroad (MREs) benefit from preferential treatment with the standard 4% rate applying to most property types. For family donations in the direct line, MREs pay only 1.5% registration fees. This tax must be paid within 30 days of the property deed signing to avoid penalties and higher rates.
The registration tax is calculated on the declared purchase price stated in the notarial deed. Tax authorities may challenge undervalued declarations and impose penalties if the declared price significantly differs from market value.
Registration must occur at the local tax office or through the notary handling the transaction to ensure legal ownership transfer.
What are the notary fees and how are they calculated?
Notary fees in Morocco range from 1% to 1.5% of the property purchase price, with an additional 10% VAT applied to these fees.
The notary collects various taxes and administrative charges beyond their professional fees. These include registration fees, stamp duties, and land registry costs, typically totaling 6% to 7% of the property price for all legal and registration services.
Notary fees are calculated as a percentage of the transaction value stated in the purchase agreement. For a property worth 2 million MAD, notary fees would range from 20,000 to 30,000 MAD, plus 2,000 to 3,000 MAD in VAT charges.
The notary is responsible for verifying property titles, conducting legal due diligence, preparing the sale deed, and ensuring all taxes are properly paid before ownership transfer. Additional services like mortgage arrangements may incur extra fees of 1% to 2% of the property value.
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What percentage do you need to pay for land registry fees?
Land registry fees in Morocco are set at 1.5% of the property purchase price, plus minor fixed amounts for certificates and registration documents.
These conservation fees ensure the property is properly registered in the official land records and the new owner receives clear title. The 1.5% fee applies to the full purchase price regardless of property type or location.
Fixed administrative fees of 200 to 500 MAD apply for property certificates, duplicates, and various registration acts. These amounts are standardized across Morocco and cover the cost of administrative processing and documentation.
Land registry registration must be completed to obtain legal ownership rights and protection under Moroccan property law. Without proper registration, buyers cannot claim full legal ownership of their property.
The total land registry cost for a 1.5 million MAD property would be 22,500 MAD (1.5%) plus approximately 300-400 MAD in fixed certificate fees.
Are there any mortgage registration fees if you finance the property with a loan?
Mortgage registration in Morocco incurs a fee of approximately 1.5% of the total loan amount, not the property value.
This registration fee secures the lender's rights over the property as collateral for the loan. The fee is calculated on the mortgage amount rather than the property purchase price, which can result in significant savings for buyers making large down payments.
For a 1 million MAD mortgage, the registration fee would be around 15,000 MAD. Banks typically require borrowers to pay this fee as part of the loan setup costs. Legal and agency fees for financing arrangements may add another 1% to 2% of the purchase price.
Mortgage registration creates a legal charge on the property that prevents sale or transfer without the lender's consent until the loan is fully repaid. This protection mechanism ensures lenders can recover their funds if borrowers default on payments.
Some banks include mortgage registration fees in their loan packages, while others require separate payment at closing.
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How much is the annual property tax (Taxe Foncière) and how is it calculated?
Morocco's annual property tax uses a progressive rate system from 0% to 30% based on the property's assessed annual rental value.
| Annual Rental Value Range | Tax Rate | Example Calculation |
|---|---|---|
| Up to 5,000 MAD | 0% | Properties worth 5,000 MAD or less pay no tax |
| 5,001 to 20,000 MAD | 10% | 15,000 MAD rental value = 1,500 MAD tax |
| 20,001 to 40,000 MAD | 20% | 30,000 MAD rental value = 6,000 MAD tax |
| Over 40,000 MAD | 30% | 50,000 MAD rental value = 15,000 MAD tax |
| Primary residence | 25% of above rates | Primary residences pay only 25% of calculated tax |
Local tax authorities assess the annual rental value based on property size, location, and market conditions. Primary residences benefit from a significant reduction where only 25% of the assessed rental value is subject to taxation.
Newly constructed properties receive a five-year tax exemption from the completion date. This exemption encourages new construction and property development across Morocco.
Property tax payments are due annually and collected by local municipal authorities. The assessment system considers comparable rental properties in the area to determine fair rental values for tax purposes.
What is the municipal services tax and how often is it paid?
Morocco's municipal services tax is levied annually on all buildings based on their assessed rental value, with rates varying by location.
Urban and tourist areas face a 10.5% municipal services tax rate, while peripheral areas pay 6.5% of the assessed rental value. This tax funds local infrastructure, waste management, street lighting, and municipal services.
Primary residences occupied by the owner or close family members receive a 75% reduction in the taxable base. This substantial discount significantly lowers the tax burden for homeowners living in their properties.
Payment is due annually by May 31 of each year. Late payments may incur penalties and interest charges imposed by municipal authorities. Property owners receive tax notices detailing their assessment and payment requirements.
For a property with a 25,000 MAD assessed rental value in an urban area, the municipal services tax would be 2,625 MAD (25,000 × 10.5%). Primary residence owners would pay only 656 MAD (25% of 2,625 MAD) due to the 75% reduction.
Are there additional local taxes depending on the city or region?
Yes, Morocco imposes additional urban land tax (TNB) on undeveloped land, with rates varying significantly by city and infrastructure level.
Urban land tax rates typically range from 4 to 20 MAD per square meter depending on the area's classification and available infrastructure. Cities like Casablanca and Rabat have higher rates due to better infrastructure and services.
Local councils have autonomy to set specific rates based on infrastructure development, public services availability, and urban planning classifications. Well-equipped areas with water, electricity, and road access face higher tax rates than basic zones.
Regional variations exist where coastal tourist areas like Agadir may impose additional tourism-related taxes or fees. Mountain regions and rural areas generally have lower tax rates reflecting reduced infrastructure and services.
Some municipalities impose special assessments for major infrastructure projects like new roads, sewage systems, or public facilities that directly benefit property owners in specific areas.
Do foreigners pay any extra taxes or fees when buying property in Morocco?
No, foreigners pay exactly the same taxes and fees as Moroccan nationals when buying property in Morocco.
The Moroccan tax system applies uniform rates regardless of nationality or residency status for property purchases. Registration fees of 4%, notary fees of 1% to 1.5%, land registry fees of 1.5%, and stamp duties apply equally to all buyers.
Foreign buyers face the same annual property taxes, municipal services taxes, and ongoing ownership costs as local residents. There are no discriminatory tax rates or additional bureaucratic fees imposed on international property investors.
Non-resident sellers face slightly higher capital gains tax rates of 25% compared to 20% for residents, but this applies to the selling phase rather than the purchase process.
Morocco actively encourages foreign investment in real estate and maintains tax equality to attract international buyers and promote economic development.
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What are the capital gains taxes when selling a property?
Morocco imposes a 20% capital gains tax on the net profit from property sales, with a minimum tax of 3% of the sale price.
The net capital gain is calculated as the sale price minus the original purchase price, acquisition costs, and documented improvements. Sellers pay whichever amount is higher between 20% of the net gain or 3% of the total sale price.
Non-resident sellers face a higher rate of 25% on capital gains. Long-term ownership provides increasing allowances and exemptions for residents after five years of ownership, reducing the effective tax rate for properties held longer.
For example, selling a property purchased for 1.5 million MAD at 2 million MAD generates a 500,000 MAD gain. The tax would be 100,000 MAD (20% of gain) or 60,000 MAD (3% of sale price), so the seller pays 100,000 MAD.
Documentation of all improvement costs and acquisition fees is essential to minimize taxable gains and ensure accurate tax calculations.
Are there inheritance or gift taxes on Moroccan property transfers?
Morocco does not impose direct inheritance tax, but registration fees apply when transferring property to heirs or as gifts.
Inheritance transfers require registration fees of 1.5% if the division occurs within two years of death. Delays beyond this period may result in proportional fees and penalties. A fixed 200 MAD fee covers succession registration processing.
Gift transfers within direct family lines (parents to children, between spouses, or siblings) incur 1.5% registration fees plus 1.5% land registry fees. Other gift recipients pay 4% for buildings and 5% for bare land.
Gifts to children or between spouses and siblings are generally exempt from capital gains tax but must pay the required registration and conservation fees. This creates significant tax advantages for family property transfers.
Proper legal documentation through notaries ensures compliance with inheritance laws and Islamic succession principles that govern property inheritance in Morocco.
Are there stamp duties or administrative fees involved in the process?
Yes, Morocco imposes stamp duties of 0.8% to 1% of the property price, plus various fixed administrative fees.
Stamp duties apply to both property registration and legal documents required for the transaction. The standard rate is 1% of the property purchase price, levied alongside other registration fees.
Fixed administrative fees range from 100 to 500 MAD for various documents including property certificates, deed copies, and official registrations. These fees cover the cost of governmental processing and document preparation.
Certificate fees typically cost 200 to 500 MAD for items like property title certificates, ownership duplicates, or registration acts. These amounts are standardized across Morocco regardless of property value.
Total stamp duties and administrative fees usually add 1% to 1.5% to the overall purchase cost when combined with the various fixed charges required for complete property registration.
What are the ongoing homeowner association or syndic fees for maintenance and shared services?
Syndic (homeowner association) fees in Morocco are not fixed by law but typically range from a few hundred to several thousand MAD annually.
These fees cover maintenance of shared areas, building insurance, cleaning services, security, elevator maintenance, and common utilities in condominium developments. The exact amount depends on property size, building amenities, and service levels provided.
Syndic fees are determined by majority vote of property owners in each building or complex. Luxury developments with pools, gyms, and concierge services charge significantly higher fees than basic residential buildings.
Non-payment of syndic fees can result in loss of voting rights in building decisions and legal action for debt collection. Property owners are legally obligated to contribute to shared maintenance costs.
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Average syndic fees range from 1,000 to 5,000 MAD annually for standard apartments, while luxury properties may cost 10,000 MAD or more per year depending on services and building quality.
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 Morocco's property tax structure is essential for making informed investment decisions in the Moroccan real estate market.
It's something we develop in our Morocco property pack.
Sources
- Orchid Island - Real Estate Taxation Morocco 2025
- Bladi.net - Morocco Real Estate Tax Cuts 2025
- Moroccan Dream - Real Estate Taxation Guide
- Agenz.ma - Notary Fees Morocco
- Properties Morocco - Notary Fees Guide
- Global Property Guide - Morocco Taxes
- LYZ Marrakech - Municipal Service Tax
- Abdel Realty - Capital Gains Tax
- Barnes Marrakech - Foreign Buyer Taxes
- Global Property Guide - Morocco Inheritance