Who can buy property in Morocco?

In Morocco, there are no restrictions on the types of properties that foreigners can own, allowing for a wide range of investments, including residential, commercial, and luxury real estate. However, it’s important to note that ownership of agricultural land is subject to specific limitations. Foreigners typically cannot acquire agricultural land, as Moroccan law aims to preserve local farming and protect the interests of domestic farmers.

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Investing in Morocco's real estate offers a unique opportunity due to the country’s growing economy, strategic location, and rich cultural heritage. Morocco's real estate market has shown resilience and potential for appreciation, particularly in key cities like Marrakech, Casablanca, and Tangier, which attract both domestic and international buyers. The government actively encourages foreign investment and has implemented favorable policies to facilitate property purchases, making it easier for investors to navigate the market.

The tourism sector is another significant driver of real estate demand, as Morocco remains a popular destination for travelers seeking diverse experiences, from historical sites to beautiful landscapes. This creates opportunities for rental properties and vacation homes, particularly in tourist hotspots. Additionally, Morocco's stable political environment and ongoing infrastructure development, such as new transportation projects and urban revitalization efforts, further enhance the attractiveness of real estate investments.

The relatively affordable property prices compared to European markets also present a compelling argument for investment, as buyers can secure valuable assets with the potential for strong rental yields and long-term growth.

Below are some sought-after destinations for real estate investment in Morocco:

• Marrakech - Marrakech, known as the "Red City," is one of Morocco’s prime locations for real estate investment. Its thriving tourism sector makes it particularly attractive for investors seeking holiday homes, boutique hotels, or luxury villas. Key areas like the historic Medina and the upscale Gueliz district are popular for their vibrant atmosphere, cultural heritage, and modern amenities.
• Casablanca - As Morocco’s largest city and economic hub, Casablanca offers a wide range of real estate opportunities, particularly in the commercial and residential sectors. Areas like Ain Diab, Anfa, and the city center are in demand for their mix of modern apartments, office spaces, and luxury residences. Casablanca is a major draw for investors seeking a high-paced urban lifestyle with strong rental demand.
• Rabat - The capital city of Rabat is an appealing destination for real estate due to its political importance and more relaxed atmosphere compared to Casablanca. Investors are drawn to the city’s residential properties, especially in the Souissi and Hay Riad neighborhoods, which are known for their luxury villas and serene surroundings. Rabat offers a balance of city living and coastal tranquility, making it an ideal location for families and retirees.
• Tangier - Tangier, a port city located at the crossroads of Europe and Africa, has been undergoing significant development in recent years. With its proximity to Spain and the Mediterranean, the city is popular with international buyers. The areas of Malabata and Marshan are particularly sought-after for their luxury apartments, beachfront properties, and investment potential in tourism-related ventures.
• Essaouira - Essaouira, a charming coastal town, has become a popular destination for those looking for a more laid-back lifestyle. Known for its historic medina, beautiful beaches, and artistic community, Essaouira offers real estate investors a mix of traditional Moroccan riads and modern villas. The town’s growing popularity with tourists and expatriates makes it a great option for those interested in vacation homes or rental properties.

Where to find properties online:

• https://www.mubawab.ma/
• https://www.avito.ma/
• https://www.sarouty.ma/

Financing

Foreigners can obtain mortgage loans in Morocco, although the process may differ from that for local buyers. Many Moroccan banks and financial institutions offer mortgage options to non-residents, but they typically have specific requirements that must be met. Foreign buyers usually need to provide documentation such as proof of income, a valid passport, and sometimes a residence permit. Most lenders will also require a substantial down payment, often ranging from 30% to 50% of the property's value.

Due Diligence and Sales Contract 

The due diligence process is a vital step that entails a comprehensive evaluation of the legal, financial, and physical aspects of a property before finalizing the purchase. This thorough review confirms that the seller has legitimate ownership, verifies that the property is clear of any legal complications, such as disputes, debts, or liens that could threaten your ownership rights, and ensures that the property adheres to local regulations. It is strongly advisable to engage a local attorney or notary to help navigate this process effectively.

In Morocco, the property sales contract is referred to as the "contrat de vente." This document details the terms and conditions agreed upon by both the buyer and the seller, encompassing aspects such as the purchase price, payment terms, and specific property details. Once signed by both parties, this contract becomes legally binding. The property purchasing process is generally similar for both local buyers and foreign nationals; however, non-residents may face specific tax obligations or additional administrative procedures. It is essential for foreign buyers to be mindful of these elements, as they could affect the overall cost and timeline of the transaction.

Property Buying Costs and Taxes in Morocco

Footnotes to Transaction Costs Table

The round trip transaction costs include all costs of buying and then re-selling a property - lawyers' fees, notaries' fees, registration fees, taxes, agents' fees, etc.

Currency:
Morocco uses the Moroccan Dirham (MAD) . The exchange rate as of 08 July 2024: US$1 = MAD 9.8605. Property value is US$250,000 approximately MAD 2,465,121.

Legal Fees:
Due to the complex nature of the Moroccan property registration and ownership system, it is highly advisable for the buyer to hire a lawyer to represent him. Legal fees are negotiable, ranging from 1.00% to 5.00% of the property value plus 10% VAT.

Registration Duties:
A registration duty from 1.00% to 6.00% is applicable to the acquisition of buildings by individuals or legal entities. A registration duty from 1.00% to 6.00% is also imposed on the acquisition of undeveloped land to build houses and premises.

Notary Fee
Notary fees are around 0.50% to 1.00% of the property value.

Real Estate Agent's Fee:
The real estate agent or simsaar typically charges the buyer 3.00% of the purchase price as commission.