Buying Property in Morocco as a Foreigner

How to buy a property in Morocco? What is the purchase process like? How high are realtors´ and lawyers´ fees in Morocco? What about other property purchase costs?

In this article we will cover an overview of what you can expect when purchasing real estate in Morocco. We cover the costs, taxes, process and some of the legal aspects.

How difficult is the property purchase process in Morocco?

Foreign real estate ownership is allowed in Morocco, though foreigners cannot buy agricultural land. It is best to open a Moroccan bank account that enables foreign currency to be converted to Dirham to be used for the transaction, and for easier repatriation of funds in the future.

Morocco homes for rent

It is best to work with a real estate agent, and a lawyer is also helpful in understanding the legalities and procedures, usually done in the local language. The agent, also known as "simsaar", usually does not speak English. The English-speaking lawyer also comes in handy when dealing with the "simsaar".

In Fez (medina), houses do not have titles. Instead, an official scribe "adoul" writes scrolls to document the ownership of the houses. These scrolls can date back up to hundreds of years. It is possible to acquire a title for these houses, once purchased, through a notary.

It is usual to pay a deposit once the purchase price has been agreed on. This is not a guarantee, however, that the seller takes the house off the market, so it is safer to just give a deposit instead of paying the full amount immediately. Sometimes, houses being sold are still occupied. The buyer has to wait for the owner or occupant to move out and turn over the key.

The buying process is otherwise the same as in France and Spain, with a notary acting for both parties. Signatures on the sales deed of the contracting parties should be notarized. The sales deed should then be registered with the relevant registration office. The buyer then applies for the listing of the registered deed to the land registry.

What are the costs like when purchasing a property in Morocco?

Transaction Costs

    Who Pays?
Property Transfer Tax 1.00% - 6.00% buyer
Notary Fees 0.50% - 1.00% buyer
Legal Fees 1.00% - 5.00% buyer
Real Estate Agent´s Fee 3.00% buyer
Costs paid by buyer 5.50% - 15.00%
Costs paid by seller 0%
Source: Global Property Guide

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.

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.

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