Buying Property in Morocco? Here is exactly how much tax you pay

Considering a luxury property investment in Marrakech? Understanding the complete cost breakdown is essential for making an informed decision. This guide walks you through all the fees and taxes associated with purchasing property in Morocco, using a luxury property in Hivernage, Marrakech as a real-world example.

Property Overview

For this breakdown, we’ll examine a luxury property in Hivernage, Marrakech with a purchase price of 2,230,000 MAD (approximately €205,000).

Registration & Legal Fees

When purchasing property in Morocco, you’ll encounter three main registration and legal fees:

Registration Fee
This is the largest single fee you’ll pay, calculated at 4% of the property price.
Cost: 89,200 MAD

Land Conservation Fee
This fee goes toward maintaining land registry records, calculated at 1.5% of the property price.
Cost: 33,450 MAD

Ownership Certificate
A nominal administrative fee for your official ownership documentation.
Cost: 100 MAD

Notary & Administrative Costs

In addition to registration fees, you’ll need to account for notary services and related administrative expenses:

Notary Fee
The notary fee is calculated at 1% of the property purchase price.
Cost: 22,300 MAD

Notary VAT
Value-added tax is applied to the notary fee at a rate of 20%.
Cost: 4,460 MAD

Stamping Fee
This fixed fee covers the legal documentation process.
Cost: 1,700 MAD

Total Transaction Cost

When you add up all the fees and taxes, the total transaction cost for this property comes to 151,210 MAD (approximately €13,900).

This represents 6.79% of the property purchase price, which is an important factor to budget for when planning your property investment in Morocco.

Summary Breakdown

Property Price: 2,230,000 MAD (€205,000)
Total Fees & Taxes: 151,210 MAD (€13,900)
Percentage of Purchase Price: 6.79%