The price in the sale agreement is never the full cost of buying. In Morocco you add registration duty, a land registry fee and the notary's fees. Together they usually come to a figure in the order of 6 to 7 percent of the price for a built property, and it is better to plan on the higher side.
The three main costs
- Registration duty (droits d'enregistrement): the largest part, paid to the tax administration when the deed is registered.
- Land registry fee (conservation foncière): charged when the transfer is recorded on the title.
- Notary's fees: for drafting and handling the deed, with VAT on top.
Rates and bases can change with the finance law and depend on the type of property, so ask the notary for a written statement before you sign. Do not rely on a figure you read online, including this one.
An example of how to budget
If you are looking at a villa priced at 5,000,000 MAD, set aside roughly 300,000 to 350,000 MAD on top for these costs, and keep a margin. Add your own expenses: translation of documents, a lawyer if you hire one, bank charges if you finance.
Who pays what
In practice the buyer pays the registration duty and the registry fee, and the notary's bill is usually split or charged to the buyer according to the agreement. The sale agreement should say so. If it does not, ask.
Ways to lose money
Declaring a lower price to reduce the duty is a bad idea. It is illegal, and it hurts you later: your capital gain on resale will look larger and, for foreign buyers, it can block the transfer of the money abroad. Read our article on capital gains tax and on repatriating the proceeds of a sale.
The notary is a neutral party
The notary protects the transaction, not one side of it. Choose someone who is used to foreign buyers, who will explain each clause and who answers messages. A good notary is worth more than a small saving on the fee.
Frequently asked questions
Are the fees the same for an apartment, a riad and a plot of land?
Not always. Rates and bases can differ by type of property and by whether it is built. That is why the notary's written statement matters more than a general percentage.
Can the fees be financed by a bank loan?
Rarely. Plan to pay them in cash on top of the deposit, and keep a margin.
Do I pay the notary before the signature?
The notary usually asks for the funds to cover the duties before or at the signing. The statement lists each item, so you can see where the money goes.
Planning a purchase? Start with our villas, apartments or riads, then ask us for a full cost estimate.