Morocco – Property Taxes

What taxes and fees apply when buying a property in Morocco?

When acquiring property in Morocco, the buyer shoulders the majority of transaction costs. These are collected and remitted by the notary (notaire) — a state-appointed legal professional whose participation is compulsory for every property transfer. Prospective purchasers must plan their budget to accommodate several fees and taxes beyond the agreed sale price; as of 2025, total closing costs for resale properties typically fall between 8% and 12% of the property’s value. This is broadly in line with acquisition costs in countries such as the UK or Australia, though the composition of these charges differs considerably.

Registration duty (droits d’enregistrement): For standard residential purchases, registration duty currently stands at 4% of the property value. Social housing attracts a preferential rate of 3%, while undeveloped land is subject to a higher rate of 5%, unless the buyer commits to developing the land within seven years. This levy represents the largest individual government charge on most transactions.

Land conservation fee (conservation foncière): An additional 1.5% of the purchase price, plus a flat fee of 200 MAD for property certificates, is payable as the land conservation fee. This payment is directed to Morocco’s land registry authority, the ANCFCC, and formally records the change of ownership in the official title system.

Stamp duty: Stamp duty is levied at 1% of the property value and is obligatory for all real estate transactions. It is calculated on the full purchase price and settled during the property registration process. This charge is distinct from other registration costs and cannot be reduced or waived; the 1% rate applies consistently across different property types and price points.

Notary fees: The notary’s professional fee is typically 1% of the purchase price (excluding VAT), subject to a minimum charge of 2,500 MAD, with VAT on the notary’s invoice set at 10%. When all notary-associated charges are combined — including VAT on the notary’s services, land conservation taxes, and various administrative costs — the aggregate notary-related expenditure often reaches 6–7% of the purchase price, which is what most buyers effectively pay for the full notarial process.

Agent fees: If you engage a buyer-side estate agent, additional costs will apply. Real estate agency commissions generally range from 2.5% to 5% of the property price, with 2.5% being the most prevalent rate for buyers; the precise commission can vary depending on the property type, its location, and whether it is classified as luxury or standard.

VAT on new-build properties: For newly built properties, total acquisition costs can climb to 27–29% because of the 20% VAT requirement. This is a critical distinction from the resale market and must be factored carefully into the budgets of buyers considering off-plan or recently completed developments.

Mortgage registration tax: Buyers financing their purchase through a mortgage are subject to a mortgage registration tax of 1% of the loan principal, payable when registering the mortgage (hypothèque) with the relevant authorities. This charge is mandatory for all mortgage-backed acquisitions and is calculated on the total loan amount rather than the property’s value.

Worked example — 1,000,000 MAD resale apartment:

Figures are indicative as of 2025. Always request a detailed written quote (devis) from your notary before signing any preliminary contract, and verify current rates with the Direction Générale des Impôts (DGI) or the ANCFCC.

Step-by-step: how to complete a property purchase in Morocco

1. Agree the price and sign a preliminary contract (compromis de vente): A deposit of around 10% is customarily paid at this point. The contract records the agreed price, any conditions, and a completion deadline.
2. Carry out due diligence: Your notary or legal adviser will examine the title at the land registry (conservation foncière), confirm the absence of any liens or encumbrances, and check planning compliance.
3. Obtain financing (if applicable): Secure your mortgage from a Moroccan bank or, in certain circumstances, from an overseas lender using the Moroccan property as security.
4. Sign the final deed of sale (acte de vente) before the notary: Both buyer and seller sign in the notary’s presence, with the notary reading the deed aloud. The outstanding purchase price balance is transferred at this stage.
5. Pay all taxes and fees: The notary collects registration duty, stamp duty, conservation fees, and their own professional charges. Registration tax must be paid within 30 days of signing the purchase deed to avoid penalties; the notary collects it on behalf of the tax authorities.
6. Register the title: The notary lodges the deed with the land registry, and your name is formally recorded as the new property owner in the official register.
7. Receive your title certificate: The ANCFCC issues a titre foncier (land title certificate) confirming that ownership has been duly registered in your name.

What taxes and fees apply when selling a property in Morocco?

For sellers in Morocco, the principal financial liability at the point of sale is capital gains tax (taxe sur les profits immobiliers, or TPI) where a profit has been realised — this is addressed in full in the following section. Registration duty and land conservation fees are the buyer’s responsibility and do not fall to the seller.

Agent fees: Where a real estate agent has been appointed, commission is ordinarily negotiated directly between the agent and the seller, and may range from 2% to 5% of the sale price. Unlike certain other markets where commission splits are standardised, arrangements in Morocco vary considerably — always agree and document costs in writing before proceeding to list.

Legal and notary costs: The notary’s professional fee is ordinarily met by the buyer, but sellers sometimes choose to engage an independent legal adviser (avocat or conseil juridique) to review the sale contract and protect their interests. Legal advisory fees for solicitors are not set by law and differ from firm to firm.

Certificate costs: Prior to completing a sale, the seller may be required to obtain updated title certificates and a tax clearance document from the DGI confirming that no outstanding tax liabilities are attached to the property. These carry minor administrative charges.

Taken together, a seller’s out-of-pocket expenses — excluding any capital gains tax — are generally modest when compared with the buyer’s overall transaction costs. The most significant financial exposure for most sellers is the capital gains tax payable on any increase in value between the original acquisition price and the eventual sale price.

Is capital gains tax payable on property sales in Morocco?

Yes. Morocco levies a tax on profits arising from the sale of real estate, known as the taxe sur les profits immobiliers (TPI). It falls on the seller in respect of any gain realised between the acquisition cost and the sale proceeds, subject to permitted adjustments and indexation.

Rate: The TPI rate is set at 20% for secondary residences or in cases where the vendor was a principal resident in Morocco for more than six years. A minimum TPI floor of 3% of the gross sale price also applies regardless of whether a gain has been made — a mechanism designed to ensure a baseline tax contribution even on low-margin or loss-generating disposals.

How the gain is calculated: The chargeable gain is the difference between the sale price and the “fiscal purchase price” — that is, the original acquisition cost adjusted upward by an official indexation coefficient published annually by the DGI, together with the cost of any documented improvements and certain transaction costs incurred at the time of purchase. This indexation mechanism offers sellers partial protection against being taxed on gains that are purely a reflection of inflation, a concept broadly similar to the indexation relief that previously existed in countries such as Australia and the UK.

Primary residence exemption: Since 2020, sellers of their main residence are entitled to a complete exemption from capital gains tax, provided they have lived there as their habitual home for a minimum of six years. This is an extremely valuable relief, mirroring the principal private residence exemptions found in many other tax regimes. To qualify, sellers must be able to demonstrate habitual residence to the DGI’s satisfaction.

Non-residents: Under Morocco’s tax code, foreign investors owning property in Morocco are liable for capital gains tax on profits derived from that property; as a general principle, gains on real estate are taxed in the jurisdiction where the property is situated. Non-residents are not entitled to the primary residence exemption in respect of holiday homes or investment properties. A flat rate of 20% is expected to apply to foreign investors depending on taxable income, as confirmed for 2024, 2025, and 2026 under the current tax code.

Practical example:

Always verify current indexation coefficients and calculation rules with the DGI or a locally qualified tax adviser before completing a sale, as these figures are updated on an annual basis.

Are there annual property taxes in Morocco?

Yes. Morocco imposes two recurring annual charges on property owners. In absolute terms, these are generally modest compared with annual property taxes in countries such as France (taxe foncière), the United States (property tax), or the UK (council tax equivalent), but they nonetheless represent a real ongoing cost that should be factored into ownership budgets.

1. Taxe d’habitation (housing tax): Property owners are subject to the taxe d’habitation, which is calculated on the assessed rental value of the property and attracts rates ranging from 10% to 30% depending on the municipality. The assessed rental value (valeur locative) is established by local authorities and is typically considerably below prevailing market rental levels — meaning the effective annual liability is usually modest. Primary residences benefit from a 75% reduction on the assessed rental value calculation, making the real cost for owner-occupiers substantially lower.

2. Taxe de services communaux (municipal services tax): A second annual charge based on the same assessed rental value is levied to fund local infrastructure and public services. Urban properties are generally subject to a rate of 10.5% of the assessed rental value, while those on the urban fringe pay 6.5%. As with the taxe d’habitation, reductions are available for primary residences.

What does this cost in practice? For a typical residential property, the combined annual tax liability from taxe d’habitation and the municipal services tax might range from around 2,000 to 6,000 MAD for the housing tax element alone. For a standard apartment in a city such as Casablanca or Marrakech, the combined annual bill will often fall well below 10,000 MAD — a considerably lighter burden than equivalent recurring property levies in Western Europe or North America.

Certain properties are exempt from taxe d’habitation during the first five years following construction or initial acquisition — a relief that is particularly relevant for buyers of newly built property. Confirm eligibility for current exemptions with local tax offices or the DGI, as conditions can vary between municipalities.

How is rental income from property taxed in Morocco?

Individuals receiving rental income from Moroccan property are liable to income tax (impôt sur le revenu, or IR). Morocco’s framework offers two approaches: the standard progressive income tax route, or — from 2025 — an optional flat-rate liberatory tax.

Standard progressive route: Rental income received by individuals is subject to income tax under the general progressive rate schedule — with a top marginal rate of 37% applying to annual income exceeding 180,000 MAD — after a 40% flat rebate is applied to the taxable base. This rebate acts as a standard allowance in lieu of itemising actual expenses such as maintenance, management, and repairs.

Flat-rate liberatory option (from 2025): With effect from 1 January 2025, landlords may elect a flat-rate tax of 20% on rental income. Choosing this option removes the obligation to include this income in an annual tax return, greatly simplifying compliance — particularly for private individuals, employees, or retirees who also receive rental income.

Simplified rate thresholds: Under Morocco’s system, rental income is taxed at two simplified rates according to annual gross rental receipts. Properties generating under 120,000 MAD per year are taxed at 10% of gross rental income; those earning 120,000 MAD or more are subject to a 15% rate on the total amount. A standard deduction of 40% of gross rental income is available as an alternative to claiming itemised deductions.

Reporting obligations: Rental income must be declared and the corresponding tax settled by 1 March of the following tax year. Landlords are required to register with the DGI and retain records of all tenancy agreements. Failure to declare rental income may lead to penalties, backdated tax assessments, and interest charges.

Short-term rentals (Airbnb and similar platforms): Income from short-term lettings in Morocco is treated as rental income in principle and falls within the same income tax framework as long-term rentals — the 40% allowance and progressive IR brackets apply, as does the optional 20% flat rate available from 2025. There is no fundamentally different rate for short-term rental income, but operating in a manner resembling a hospitality business may attract additional compliance obligations, including licensing, registration, and potentially local tourist-related charges depending on the nature of the operation.

Non-residents: Non-residents deriving rental income from Moroccan property are also subject to Moroccan IR on that income. Morocco’s network of double tax treaties may provide relief against double taxation in the landlord’s country of residence — consult the applicable treaty and seek advice from a tax professional in both countries.

Does inheritance tax apply to property in Morocco?

Morocco does not impose a standalone inheritance tax — a position it shares with countries such as Canada and Australia, which similarly levy no inheritance tax as such. That said, the manner in which property passes on death is strongly shaped by Morocco’s legal framework, and registration fees become payable when title is formally transferred to heirs.

Sharia-based succession for Muslims: For Moroccan Muslim nationals and residents, inheritance is governed by the Moudawwana (Family Code) and Islamic succession principles. Real estate is distributed to heirs in accordance with fixed Quranic shares. There is no inheritance tax per se, but heirs must register the transfer of title at the land registry, which gives rise to a reduced registration duty.

Non-Muslim and foreign heirs: Non-Muslim foreigners may, under certain conditions, have the succession law of their nationality applied, or may be subject to Moroccan law given that the property is situated in Morocco. The legal position can be intricate, and the interplay between Moroccan succession rules, the heir’s national law, and any relevant double taxation treaty warrants careful review by a specialist lawyer — ideally before or during the estate planning process.

Registration fees on inheritance: When heirs formally register inherited property at the conservation foncière, a reduced registration duty applies — typically lower than the 4% charged on a conventional sale — though fees do still arise. Confirm the current applicable rates with the ANCFCC or a notary.

Double tax treaties: Morocco has concluded double taxation agreements with a number of countries, some of which address inheritance or estate taxes. However, since Morocco itself levies no inheritance tax, treaty provisions are more commonly relevant to capital gains tax on a subsequent sale by the heirs than to any charge on the death transfer itself. Always verify the position under any applicable treaty with advisers qualified in both jurisdictions.

Does gift tax apply to property transfers in Morocco?

Morocco does not have a dedicated gift tax of the kind found in some countries — such as France’s droits de donation, which can reach 45% for transfers to unrelated parties. However, gifting a property is by no means entirely tax-free, as registration duties and potential income tax consequences arise from such transfers.

Registration duty on gifts: A property conveyed by way of gift (donation) is subject to registration duty. Transfers between close family members — for example, between spouses, or from parent to child — typically attract a reduced rate of 1.5%. Gifts between unrelated parties are subject to the standard 4% rate. These rates should be confirmed with the DGI since the annual Finance Act may amend them.

TPI implications: Where a property is gifted at a value exceeding the original acquisition price, the donor may face a capital gains tax liability under TPI rules, as the value transferred is treated in a similar manner to a disposal. The rules governing this were clarified by Morocco’s 2025 Finance Act, which specifies that transfers of real estate from private assets to business assets are taxable where the transfer value exceeds the original purchase price, and fall outside the scope of IR where the value is equal to the original price.

Inheritance planning: Because lifetime (inter vivos) gifts of property can trigger both registration fees and TPI, many families in Morocco plan transfers with care — sometimes using family-owned property companies (sociétés civiles immobilières) to facilitate more tax-efficient arrangements. The 2025 Finance Act also confirms that contributions of shares in unlisted property companies by individuals will now benefit from a tax deferral, a measure intended to encourage asset restructuring and the transfer of real estate holdings. Specialist advice is strongly recommended before undertaking any significant lifetime property transfer strategy.

Are there any tax advantages or incentives for buying property in Morocco?

Morocco provides a number of meaningful reliefs and incentives that can reduce the tax burden on property buyers, owners, and investors. Understanding these before selecting a property type or structuring a purchase can result in significant savings.

Primary residence CGT exemption: As discussed above, a complete exemption from capital gains tax is available on the sale of a main residence where the owner has lived there for a minimum of six years. This is among the most valuable tax reliefs accessible to owner-occupiers.

New-build taxe d’habitation exemption: Properties that have been newly constructed or acquired for the first time are generally exempt from taxe d’habitation for five years from the date of completion or first occupation. This can yield meaningful annual savings during the initial years of ownership.

Social housing reduced rates: Social housing benefits from a lower registration fee of 3%, and additional relief measures have historically been applied to encourage purchases of affordable properties. Government-backed affordable housing schemes may carry further advantages, including reduced VAT.

Flat-rate rental income option: From 1 January 2025, landlords may opt for a flat-rate tax of 20% on rental income, removing the need to submit an annual return for this source of income and substantially simplifying tax management. For those with higher rental receipts, this flat rate may prove more advantageous than the top progressive IR rate of 37%.

Tax deferral for property company contributions: Under the 2025 Finance Act, contributions of shares in unlisted property companies by individuals now qualify for a tax deferral — a measure relevant to investors restructuring or consolidating real estate portfolios.

Tourist and hospitality investment zones: Morocco has designated certain tourism development and investment zones with specific incentive frameworks, including reduced corporate tax rates for qualifying hotel or resort developments. These provisions are primarily of interest to commercial investors rather than residential purchasers, though they may also be relevant to those developing mixed-use or holiday rental properties.

Do different rules apply to foreign buyers or non-residents purchasing property in Morocco?

Morocco is notably welcoming to foreign property ownership — as a foreign national you have the legal right to hold sole ownership of real estate in Morocco, a provision that makes the country particularly attractive to international investors. It should be noted, however, that this right applies to properties in urban areas; restrictions may apply in rural zones, and consulting a specialist lawyer is advisable in such cases.

Transaction taxes — no surcharge: Morocco applies identical purchase tax rates to residents, foreign nationals, and companies at the point of acquisition; registration fees, notary costs, stamp duty, and VAT remain the same regardless of the buyer’s nationality or residency status. There is no equivalent of the foreign buyer surcharges that exist elsewhere, such as the additional Stamp Duty Land Tax levied on non-UK residents, or the foreign buyer taxes applicable in Canada and Australia.

Banking and fund transfers: A notable advantage for foreign purchasers is that it is possible to open a Moroccan bank account without being a resident, which considerably simplifies financial transactions connected with a property purchase. Funds brought from abroad to finance a purchase must be transferred through official banking channels and evidenced by a foreign exchange import certificate (attestation d’importation de devises). This certificate is important: it will be needed later if you wish to transfer the sale proceeds out of Morocco.

Capital gains and repatriation: Non-residents who sell Moroccan property are subject to TPI at 20% (or the 3% minimum floor) and cannot benefit from the primary residence exemption unless they can establish habitual residence in Morocco for six or more years. When repatriating sale proceeds, the foreign currency import certificate is indispensable proof that the original funds were introduced from abroad — retain it carefully throughout the entire period of ownership.

Compliance requirements: Foreign buyers may encounter additional requirements, including the need for certified translations and interpreter services, as well as complications arising from properties with permit irregularities or multiple heirs. Engaging an independent bilingual lawyer — separate from the notary — is strongly recommended for first-time foreign buyers navigating these complexities.

Inheritance by non-Muslim foreign heirs: As noted in the inheritance section, the interaction between Moroccan succession law and the national law of a foreign heir calls for specialist legal guidance. Estate planning measures taken during one’s lifetime — such as executing a will valid under Moroccan law or holding the property through a dedicated company — are worth considering for non-Muslim property owners in Morocco.

Frequently asked questions

How much should I budget for taxes and fees on top of the purchase price in Morocco?

As of 2025, total closing costs typically range from 8% to 12% of the property value for resale properties. For new-build properties, total acquisition costs can reach 27–29% due to the 20% VAT requirement. Always ask your notary for a written cost estimate (devis) before signing anything.

Who pays the notary fees in Morocco — the buyer or the seller?

In Morocco, it is the buyer who customarily bears the bulk of notary-related costs, including the notary’s professional fees and associated administrative and registration charges. The seller’s financial exposure is typically limited to capital gains tax on any profit realised, together with any agreed estate agent commission.

Is there a capital gains tax exemption if I sell my main home in Morocco?

Yes. Since 2020, a complete exemption from capital gains tax applies to the sale of a main residence where the owner has lived there for a minimum of six years. You will need to demonstrate habitual residence to the DGI’s satisfaction. Check the current qualifying conditions with the DGI or a local tax adviser, as the criteria may be updated by the annual Finance Act.

Do I pay annual property taxes in Morocco even if I don’t rent the property out?

Yes. Property owners are liable for taxe d’habitation and the taxe de services communaux irrespective of whether the property is let. However, primary residences benefit from a 75% reduction applied to the assessed rental value calculation, and newly built properties are typically exempt from taxe d’habitation during the first five years. In practice, the annual tax liability on a standard residential property is modest.

How is rental income taxed for non-residents with property in Morocco?

Non-residents receiving rental income from Moroccan property are subject to Moroccan income tax (IR) on that income, on the same basis as residents — either under the progressive rate schedule after a 40% deduction, or under the flat 20% liberatory rate available since January 2025. Double tax treaties between Morocco and your country of fiscal residence may provide relief against double taxation. Seek advice from a tax professional in both jurisdictions.

Can I repatriate the proceeds from selling my Moroccan property?

Yes, provided you can demonstrate that the original purchase funds were brought into Morocco through official banking channels. The foreign exchange import certificate (attestation d’importation de devises) issued when you transferred funds into Morocco is the essential document for repatriating sale proceeds — keep it in a safe place for the entire duration of your ownership. Any capital gains tax due must be settled before funds can be transferred abroad. Consult the Bank Al-Maghrib or your Moroccan bank for the current procedures.

Is there inheritance tax on property in Morocco?

Morocco does not impose a standalone inheritance tax. For Muslims, property succession is governed by Islamic inheritance law under the Moudawwana. Registration fees apply when heirs formally register the transfer of title. Non-Muslim foreign heirs should obtain specialist legal advice, given the potential complexity arising from the interaction between Moroccan succession law and their own national law. Some of Morocco’s double taxation treaties also address estate-related matters.

Are there any extra taxes or surcharges if I am a foreign national buying property in Morocco?

Morocco applies the same purchase tax rates to residents, foreign nationals, and companies at the point of acquisition; registration fees, notary costs, stamp duty, and VAT are identical regardless of buyer nationality or residency status. There are no foreign buyer surcharges at the point of purchase, though non-residents face more restricted access to capital gains tax relief on eventual sale. Always confirm the current position with the DGI or a locally qualified adviser before proceeding.