Buying Property in Morocco - A guide to real estate Investment in Morocco
Morocco Country Guide - Taxes and Fees
The following are costs you should include on top of the purchase price when buying property in Morocco
Rabat Morocco
Lawyers/Solicitor’s Fee:
Although it is not compulsory to engage a solicitor, if you are not familiar with the procedure you can appoint your own solicitor. Typical costs are around £500-£1000.($1,000-$2,000)
Notary Fee:
1.0% of the property value plus VAT at 7%
Notary tax:
0.5% of the purchase price.
Land Registry certificate:
When registering a newly constructed residential dwelling for the first time, the owner is required to pay a fee based on the reference value of the property set by the local government. Currently this is 1.0% of the declared value of the property plus 150Dh for the title deed certificate.
Registration fee:
Currently set at 2.5% of the declared property value.
Sundry expenses:
In the case of new properties requiring the creation of a new title deed, 1500-3000 Dh depending on the land area and value.
Agents fees:
Part or all of the agents fees are paid by the purchaser, budget between 3 and 5%.
Real Estate taxes:
There are three types of tax payable in Morocco once property is purchased:
i) Municipal Property Tax:
Owners have full exemption from this tax for the first five years of ownership. After five years, the tax is based on 13.5% of the estimated rental income of the property. There is a 75% reduction if the property is your main residence or holiday home.
ii) Rental Income Tax:
Owners are exempt from this tax for the first three years of ownership and properties within the city limits of Tangiers enjoy a further 50% reduction in rates. When the property is rented out, the rental income must be declared and taxed as part of income tax and falls into the following tax brackets:
Annual Income: Tax bracket:
• 1 – 20,000 Dhs Exempt
• 20,001 – 24,000 Dhs 13% with a reduction of 2,600 Dhs
• 24,001 – 36,000 Dhs 21% with a reduction of 4,520 Dhs
• 36,000 - 60,000 Dhs 35% with a reduction of 9,560 Dhs
• 60,000 Dhs + 44% with a reduction of 14,960 Dhs
iii) Refuse collection tax:
Once again, owners have full exemption from this tax for the first five years of ownership. Thereafter, the tax is levied at 10% of the property rental value.
