Notary fees and registration duties when buying property in Morocco

Total fees represent approximately 7 to 8% of the purchase price. They include registration fees (4%), land registration tax (1.5%), notary fees (around 1%) and various administrative costs. For a property at 1,000,000 MAD, budget around 70,000 to 80,000 MAD in additional fees.

Registration fees are set at 4% of the declared sale price for built properties and land. This rate applies to the market value of the property. A reduced rate of 3% exists for social housing (price below 250,000 MAD). These fees are collected by the notary and paid to the General Tax Directorate.

The land registration tax is collected by the National Agency for Land Registry (ANCFCC) to register the title deed in the buyer's name. It amounts to 1.5% of the acquisition price. For a property at 800,000 MAD, this tax represents 12,000 MAD. It is mandatory for any titled (registered) property.

MRE do not benefit from any specific exemptions on registration fees or land registration tax. However, they can purchase in foreign currency via an MDM account (Foreign Exchange Market for MRE), which allows them to repatriate proceeds from a future resale. No additional customs duties or taxes apply due to MRE status.

Notary fees in Morocco are regulated by decree and not freely negotiable. They are calculated on a sliding scale: approximately 1% for amounts up to 1 million MAD, with reduced rates beyond. Fixed emoluments are added for document drafting. For a purchase at 1,500,000 MAD, notary fees amount to approximately 12,000 to 15,000 MAD before tax.

The municipal services tax (formerly urban tax) is an annual tax separate from purchase fees. It is owed by the owner each year, calculated on the rental value of the property (between 10% and 13.5% of annual rental value). It is not included in notary fees. For an apartment with an annual rental value of 40,000 MAD, the tax amounts to approximately 4,000 to 5,400 MAD/year.

No, a notary is mandatory for any purchase of a titled property (registered in the land registry) in Morocco. Signing an authenticated deed before a notary is a legal requirement for property transfer. Without a notarial deed, the transaction is not enforceable against third parties and the buyer cannot be registered as owner on the title deed.