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Costs over and above purchase price.
Costs to be paid by the purchaser of a property in Morocco over and above the purchase price.
If the property is for residential use for a period of at least three years, or if it is a development plot with a commitment to build within a period of seven years, the following taxes and impositions will apply, including TVA (Value added Tax):
- Registration Fee: 2.5%
- Notary’s Tax: 0.5%
- Land Registry Fees MAD 150 for the certificate plus 1%
- Notaries fees 1%
- Land Registry Fees 0.5 % plus MAD 75
- Sundry Expenses 2,000- 5,000 MAD
Prospective purchasers therefore should budget for 6% over and above the actual purchase cost of the property.
In addition in most cases part or all of the agent’s fees are payable by the purchaser. Budget between 3% and 5% to cover our fees, we will advise you in each case exactly what fee, if any will be payable.
After purchase there is a Property Tax (Taxe Urbaine) from which the purchaser is exempt for the first five years. After that it is paid annually based on the rental value of the property. This varies between 0% and 30% depending on the value of the estimated rental, and is subject to a 75% discount if the property is your permanent or holiday home.
Capital Gains Tax on Resale is calculated at 20% of the profit with a minimum of 3% of the sale price. Sellers are exonerated from this tax if they have owned the property for more than ten years or if the property is owned for less than ten but more than five years it is reduced to 10% of any profit over MAD 1,000,000.
When purchasing a property although the seller will use his own Notaire (Notary) we always recommend employing one to act for you directly and are of course happy to recommend one who will speak your language.
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