Taxes when buying a home in Morocco
Before buying a property in Morocco it is essential to understand the taxes and costs involved. This guide breaks down every expense so you can calculate your real budget with no surprises.
1. Property registration fees
The main cost is registration at the land registry. It represents roughly 4% to 6% of the purchase price and includes registration duties, stamp duty and entry in the land register.
2. Notary fees
A notary is mandatory for property sales in Morocco. Their fees range from 0.5% to 1% of the price, depending on the complexity of the transaction and the location.
3. VAT on home purchases
VAT does not apply to sales between private individuals. It only applies when you buy from a developer or construction company (new-build homes), at a rate of 20% of the sale price.
4. Municipal capital gains and annual taxes
When selling, the seller pays capital gains tax. As a buyer, you will pay the annual local property taxes (taxe d'habitation/taxe professionnelle), which vary by city and property size.
5. Summary: how much you really need
For a purchase of 1,000,000 MAD, budget an additional 40,000 to 70,000 MAD in taxes and fees. For new builds, add 20% VAT. Always allow an extra 8% on top of the purchase price.
Frequently asked questions
How much tax do you pay when buying a house in Morocco?+
Between 4% and 8% of the purchase price, depending on whether you buy from a private individual or a developer. The main costs are registration (4-6%), notary fees (0.5-1%) and, where applicable, VAT (20%).
Do foreigners pay more tax than Moroccans?+
No. The tax regime is the same for nationals and foreigners. The only practical difference is that a foreign buyer may need additional translation and administrative services.
Can I deduct anything on my income tax return?+
It depends on your country of tax residence. Some countries allow you to deduct taxes paid in Morocco under double taxation treaties. Check with a local tax adviser.
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