Country Guides Country Guide: Morocco

Date Published:

10/06/2009

Purchase Process

There are no restrictions to foreign citizens owning property in Morocco except on land designated as agricultural.

Morocco has partly adopted the French civil legal code but also operates the Arabic Sharia law that has implications in areas such as inheritance tax. Title deeds to both property and land should be obtained. Don’t buy if they are not forthcoming, for example on older properties. Ensure, via your lawyer, that the change of ownership is registered with the Cadastre (Land Registry).

No system for formal surveys exists in Morocco though the service is available. It is always advisable to get a qualified surveyor or builder to look over older buildings. Written planning permission is required for restoration work on houses in the medina. As you would in the UK, apply before you commence work.

Generally, a 10 per cent (sometimes 20 per cent) deposit is payable on the signing of the Compromis de Vente, a binding contract of sale. Always engage the services of an independent English-speaking solicitor. See the Law Society website at for a list of international solicitors.

Purchase Costs

Based on a buying a £100,000 new property you should budget 6 per cent and expect to pay the following:

Property Tax (Taxe d’habitation)

Property tax is assessed on the rental value of the property. The general property tax rate is 10 per cent of the assessed rental value, as determined by the local tax authorities. If the property is used as a primary residence, only 25 per cent of the assessed rental property value is subject to tax. New buildings are exempted from the tax for a five year period following completion.

Exit Costs

In Morocco, capital gains tax (CGT) is charged at 20 per cent on the profit (selling price less the purchase price) with a minimum of 3 per cent of the selling price if the property is sold within five years. If the property is sold after five years and before 10 years’ ownership, CGT is charged at 10 per cent; and 0 per cent after 10 years.

Mortgage Status

Mortgages are available in Morocco for foreigners. Generally, buyers can borrow up to 70 per cent on a variable rate to be repaid over 12-25 years.