Morocco: Purchase Process

Buying a new build property in Morocco is straightforward and similar to European countries:

• Although you do not legally require a solicitor in order to buy a Moroccan property, it is highly recommended, as the notaire will not provide you with independent legal advice.
• Firstly, a reservation contract must be signed.
• Title deeds, signed at the local notary, are handed over on completion and full payment.
• One issue to be aware of is that the country is a relatively new market and as such does not have bank guarantees, so choosing the right developer with a good track record is key.

Costs of a standard property purchase in Morocco include the following:

• Legal fees range from 1% to 3% of the purchase price and are paid by the buyer.
• Estate agents fees of 2% to 2.75% are paid by the seller.
• Taxes on completion come to around 5% of the purchase price. This includes stamp duty, 2.5 per cent registration tax and 0.5 per cent Notary tax.
• Capital gains tax is 20% on profits over €60,000.
• After five years, capital gains tax reduces to 10% and after ten years it reduces to zero.
• If you are planning on renting out your property once it's completed there is no rental tax for five years.
• There is no inheritance tax if you leave your property to a family member.