Understanding Property Acquisition Costs
Buying real estate in Morocco — whether an apartment, riad, villa, or plot of land — involves much more than the listed price. In addition to the amount agreed upon with the seller, the buyer must plan for a range of mandatory fees: registration duties, notary fees, land registry charges, administrative stamps, taxes, and, in most cases, the agency commission. In practice, these acquisition costs represent between 8% and 9% of the purchase price, and sometimes more depending on the type of property or the financing method.
At Atlasimmobilier, we place great importance on transparency regarding these costs, ensuring that our clients have a clear and realistic understanding of their overall budget before making any commitment.
The legal framework governing these costs is defined by the Moroccan General Tax Code, Decree No. 2-16-375 of November 1, 2016 on notarial fees, and the Ministerial Order issued by the Ministry of Finance setting the tariffs of the Land Registry (Conservation Foncière).
Let’s take a concrete example: the purchase of a residential apartment for a price of 1,000,000 Moroccan dirhams.
The standard regime applicable to most property purchases
Registration duties: 4%
Registration duties represent the main component of acquisition costs. They amount to 4% of the price for any built property intended for residential or professional use — that is, 40,000 MAD in our example.
These duties are paid to the Moroccan Tax Administration (Direction Générale des Impôts) at the time the sale deed is registered.
Land registry fees: 1.5%
These fees cover the registration and publication of the property under the buyer’s name in the Land Registry.
They amount to 1.5% of the purchase price, or 15,000 MAD, plus a few hundred dirhams for certificates, extracts, and administrative stamps.
Notary fees: 0.75% to 1% + VAT
Notary fees are regulated by a progressive scale with an upper limit. For a property valued at one million dirhams, they range between 0.75% and 1%, plus 10% VAT.
This brings the total notary fees to an estimated 11,000 MAD including tax.
Miscellaneous and administrative costs
These costs include document legalization, certified copies, cadastral extracts, and administrative certificates, for an average total of around 2,000 MAD.
Real estate agency commission
The common practice is 2.5% before tax, or 3% including VAT, paid by the buyer.
For a property priced at 1,000,000 MAD, this amounts to 30,000 MAD including tax.
Practical example for a 1,000,000 MAD property purchase
| Cost item | Base | Rate | Estimated amount (MAD) |
|---|---|---|---|
| Registration duties | 1 000 000 | 4 % | 40 000 |
| Land registry fees | 1 000 000 | 1,5 % | 15 000 |
| Notary fees + VAT | 1 000 000 | 1,1 % | 11 000 |
| Miscellaneous costs | — | — | 2 000 |
| Real estate agency | 1 000 000 | 3% including VAT | 30 000 |
| Total estimated | ≈ 98 000 DH |
The total cost of this acquisition therefore amounts to approximately 9.8% of the purchase price.
Specific regimes and exceptions
Social and low-income housing
For social housing units (priced up to 250,000 MAD excluding VAT, with an area between 50 and 80 m²), the registration rate is reduced to 3%.
Partial exemptions may also apply to certain new affordable housing projects, subject to residency conditions.
Vacant land or properties to be demolished
Vacant land or properties considered as such are subject to a 5% registration rate, which often brings total acquisition costs to around 10–11% of the purchase price.
Purchase with mortgage financing
The fees related to the mortgage registration and the loan deed amount to approximately 1% of the borrowed amount.
For example, on a 700,000 MAD loan, this represents an additional 7,000 MAD.
Preliminary sale agreement costs
The amounts mentioned above refer only to the final sale deed.
However, most transactions in Morocco begin with a preliminary sale agreement (promesse synallagmatique), drafted by a notary or a licensed real estate professional.
Preliminary agreement costs
- Drafting fees: between 0.5% and 1% of the sale price, or a flat fee ranging from 3,000 to 6,000 MAD, depending on the complexity.
- Deposit: usually 5 to 10% of the sale price, held in escrow until the final signature.
- Verification costs: property certificate, land request, tax checks, etc., amounting to 1,000 to 2,000 MAD.
These costs are not included in the 8 to 9% overall acquisition cost, but they represent an essential and secure step in the purchasing process.
Legal references
- Moroccan General Tax Code (2025 Edition) – Articles related to registration and stamp duties.
- Decree No. 2-16-375 of November 1, 2016.
- Ministerial Order No. 364-08 – Concerning the fees of the Land Registry (Conservation Foncière).
- Tax Administration Circular No. 717/2018 – Concerning specific registration duty rates.
Atlasimmobilier advice
- Always include acquisition costs in your overall budget from the negotiation stage.
- Request a detailed notary quotation as soon as the preliminary agreement is signed.
- Verify the nature of the property (land, building, or social housing) to apply the correct rate.
- Keep all official receipts to justify your acquisition in case of resale.
- Plan for the preliminary agreement fees, which are added to the cost of the final sale deed.
In conclusion
In Morocco, the actual acquisition costs of a property average between 8% and 9% of the purchase price, excluding preliminary agreement fees and financing costs.
For a property priced at 1,000,000 MAD, the total cost amounts to approximately 1,090,000 MAD, all expenses included.
Established in 1999, Atlasimmobilier supports each client through every stage of the process — from the initial promise to the final signature — ensuring transparency, legal security, and full cost control.
Our goal is to provide a smooth, well-managed buying experience under the best possible conditions.
