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Property Law in Morocco

Purchase Costs in Morocco

You should budget for about 5-6% over the purchase price to cover:

Stampduty

2.5%

Legal fees

1.1%

Notary fees

0.5%

Land registry

1.5% to 2%

Dispatch fees

approx 500Dh (£20)

Misc (certificates)

approx 500Dh (£20)

In addition in most cases part or all of the agent’s fees are payable by the purchaser. Budget between 2% and 3.5% to cover our fees, we will advise you in each case exactly what fee, if any will be payable.

Tax on rental income

Owners are tax-exempt for the first five years of ownership.

Capital Gains Tax

Capital Gains Tax (TPI) is charged at 20% of the profit with a minimum of 3% of the sale price if the property is sold within 5 years. If you sell your property after ten years of ownership, you are fully exempt of TPI. If you sell your property after five years but within ten years, you are subject to TPI of 10% of any capital gain over 1 million MAD (approx. £61,000).

There is a double tax treaty between the UK and Morocco to ensure that Capital Gains Tax is not paid in both countries.

Inheritance Tax

There is 0% inheritance tax for family members. We advise you to seek professional tax advice as individual circumstances and company purchases of property can alter your tax liabilities.


Repatriation of funds & profits

Foreign individuals, whether resident or non-resident in Morocco , will benefit from a convertibility system that guarantees their complete freedom to:

  • Transfer revenue net of tax without any limitation in amount or time
  • Transfer the proceeds of transfer or partial or total disposal of the investment, including profits

For any questions or queries, please fill in Contact Us form.

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