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Buying Property in Morocco - Property Buyers’ Guide

To assist you in forming a decision about buying property in Morocco our investment guide will make you aware of all you need to expect.

The most important factor is to work with an established agent, like ourselves, who can guide you through each step of the process and help help you avoid any pitfalls.

1. Making an Offer. When you have decided on a property to buy in Morocco you will need to make a verbal offer through the agent which will need to be accepted by the vendor. Once an agreement on price is achieved, sale negotiations will proceed.
   
   At this stage a lawyer should be appointed by you to formalise the agreement. With the property being off-plan there is often little or no room for negotiation at this stage as the price is normally fixed, dependant upon the current phase of construction.
2. Appointing a Lawyer. It is wise to appoint a lawyer who is fluent in your language so that you properly understand all the legalities and exactly what is happening. Our agents will gladly recommend you a good solicitor who will carry out all the necessary checks on the property and complete the legal requirements of the sale.
3. The Purchase. The purchase of a property in Morocco is a standard procedure, similar to anywhere on the European Continent. The buyer will open a Euro account with a bank in Morocco and transfer Sterling or Euros to this account. The Euros will then be converted into Dirhams when paying funds to the vendor.

Buying Property in Morocco: Standard Procedures

Reservation Fee - This is required immediately to reserve the unit(s) and freeze the price. The required reservation fee depends on the unit you choose, the developer and the development, but typically is around € 3,000.

Deposit - After 30 days, 30% of the cost of the property is due. This acts as a deposit and is all you are required to pay until completion of the property. 30% is common however various developers and developments require different deposit payment percentages. They may also require interim payments throughout the construction process.

You will need to ensure you fully understand exactly what payment structure is in place before committing to buying a property in Morocco. See also our Morocco Property Due Diligence page.

Completion - Upon completion, the remaining 70% is payable. Some buyers will look to finance this sum with a mortgage. The balance of 70% may vary depending on the specific payment structure adopted for your development.

Additional Costs - Property buyers in Morocco should expect to pay around 6.5% of the property price. This amount is generated from lawyer fees, notary costs, registration etc. Land sales are subject to a charge of 1% to cover the notaries' fees.

Mortgages

There are built in mortgages in place for investors in Moroccan property. It is possible when purchasing a Moroccan property to borrow upto 70% of the value of the Moroccan property for a duration of upto 15 years from a Moroccan bank. The interest rate (Feb 06) is at 5.5%.

Tax Liability

Understanding your Moroccan tax responsibilities is essential when looking to purchase a property in Morocco.

Visit our Morocco Property Tax section to find out more.

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