Nadia Sadak,  Friday, 1 November 2013

 

This article is part of a series of 8 articles about buying property in Morocco. The other articles in the series cover the following topics:

Property Buying Guide
Finding the Right Location
Role of the Real Estate Agent
Buying Process
Documents and Contracts
Property Taxes
Mortgages

The costs to buy or sell a house in Morocco

Morocco is a beautiful area that saw its economy fall and then rise incredibly well in the recent years. Purchasing a house in Morocco is a dream that many have, especially after the government had campaigns to increase the number of new residents in the country. If you would like to purchase a property in Morocco you will certainly spend some nice time choosing the right one for you and for your family (since there are so many wonderful options available for everyone!). From huge spacious mansion like properties, to nice apartments or even a house in the middle of an empty land, in Morocco you will have the opportunity to find a little bit of everything.

Of course buying a house is not just a bed of roses: You need to have money to pay the house off and also to pay the fees and values that must be paid whenever a buying/ selling transaction is to be completed. In fact the costs are rather moderated in Morocco, which means you will have to spend some money and not too much money in the whole process. It is important to have a good notion of values before you actually do business, that way you will not feel harmed once the whole process is finished. It is also important to pay attention whether you are going to buy a property that comes with only a title or not. If your property only comes with a title you will be expected to spend some extra money with the notary services since he will have to write your name as a new entry on the property’s title.

The Average Spending in Percentage (%)

When buying or selling a property in Morocco the average amount of money paid on fees, taxes and other service fees is around 12% of the total value of the Property. It is important to remember to have extra money in the bank if you are buying, since most fees are paid by the buyer. In fact one of the only things that have to be paid by both parties is the value spent with the real estate agent’s fees. Apart from that the seller would only have to pay older taxes that he still did not in order to be able to sell the house effectively. Otherwise the seller would only have to deal with smaller expenses.

An Overview of all property transaction costs

The costs when purchasing a property in Morocco slightly vary from region to region. It is also important to notice that additional fees may also apply!

Here are some of the main costs that one will have to pay once buying/ selling a property in the country.

Real Estate Agent’s Fee
Usually 2.5% of the total value of the property. The value is shared between buyer and seller.
Registration Values
Usually 2.5% of the total value of the property. The value is fully paid by the buyer.
Legal Duties
The value ranges from 1% to 5% of the total value of the property. The value is paid entirely by the buyer. Here 10% of the total value of the property must be paid as the VAT taxation.
Notary Fee and Stamp Duty
The value here ranges from 1% to 1.5% of the property’s total value. These fees must be paid entirely by the buyer.
Land Registry Fee
This fee must be paid by the buyer as well. The value is around 1% of the property’s total value.
Notary Tax
This value here is the notary’s payments itself. The notary is responsible for several different things during the whole process therefore he is also eligible for monetary compensation. The buyer will have to pay 0.5% of the total value of the property to compensate the efforts of the notary.
Fees with Lawyers
It is impossible to say how much you will spend exactly. Lawyers usually charge per service and not a value based on the total value of the property.
Other Fees
It is important to remember that if you are going to purchase a property that only has a title. You will have extra expenses with the notary servicing for example.

Total costs paid by BUYER = The value ranges from region to region, however the seller will pay fees that range around 9% to 14% of the total value of the property.

Total costs paid by SELLER = The seller on the other hand will have to pay almost 0 fees if compared to the buyer.

Although these values seem to be big it is important to remember that the costs in Morocco are quite average and in other places in the world people would pay almost the same. Morocco is therefore a great option for those who would like to get their new home in an exotic place. In fact over the last few years several people from all over the world came to the country to start their new lives there. The country is under development and every single year things get better and better. Foreigners and residents have more and more opportunities to increase their life quality and lead a much nicer and healthier life there. Therefore if you are interested in purchasing a home in the country, go ahead; the tips above will help you get started today!