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Real estate acquisition costs in Morocco: what you need to know

Investing in Moroccan real estate involves acquisition costs that are essential to include in your profitability calculation. These costs are added to the purchase price and reduce cash-on-cash yield if ignored. Here are the main items.

Registration duty (4%)

The registration duty (droit d'enregistrement) is due when the deed is registered with the authorities. It is generally calculated on the declared sale price and amounts to 4% for built properties and urban land. This rate is set by Moroccan regulations and must be included when estimating total acquisition cost.

Land registry (1.5%)

The land registry (Conservation foncière) covers registration or transfer fees for the property in the land register. It is typically around 1.5% of the property value. This step is essential to secure your title and make the legal status of the property enforceable against third parties. Ignoring it would distort the total amount to be paid at purchase.

Notary fees (about 1% + VAT)

Notary (or adoul) fees are usually calculated on the property price. In practice, about 1% of the price is often used, plus VAT (20%), i.e. about 1.2% in total. These fees cover drafting and authentication of the deed and related formalities.

Adding registration duty (4%), land registry (1.5%) and notary fees (about 1.2%) gives a total of about 6.7% to 7% of the purchase price. That is why our calculator uses a default rate of 7% for acquisition costs: it gives a realistic estimate of the equity to invest and thus of ROI. You can adjust this percentage to refine the calculation for your situation (property type, region, notary negotiation, etc.).

Real example: rental investment in Casablanca

Take a 1.2 million MAD apartment in the Maarif district of Casablanca. With a 240,000 MAD down payment (20%), a 960,000 MAD loan at 4.5% over 20 years (monthly payment of about 6,070 MAD) and rent of 9,500 MAD per month, about 630 MAD per month is left after 2,800 MAD of expenses (building fees, maintenance, municipal services tax, vacancy provision), or close to 7,500 MAD of net cash flow per year. Acquisition costs (7% = 84,000 MAD) bring the equity invested to 324,000 MAD. The cash-on-cash ROI is therefore about 2.3%, a common level for a property financed at 80% in the economic capital, where the return comes mostly from stable rental demand and the gradual repayment of the loan principal.

Airbnb profitability in Marrakech: seasonal potential

Marrakech has a different profile because of its tourist market. Take an 800,000 MAD riad in the medina, let on Airbnb at 600 MAD per night with 65% occupancy (peaks in spring, autumn and during festivals): estimated monthly revenue reaches about 11,700 MAD. Expenses are much higher than for a long-term let: concierge service (about 20% of revenue), cleaning and linen, water, electricity, internet, maintenance and taxes, around 4,800 MAD per month in total. With a 640,000 MAD loan at 4.5% over 20 years (monthly payment of about 4,050 MAD), net cash flow is about 2,850 MAD per month, close to 34,000 MAD per year. The equity invested (160,000 MAD down payment + 56,000 MAD of fees) is 216,000 MAD, which gives a cash-on-cash ROI of close to 16%. Keep in mind that this result depends heavily on seasonality, active management and compliance with local tourist-rental rules.

Tangier: professional and rental growth

Tangier benefits from the expansion of the Tanger-Med port and the nearby industrial zones. A 900,000 MAD apartment in a recent residential district can be let for 7,200 MAD per month long-term. With a 180,000 MAD down payment and a 720,000 MAD loan at 4.5% over 20 years, the monthly payment is about 4,555 MAD. After 1,400 MAD of monthly expenses, net cash flow is about 1,245 MAD per month, close to 14,900 MAD per year. The equity invested (180,000 MAD down payment + 63,000 MAD of fees) totals 243,000 MAD, for a cash-on-cash ROI of about 6.1%. Tangier offers a good balance between yield and stability, with rental demand driven by professionals and families drawn by the region's economic growth.

Frequently asked questions

How do you calculate real estate ROI in Morocco?

Real estate ROI (return on investment) in Morocco is calculated by dividing annual net cash flow by the amount of equity invested (down payment + acquisition costs + renovation), then multiplying by 100. Acquisition costs include registration duty (4%), land registry (1.5%) and notary fees (about 1.2% with VAT). Annual net flow is rental income minus mortgage payments and expenses (syndic, maintenance, tax).

What is the difference between long-term rental and Airbnb in Morocco?

For long-term rental, monthly rent is fixed and the profitability calculation uses that rent directly. For Airbnb, estimated monthly revenue is nightly rate × 30 × occupancy rate. Airbnb yield can be higher but involves more management and vacancy; this calculator lets you compare both based on your parameters.

What are the acquisition costs for property in Morocco?

Main costs are: registration duty (4% of price), land registry (1.5%) and notary fees (about 1% + VAT, i.e. 1.2%). In total, plan for about 7% of the purchase price in acquisition costs. Our calculator uses 7% by default but you can adjust this percentage.

Sources and references (fees and rates)

To verify percentages and assumptions used in this simulator, check these references:

• Moroccan Tax Administration (official)
• ANCFCC / Land registry (official)
• Acquisition fees guide
• Mortgage payment guide