Buying Property in Morocco: What Every Foreign Buyer Should Know

1. Why Morocco is on every investor's radar

Three hours from London, four from New York via Casablanca, and with year-round sunshine that would make southern Spain jealous. Morocco has quietly become one of the most compelling property markets in the Mediterranean region. But unlike the oversaturated markets of Portugal or Turkey, Morocco still offers genuine value.

The numbers tell part of the story. Property prices in cities like Tangier or Agadir run at a fraction of comparable Mediterranean destinations. A two-bedroom apartment with ocean views in Tangier can still be found for under $100,000. A restored riad in Marrakech's medina, the kind of property that graces magazine covers, starts at around $150,000. Try finding anything remotely similar in Lisbon, Barcelona, or Istanbul at those prices.

But the real story is the trajectory. Morocco has invested heavily in infrastructure over the past decade. The Tangier Med port is now the largest in Africa and the Mediterranean. The Al Boraq high-speed train connects Tangier to Casablanca in just over two hours. Six international airports handle direct flights from most European capitals. This infrastructure push is creating economic growth that translates directly into property demand.

The rental market adds another dimension. Marrakech alone attracts over 3 million tourists annually, and platforms like Airbnb and Booking.com have made it straightforward for property owners to tap into that demand. Gross rental yields of 7-10% are achievable in the right locations, significantly above what most European markets offer.

2. The legal framework for foreign buyers

The first question most foreign buyers ask is simple: can I actually buy property in Morocco? The answer is yes, with one significant caveat. Foreigners can purchase urban, residential, and commercial property without restriction. The exception is agricultural land, which has been off-limits to non-Moroccans since 1963. This isn't a technicality. It's strictly enforced, and workarounds (like setting up a Moroccan company to hold the land) carry real legal risk.

You don't need a residency permit to buy. You don't need to be married to a Moroccan citizen. You don't even need to visit the country in person, though you'd be unwise not to. What you do need is to understand the two types of property title that exist in Morocco, because this single detail has caused more problems for foreign buyers than any other aspect of the process.

The titre foncier is a registered title held at the Conservation Foncière (land registry). It provides clear, legally enforceable proof of ownership. The melkia, by contrast, is a traditional title based on witness testimony and recorded by adouls (traditional notaries). While melkia titles are legally valid, they're far harder to verify and defend. Foreign buyers should only purchase properties with a titre foncier. Full stop. If a property you're interested in doesn't have one, either walk away or factor in the time and cost of obtaining one before completing the purchase.

One more critical requirement: all funds used for the purchase must enter Morocco through official banking channels. The Office des Changes (exchange control authority) requires this for a very practical reason. Without documented proof that your purchase funds came from abroad, you won't be able to repatriate the proceeds when you sell. Wire transfers through your bank are the standard method. Keep every receipt.

3. The buying process explained

Once you've found a property, the transaction follows a well-established sequence. It starts with a compromis de vente (preliminary sale agreement), which is essentially a binding contract between buyer and seller. You'll put down a deposit, typically 10% of the purchase price, which is held by the notary. If you pull out without a valid contractual reason, you forfeit the deposit. If the seller backs out, they owe you double.

The notary then conducts due diligence. This includes verifying the title at the land registry, checking for encumbrances (mortgages, liens, disputes), confirming the seller's identity and legal right to sell, and ensuring the property complies with local planning regulations. This phase typically takes four to eight weeks. Don't rush it. A thorough notary is your best insurance policy.

When everything checks out, both parties sign the acte de vente (final deed of sale) at the notary's office. The notary handles tax payments, registration with the land registry, and the formal transfer of title. You'll receive your updated titre foncier a few weeks later, and the property is officially yours.

A word about notaries: unlike in common-law countries where you'd hire a solicitor to represent your interests, the Moroccan notary acts for both parties. They're neutral by law. If you want someone specifically looking out for your interests, hire an independent lawyer in addition to the notary. For purchases above 2,000,000 MAD (roughly $200,000), this is money very well spent.

4. Best cities to buy in

Morocco's property market is anything but homogeneous. Each city has its own dynamics, buyer profile, and risk-reward ratio. Here's an honest comparison based on current market conditions.

Marrakech is the obvious choice for anyone targeting the tourist rental market. The city draws visitors year-round, and a well-located riad or villa with a pool can generate serious income. The downside is competition (there are a lot of properties chasing the same guests) and an increasingly tough regulatory environment for short-term rentals. Browse apartments for sale in Marrakech to get a sense of current pricing.

Tangier is where the smart money is going right now. The city's transformation over the past decade has been dramatic: new infrastructure, a booming port economy, and a cultural renaissance that's drawing a younger, international crowd. Property prices haven't caught up with the fundamentals yet, which creates a window of opportunity. See what's available among apartments for sale in Tangier.

Casablanca is the safe bet. It's Morocco's economic capital, home to the stock exchange, the largest banks, and most multinational offices. The rental market here is driven by professionals and corporate tenants rather than tourists, which means more stable (if lower) yields. The Corniche and Anfa neighborhoods command premium prices, while emerging areas like Dar Bouazza offer better value.

5. The real costs of buying

The sticker price is only part of the equation. Transaction costs in Morocco run between 7% and 10% of the purchase price. Here's what you're actually paying.

On a property priced at 1,000,000 MAD (approximately $93,000), you'll pay somewhere between $6,500 and $9,300 in additional costs. These are all buyer costs. The seller typically only pays the agency commission, and even that is often passed to the buyer. Budget accordingly and don't let the low property prices lull you into ignoring the transaction overhead.

6. Taxes and ongoing obligations

Property ownership in Morocco comes with annual tax obligations. The taxe d'habitation is based on the rental value of the property and is payable by the occupant (owner or tenant). The taxe de services communaux is a municipal services tax of approximately 10.5% of the assessed rental value. Together, these typically amount to a few hundred to a few thousand dirhams per year, depending on the property.

Rental income is subject to Moroccan income tax. The progressive rates range from 0% on the first 30,000 MAD to 38% on income above 180,000 MAD. A standard 40% deduction is applied to gross rental income before tax. So if you earn 100,000 MAD in rent, you're taxed on 60,000 MAD.

Capital gains tax on resale is 20% of the profit, with a floor of 3% of the sale price. Properties held for more than six years benefit from a 5% annual reduction in taxable gain starting from the third year. Hold for twelve years and you'll have halved your tax liability. This makes Morocco a better market for patient investors than for flippers.

7. Getting a mortgage as a foreigner

Moroccan banks do lend to foreigners, though the terms are less favorable than what residents enjoy. The main lenders (Attijariwafa Bank, BMCE Bank of Africa, Banque Populaire, and CIH Bank) all have products for non-resident buyers. Interest rates currently sit between 4.5% and 6.5%, depending on the bank and your profile.

Expect to put down at least 30% as a non-resident. Maximum loan terms are typically 20 to 25 years, and the bank will want extensive documentation: proof of income for the past two to three years, bank statements, tax returns from your home country, employment contracts, and the preliminary sale agreement. The approval process takes four to six weeks on average.

Many foreign buyers skip the local mortgage entirely and pay cash, using savings or equity released from property in their home country. Given the relatively low property prices in Morocco compared to Western markets, this is often the simplest approach. A $100,000 villa in Agadir is within cash reach for many buyers who'd need a mortgage for the equivalent purchase in London or Paris.

8. Mistakes that cost people money

The biggest mistake foreign buyers make in Morocco is purchasing property without a clean titre foncier. It bears repeating because the consequences are severe. Properties with only melkia title can have unresolved inheritance claims, disputed boundaries, or competing ownership assertions. Sorting these out after purchase is expensive, time-consuming, and sometimes impossible.

The second most costly error is under-declaring the purchase price. Some sellers propose declaring a lower price in the deed to reduce registration taxes. This might save you a few thousand dirhams today, but it creates a much larger problem when you sell: your capital gains tax will be calculated on the difference between the (low) declared purchase price and the (full) sale price. You'll also have difficulty proving your actual investment if you need to repatriate funds.

Third: buying off-plan from an unvetted developer. Morocco's VEFA (sale in future state of completion) law provides some protection, but construction delays, specification changes, and outright developer defaults still happen. Before committing to a VEFA purchase, visit the developer's completed projects, talk to residents, and check whether the project has all necessary permits. Pay according to the legally mandated schedule, never ahead of it.

Finally, don't underestimate renovation costs and timelines. That beautiful riad in the medina that "just needs a bit of work" will invariably cost twice what you budget and take three times as long. Moroccan construction labor is affordable, but managing a renovation project from abroad without reliable local oversight is a recipe for frustration. If renovation is part of your plan, hire a local project manager with verifiable references and build in a contingency of at least 25% over the quoted cost. Start your search for houses for sale in Essaouira to see what the market looks like today.