Real estate registration duties in Morocco — the case-by-case guide (housing, land, gift, lease)

1. The registration formality: who assesses, who pays, on what base

Registration duties are assessed and collected by the tax authority at the time the deed is registered. For a sale, they are legally borne by the buyer, unless the parties agree otherwise — unlike the TPI (capital gains tax), which falls on the seller.

The taxable base is the price stated in the deed, or the market value of the property if the latter is higher — a decisive point we return to below. A minimum levy of 1,000 MAD applies. In practice, you settle nothing directly at the counter: the notary calls the provision (registration duties, land registry, fees) before signing and completes the formality on behalf of the parties.

2. Case no. 1 — Buying a built home: 4%

The reference rate for a built property used as housing is 4% of the sale price. But registration is only one line of the acquisition budget: you must add the transfer duty at the land registry (1.5%) for registered properties, and the notary's fees — generally around 1 to 1.5% of the deed value. In total, a fee budget of around 6.5% at most of the purchase price, to be confirmed with your notary depending on your deed.

• Social housing: reduced rate of 3% under conditions (area not exceeding 100 sq m, price capped according to the texts in force).
• Buying new (VEFA / off-plan): registration duties cumulate with the developer's VAT — two separate levies.
• Simulation: our acquisition-cost calculator includes registration, land registry and notary.

3. Case no. 2 — Land: 5%, and a value that is often debated

Undeveloped land — urban or rural land for building — is registered at the rate of 5%. It is also the category where the gap between the negotiated price and the tax authority's assessment is most frequent: the value of a piece of land depends on its zoning, its actual buildability and its potential, parameters that two observers may read very differently. Landlocked land, encumbered by an easement, or with uncertain buildability is not worth an equivalent piece of land free of constraints — provided the file demonstrates it when the authority examines the deed.

On the seller's side, recall that the disposal of land follows its own TPI regime, with allowances depending on the holding period.

4. Case no. 3 — Commercial premises, office, mixed use: 5%

Built properties used for commercial or mixed purposes — shops, offices, professional floors — fall under the 5% rate. For an investor, the one-point gap with residential adds up quickly: on an acquisition at 3,000,000 MAD, that is 150,000 MAD of registration instead of 120,000 MAD. The qualification of use retained in the deed must therefore be consistent with the reality of the property and its allocation — it is the deed drafter who determines it in view of the documents, and it is pointless (and risky) to try to dress up professional premises as housing.

5. Case no. 4 — Direct-line gift: 1.5% on actual market value

Gifts between spouses, ascendants and descendants benefit from a reduced rate of 1.5% — the General Tax Code extends the benefit of the reduced rate to gifts between brothers and sisters. Outside the direct family line, rates are higher, aligned with gifts between third parties. The Hiba gift is traditionally received by adoular deed; the notarial deed is increasingly common, in particular for MREs who seek international enforceability.

Essential point: there is no price, so the base of the duties is the actual market value of the gifted property on the date of the deed. A declared value that is too low exposes you to a reassessment by the tax authority (DGI); a value that is too high means paying excessive duties. This is the textbook use case for an independent appraisal: setting an objective, documented value that serves as a defensible base.

6. Case no. 5 — Property exchange: 3%

The property exchange — two owners swapping their properties, with or without a balancing payment — is registered at the rate of 3%, calculated on the balancing payment or the higher value. The logic is the same as for the gift: without a market price established for each of the two properties, everything rests on the declared values. Two consistent appraisals, produced according to the same methodology and on the same date, avoid both the imbalance between co-exchangers and the tax authority's challenge.

7. Case no. 6 — The lease: a regime to check deed by deed

Leases do not escape the formality: a lease established by deed — commercial lease, long-term lease, lease with special clauses — may be subject to registration, according to rules that depend on the nature and duration of the lease. Unlike sales, there is no single reflex here: the exact regime (rate, base, deadline) is checked deed by deed with the drafter — notary or adoul — before signing, and the allocation of costs between landlord and tenant is settled contractually.

• Commercial lease (law 49-16): renewal rights, eviction indemnity, indexation clauses — the complexity justifies a specialised notary.
• Simple residential lease (law 67-12): the adoul remains competent, and practice is moving towards private agreement or notarial deed for high-end properties.
• Rental value: the stipulated rent then serves as a reference for other taxes (municipal services tax in particular) — a rent consistent with the market avoids later discussions.

8. The procedure, step by step: notary, adoul, land registry

• Step 1 — Signing the authentic deed. Notary (law 32-09) or adouls depending on the nature of the deed and the status of the property. The notary calls the full costs (registration, land registry, fees) before signing.
• Step 2 — Presenting the deed for the formality. The reference deadline found for deeds subject to registration is 30 days from the deed; your notary confirms the deadline applicable to your precise deed. Late registration exposes you to penalties.
• Step 3 — Assessment and collection. The tax authority assesses the duties in view of the deed (rate according to the nature of the operation, base price or market value) and collects them. The deed then bears the mention of its registration.
• Step 4 — Land publicity. For a registered property, the deed is published at the land registry (ANCFCC) — transfer duty of 1.5% — and the transfer becomes enforceable. Beware of the adoular circuit: the deed is registered in the approving judge's register, but its publication at the land registry requires an additional step that is not automatic.

9. The point that decides everything: declared price or market value?

Whatever the case — sale, land, gift, exchange — the control mechanism is the same: if the price or value expressed in the deed appear lower than the actual market value, the authority may carry out a reassessment and apply the duties on the corrected value, plus penalties. The same declared price is moreover scrutinised on both sides of the transaction: on the buyer's side for registration duties, on the seller's side for the TPI.

The remedy is not to "simply declare more": it is to be able to document the value retained. An independent appraisal report, produced by RICS-certified experts before signing, establishes the actual condition of the property, checks the areas, analyses comparables and sets out the methodology. If your price incorporates a justified discount (condition, easement, configuration, urgency), the report objectifies it; if it is in line with the market, it confirms it. This non-binding appraisal serves the negotiation and the documentation of the file handed to the notary or the adoul before the deed. Allow a report within 5 to 8 days (48-72h express), from 3,500 MAD excl. tax, quote within 24h.

10. FAQ

Note: The rates, thresholds and deadlines cited are given for guidance on the basis of the Moroccan General Tax Code and the texts in force; they may be amended by the annual finance acts, and the exact regime of each deed (leases in particular) is checked with your notary, your adouls or a tax adviser. To document the value of your property before the deed, see our real estate appraisal page or the ReaConsult blog.