What Costs Do Buyers Need to Pay When Purchasing Property in Marrakech?

Purchasing property in Marrakech is a fantastic investment, but it's important to understand the full scope of costs involved beyond the property’s price. Knowing these costs in advance will help you plan and budget effectively. Here, we break down the key expenses that buyers need to pay when buying property in Marrakech.

1. Purchase Price

The most obvious cost is the purchase price of the property. Whether you're purchasing a traditional riad, a modern villa, or an apartment, the purchase price will be determined through negotiation between you and the seller. Make sure to allocate additional funds for the costs mentioned below.

2. Notary Fees

In Morocco, a notary is required to oversee the property transaction and ensure that it complies with local laws. Notary fees typically range from 1% to 2.5% of the property’s purchase price. The notary acts as an impartial third party who manages the legal aspects of the transaction, ensuring everything is above board.

3. Registration Fees and Taxes

Once you buy a property, you must register it in your name. The registration process involves paying a registration tax, which is typically around 4% of the property's purchase price. This fee covers the cost of registering the property title and ensures the property is legally yours.

4. Legal Fees

While not legally required, hiring a lawyer to represent you during the property purchase process is highly advisable. A lawyer will assist with due diligence, title verification, and contract review. Legal fees vary but generally amount to around 1% to 1.5% of the purchase price. This investment can provide peace of mind that your interests are fully protected.

5. Agency Fees

If you work with a real estate agency to find your property, you will need to pay agency fees. Typically, these fees are shared between the buyer and the seller, with the buyer's portion being approximately 2.5-3.0% of the purchase price. Agency fees cover the services of finding and negotiating the property.

6. Property Survey and Valuation Costs

It is advisable to have the property surveyed and valued to assess its condition and ensure it matches the seller's description. Property surveys help identify potential structural issues or other concerns that could impact your decision. The cost for a survey or valuation can vary depending on the size and type of property but is usually a worthwhile expense to avoid surprises.

7. Mortgage Costs (If Applicable)

If you are obtaining a mortgage to finance your property purchase, there will be additional costs associated, such as bank fees, valuation fees, and potential interest rates. Moroccan banks typically require a down payment of at least 30% for foreigners, and there may be fees for processing the mortgage, which can add to your overall costs.

8. Renovation Costs

If you are buying a property that requires renovation, you will need to budget for renovation costs. These costs will vary significantly based on the scope of work required and your vision for the property. At Hawazine Property Marrakech, we offer renovation project management services to help bring your ideas to life while staying on budget.

9. Utility Connection Fees

If you are buying a new or renovated property, you may need to pay connection fees for utilities like water, electricity, and gas. These fees can vary, but it's important to budget for these initial setup costs to ensure your property is ready for occupancy.

When purchasing property in Marrakech, it's essential to consider all the associated costs beyond the purchase price. Notary fees, registration taxes, legal fees, agency commissions, mortgage expenses, and potential renovation costs all add up. By understanding these expenses in advance, you can budget appropriately and ensure a smooth buying experience. At Hawazine Property Marrakech, we guide our clients through each step of the process, ensuring you are informed about all costs and prepared for a successful purchase.