Foreign Property Ownership and Acquisition in Casablanca

Legal Framework and Foreign Ownership Permissions

Foreign nationals, whether resident or non-resident, are permitted to acquire and hold 100% freehold ownership of urban real estate in Casablanca. Moroccan law grants foreign buyers identical legal property rights to Moroccan citizens when purchasing urban assets, including apartments, villas, commercial premises, and residential land plots. There are no foreign investment quotas, state approval requirements, or compulsory local partners for urban acquisitions.

Restrictions apply strictly to land classified as agricultural. Foreign individuals cannot own agricultural land in Morocco directly. If a parcel on the outskirts of Casablanca carries agricultural classification, foreign acquisition is prohibited unless the government issues a Certificate of Non-Agricultural Vocation (*Attestation de Vocation Non-Agricole* or AVNA), which officially reclassifies the land for urban or commercial development. Within Casablanca municipal boundaries, standard residential properties possess urban status and are exempt from AVNA restrictions.

Real estate titles in Morocco fall into two legal categories:

1. **Titled Property (*Titre Foncier*):** Registered under the state-backed land registry system managed by the *Agence Nationale de la Conservation Foncière, du Cadastre et de la Cartographie* (ANCFCC). Ownership recorded on a *Titre Foncier* is definitive, indefeasible, and protected against third-party claims. Non-resident investors should strictly confine transactions to titled property. 2. **Untitled Property (*Melkia*):** Held under customary Islamic law deeds witnessed by religious notaries (*Adouls*). *Melkia* properties carry significant title risks, unclear boundaries, and complex inheritance claims. Converting a *Melkia* into a *Titre Foncier* requires multi-year administrative procedures.

Acquisition Sequence and Fund Custody

All real estate transactions in Morocco are legally governed by a licensed notary (*notaire*). The notary acts as a neutral legal officer appointed by the Ministry of Justice, responsible for due diligence, holding purchase funds in escrow, collecting taxes, and securing title registration.

Step 1: Offer and Reservation

Upon agreeing purchase terms with the seller, the buyer enters into a formal reservation agreement or price agreement. No money changes hands directly between buyer and seller; all funds must pass through the notary's official bank account (*compte de consignation*).

Step 2: Preliminary Agreement (*Promesse de Vente* / *Compromis de Vente*)

Both parties sign the preliminary contract before the notary. This legally binding document specifies the property details, agreed price, payment schedule, completion deadline, and conditions precedent (such as mortgage approval).

• Deposit: A deposit of 10% of the purchase price is transferred by the buyer directly into the notary's escrow account. The notary holds this money securely; the seller cannot access deposit funds prior to final settlement.

Step 3: Notarial Due Diligence

The notary verifies the property's legal status via ANCFCC records. Key checks include:

• Confirming the seller's sole ownership via an ANCFCC ownership certificate (*certificat de propriété*).
• Verifying that the *Titre Foncier* is free of unrecorded mortgages, liens, tax seizures, or legal claims.
• Confirming the seller has obtained a tax clearance certificate (*quitus fiscal*) covering local property taxes (*taxe d'habitation* and *taxe des services communaux*).
• Checking municipal planning compliance (*certificat d'urbanisme*) and co-ownership regulations (*règlement de copropriété*) for apartments.

Step 4: Final Deed of Sale (*Acte Authentique de Vente*)

Once due diligence is complete, buyer and seller sign the final conveyance deed (*Acte Authentique de Vente*) in person at the notary's office or via a legal power of attorney (*procuration*).

• Balance of Funds: The buyer transfers the remaining 90% of the purchase price, plus estimated taxes and fees, to the notary's escrow account prior to signing.
• Disbursement: The notary releases funds to the seller only after the deed is executed and tax clearances are confirmed.

Step 5: Tax Payment and ANCFCC Title Registration

Following execution of the final deed, the notary pays all applicable state transaction taxes, registers the deed with the tax authority (*Direction Générale des Impôts*), and submits the file to the local ANCFCC land conservation office (*Conservation Foncière*) in Casablanca. ANCFCC updates the *Titre Foncier* to record the buyer as the new registered owner and issues a updated ownership certificate.

Foreign Exchange Regulations and Capital Repatriation

Morocco operates exchange control regulations overseen by the *Office des Changes*. Foreign non-resident buyers must comply with specific banking procedures to guarantee the right to repatriate sale proceeds and capital gains in foreign currency upon reselling the property in the future.

To establish full convertibility protection, the buyer must: 1. Open a Convertible Dirham Account (*Compte en Dirhams Convertibles*) with a licensed Moroccan bank. 2. Transfer purchase funds electronically into this account from an overseas bank in foreign currency (e.g., EUR, GBP, USD). 3. Obtain a bank certificate of foreign currency import (*attestation de virement en devises*) from the Moroccan receiving bank confirming the foreign currency inflow.

The notary requires this bank attestation to register the purchase under the foreign convertibility regime with the *Office des Changes*. Failure to follow this procedure prevents the buyer from legally transferring funds out of Morocco upon resale.

Mandatory Buyer Documentation

Foreign individual buyers must present the following documents to the notary:

• Passport: Valid passport (original and notarised copy).
• **Moroccan Tax Identification Number (*Identifiant Fiscal* - IF):** Obtained via the notary from the tax authority for property registration.
• Proof of Capital Importation: Bank transfer receipts and the official *attestation de virement en devises* issued by a Moroccan commercial bank.
• Marital Status Documentation: Marriage certificate or affidavit, as Moroccan land registry records specify co-owners' legal matrimonial regimes.
• **Power of Attorney (*Procuration*):** Consularised or apostilled POA if the buyer is represented by a representative.

If purchasing via an overseas corporate entity, required documents include the certificate of incorporation, articles of association, board resolution authorizing the purchase, and verified passport copies of ultimate beneficial owners.

Transaction Taxes, Fees, and Timeline

Closing costs in Casablanca generally average between 6% and 8% of the property value, excluding real estate agent fees. Buyers should budget for the following rates in 2026:

• **Registration Duty (*Droits d'enregistrement*):** 4% of purchase price paid to the *Direction Générale des Impôts*.
• **Land Registry Fee (*Taxe de Conservation Foncière*):** 1.5% of purchase price plus a fixed administrative fee (MAD 150, 200) paid to ANCFCC.
• **Notary Fee (*Honoraires du Notaire*):** 1% to 1.5% of purchase price (subject to statutory minimums), plus 20% VAT applied to the notary fee.
• Administrative Costs and Stamps: MAD 1,000 to MAD 3,000 for title searches, ownership certificates, and registration stamps.
• **Real Estate Agent Fee (*Frais d'agence*):** 2.5% to 3% plus 20% VAT (typically split between seller and buyer or paid according to listing terms).

For a standard titled apartment or villa in Casablanca with clear paperwork, the complete process from signing the *promesse de vente* to registration at the ANCFCC takes 4 to 8 weeks.