Agricultural Land in Morocco: Can Foreigners Buy It?

The Legal Restriction on Foreigners

Morocco maintains a legal prohibition on the acquisition of agricultural land by foreign individuals. This restriction is rooted in national agricultural policy: the government seeks to retain agricultural land under Moroccan ownership to protect food security and the rural economy.

The restriction applies to all foreign nationals — regardless of their country of origin, their length of residence in Morocco, or their personal ties to Morocco. Even a foreigner who has lived in Morocco for decades, speaks Arabic, and holds a long-term residency card is not permitted to purchase agricultural land as an individual.

This prohibition does not affect urban real estate. Foreign nationals can freely purchase apartments, villas, commercial premises, and other urban properties. The restriction is specific to land classified as agricultural.

Dahir on Agricultural Land

The principal legal instrument governing this restriction is the Dahir of 13 June 1990 relating to agricultural land. This law prohibits the transfer of agricultural land to foreign nationals through any form of acquisition — sale, donation, inheritance, or exchange.

Key provisions of the Dahir of 1990:

• Foreign individuals are prohibited from acquiring agricultural land in Morocco by any means
• Any notary or public officer who participates in such a transfer in violation of the Dahir commits a legal infraction
• Transactions contrary to the Dahir are null and void
• Moroccans residing abroad (MREs — Marocains Résidant à l'Étranger) are treated differently and may, in defined circumstances, acquire agricultural land

The law was enacted to prevent the concentration of agricultural land in foreign hands following concerns about land speculation during the late 1980s and early 1990s.

What Counts as Agricultural Land

Determining whether a given piece of land is classified as agricultural requires examining several sources:

• Titre foncier classification: The land registry entry will typically describe the nature of the land. Agricultural land is often designated as terres agricoles or terrain à vocation agricole.
• Urban planning documents (plan d'aménagement): The local commune's urban plan classifies land into zones — urban, peri-urban, agricultural, forest, etc. A plot outside the urban perimeter (périmètre urbain) is more likely to be classified as agricultural.
• Physical characteristics: Land actively used for farming, orchards, or pasture is typically considered agricultural regardless of formal classification in some cases.

A piece of land that is agricultural today may be reclassified as urban through a plan d'aménagement update. Such reclassification changes the legal status of the land and may open it to foreign purchase. However, reclassification is an administrative process controlled by local and central government authorities.

Before any transaction involving land outside a city's established urban perimeter, a buyer must verify the land's classification through both the titre foncier and the local urban planning authority. Relying solely on a seller's description is insufficient.

Permitted Exceptions

The Dahir of 1990 and subsequent regulations provide certain exceptions to the general prohibition:

• Moroccans Residing Abroad (MREs): Moroccan nationals who hold foreign nationality or reside abroad are not considered "foreigners" for the purpose of the Dahir. They retain the right to purchase agricultural land in Morocco.
• Inheritance by foreign heirs: A foreign national who inherits agricultural land from a Moroccan testator may receive the inheritance, but specific procedural rules apply and the land may need to be sold within a set period depending on the circumstances.
• Moroccan legal entities: A Moroccan company (SARL, SA, etc.) with foreign shareholders may, in certain cases, hold agricultural land, particularly if the acquisition is part of an approved agricultural investment project. This remains a nuanced area where legal advice is essential.

Long-Term Lease as Alternative

The most practical alternative to purchasing agricultural land for a foreign investor is a long-term lease. Moroccan law recognizes several lease structures:

• Bail emphytéotique (emphyteutic lease): A long-term lease of 18 to 99 years that grants the lessee extensive rights over the land, including the right to build, develop, and invest. The lessee pays an annual canon (rent) to the landowner. The lease can be registered at the Conservation Foncière and is transferable.
• Standard agricultural lease (bail rural): A shorter-term lease governed by agricultural tenancy rules. Suitable for farming operations that do not require long-term capital investment in land improvements.
• State land lease: The Moroccan state owns significant agricultural land and makes it available for lease to investors, including foreign investors, under specific programs managed by the Agence de Développement Agricole (ADA).

A lease does not confer ownership and therefore does not trigger the Dahir of 1990 restriction. A foreign individual or a foreign-controlled Moroccan company can enter into an emphyteutic lease.

Investment Structures

Foreign investors interested in Morocco's agricultural sector have several structural options:

• Moroccan company with foreign capital: Establishing a Moroccan SARL or SA allows a foreign investor to participate in agricultural activities through a local legal entity. The company may lease land and conduct agricultural operations. Whether such a company can own agricultural land depends on the specific circumstances and the applicable regulations at the time.
• Joint venture with a Moroccan partner: A foreign investor can establish a joint venture with a Moroccan partner who holds the land title, while the JV entity conducts the agricultural operations.
• Investment under Plan Maroc Vert / Generation Green: Morocco's agricultural development programs have created channels for structured foreign investment in the sector, including partnerships with the Agence de Développement Agricole.

Each of these structures has its own legal, tax, and operational implications. None of them is a straightforward substitute for ownership, and each requires careful legal structuring.

Recent Developments in the Law

Morocco has undertaken broader economic liberalization in recent years, including measures to attract foreign direct investment in the agricultural and agro-industrial sectors. However, the core prohibition on foreign individual ownership of agricultural land under the Dahir of 1990 has not been formally repealed as of this writing.

Discussions within Morocco's investment reform agenda have touched on the land ownership question, but any changes to the restriction would require legislative action. Investors should monitor developments and seek current legal advice before structuring any agricultural investment.

The 2022 Investment Charter (Charte de l'Investissement) introduced improvements to the general investment environment, including agricultural investment facilitation measures, but did not directly amend the land ownership restriction for foreign individuals.

Frequently Asked Questions

Is it illegal for a foreigner to buy agricultural land in Morocco?

Yes, in principle. The Dahir of 13 June 1990 prohibits foreign individuals from acquiring agricultural land in Morocco. Transactions in violation of this prohibition are null and void.

Are there exceptions to the restriction?

Yes. Moroccans residing abroad (MREs) may purchase agricultural land. Foreign inheritance of agricultural land is subject to specific procedural rules. Moroccan companies with foreign shareholders may access agricultural land under certain conditions related to approved investment projects.

Can I lease agricultural land as a foreigner in Morocco?

Yes. A long-term emphyteutic lease of up to 99 years is available to foreign individuals and companies. Leasing does not constitute an acquisition of ownership and therefore does not fall under the Dahir of 1990 restriction.

What happens if I buy agricultural land unknowingly as a foreigner?

A transfer of agricultural land to a foreign individual in violation of the Dahir of 1990 is null and void. The notary is legally prohibited from completing such a transaction. Due diligence on land classification before any purchase is essential.