Moroccan Expats Face Complex Tax Rates in Real Estate Investments Back Home
Acquiring real estate in Morocco is a lifetime project for some, particularly Moroccans residing abroad (MREs), whether for a secondary residence or an investment.
This procedure is subject to the payment of registration fees. The rate of this administrative tax is not fixed; it varies depending on the nature of the property, its intended use, and the legal framework of the transaction, as detailed in the official tax documentation.
A reference rate, set at 4%, applies to several categories of real estate transactions. It concerns:
• The acquisition of premises for residential, commercial, professional or administrative use;
• The purchase of these same premises by credit institutions as part of specific financing contracts such as Mourabaha, Ijara Mountahia Bitamlik or Moucharaka Moutanakissa;
• The act of allocation of these premises by cooperatives or associations for the benefit of their members;
• The land on which these premises are built, up to a limit of five times the covered area.
A more advantageous rate of 3% is provided to stimulate the assisted housing sector. It applies exclusively to the first sale of certain properties, provided that the developer has signed an agreement with the State. These include:
• Social housing;
• Low-value housing.
The legislation precisely defines these categories. Social housing corresponds to a housing unit of 50 to 80 m², the sale price of which does not exceed 250,000 dirhams excluding VAT. A low-value housing unit is a 50 to 60 m² unit, with a first sale price capped at 140,000 dirhams.
Transfers free of charge, such as donations, are subject to a separate tax system. They benefit from a registration rate of 1.5%, provided that the donation is made between persons with specific family ties:
• In direct line (between ascendants and descendants);
• Between spouses;
• Between brothers and sisters;
• Between the person providing Kafala (legal custody) and the child in care, in accordance with Law No. 15-01.
The calculation of registration fees for real estate in Morocco requires a precise analysis of the operation. The nature of the property (standard, social, low-value), the type of transaction (purchase, participatory financing, donation) and the legal relationship between the parties are the determining factors of the applicable tax rate.
