Legal Gaps in Morocco’s Housing Cooperatives Raise Concerns for Buyers

The model of housing associations and cooperatives does not offer the legal and financial guarantees necessary to engage in complete safety. "It only takes an announcement with an attractive price to encourage massive financial commitments, without any legal protection," said Younes Idrissi Kaitouni, Director General of Taxes, during a recent ftour-debate organized by L’Économiste.

These non-profit associations bringing together hundreds of individuals are therefore exempt from VAT and corporate tax. "The real problem is not the tax exemption, but the lack of protection for citizens," Kaitouni observed, warning about disputes related to delays or non-completion of projects, as well as the partial or total loss of invested funds.

To avoid falling into these pitfalls, the official recommends setting up a legal framework to organize these housing associations or cooperatives. Specifically, he asks to set a legal threshold above which these entities will change status to become a formal structure in order to guarantee more security and transparency.

The objective is not to tax these structures, but to regulate them and protect savers, the specialized media indicates. "The objective is to prevent any ambiguity that could weaken the stakeholders or generate regulatory distortions." It is up to the legislator to take the necessary measures to guarantee the legal and financial security of households in real estate matters.