Moroccan Expats’ Property Transfers: Tax Breaks for Family Donations Unveiled

When an MRE makes a free donation, the operation is subject to registration fees, like any transfer. However, the text provides that the declarations made by the donee or his representatives may benefit from a reduced rate of 1.5% when the donation takes place in direct line, that is to say between ascendants and descendants, between spouses, between brothers and sisters, or between the person providing the kafala and the child taken care of, in accordance with the provisions of Law No. 15-01 relating to the care of abandoned children.

Outside of these specific cases, no exemption or preferential rate is provided. Donations to other persons, even close ones, are then subject to the standard rates of registration fees, according to the nature of the transferred property and the relationship between the parties.

Furthermore, the tax guide also specifies that the free transfers of real estate or real estate rights are exempt from the tax on real estate profits when they are carried out between ascendants and descendants, between spouses, between brothers and sisters, as well as between the person providing the kafala and the child taken care of on the basis of a guardianship judge’s order. This exemption therefore only applies to the income tax related to real estate profits, and not to registration fees.

It is therefore possible for an MRE to transfer real estate without paying significant taxes, provided that the defined family or legal framework is respected. Particular attention must be paid to the type of relationship, the nature of the donation, and the production of the required supporting documents (notarial deeds, kafala judgment, etc.), in order to benefit from the reduced rates or exemptions provided for by Moroccan tax law in 2025.