Morocco to End Tax Breaks for Real Estate Developers, Shift to Buyer Subsidies

The end of the exemptions granted to real estate developers is imminent. The government intends to revise the tax advantages granted to certain economic sectors, with the real estate sector at the top of the list, a major beneficiary of tax exemptions, reports the Arabic-language daily Al Akhbar. It alone consumes more than 22% (6 billion dirhams each year) of the tax advantages, the total amount of which is estimated at more than 29 billion dirhams. Already, the services of the Ministry of Finance in coordination with their counterparts at the Ministry of Housing are working to put in place a new aid system to replace the exemptions granted so far to developers as part of the preparations for the 2023 finance bill.

The subject was on the agenda of a meeting that saw the participation of Fatima-Ezzahra Mansouri, Minister of Housing and Real Estate Developers. It was a question of discussing the possibility of replacing the current system of aid based on tax exemptions with another mechanism allowing direct targeting of the beneficiaries to enable them to access housing. The implementation of this measure implies that real estate developers will make less additional profits.