Morocco Extends Tax Breaks for Homebuyers, Boosting Affordable Housing Market

The measure has been renewed and even improved in the 2021 Finance Act. Thus, "the first acquisitions of social housing of around 250,000 dirhams, depending on the regions, and of low property value of 140,000 dirhams, will be exempt from registration fees," reports L’Economiste, specifying that this only concerns the first sales.

In addition, "transactions on real estate and land assets whose price is capped at 4 million dirhams will benefit from a 50% reduction in registration fees" and this, for six months, until June 30, 2021, as the government plans an effective recovery of activities from the second half of 2021. Moreover, following a drop in sales during the lockdown, exchanges have increased by 117% over three months, attesting to the market’s recovery that began in July.

To maintain the market’s momentum in 2021, L’Economiste proposes the implementation of a direct aid system for households and to bring interest rates back to 2 to 2.5%, in order to promote access to home ownership for buyers.