Morocco Halves Property Registration Fees to Boost Real Estate Market Amid Pandemic

In order to boost sales as soon as the state of health emergency is lifted, the supervisory authority intends to institute a 50% reduction in registration fees for real estate acquired by the end of this year. In reality, the decision is no longer at the study stage; it has already been enacted. It only remains for parliament to give its approval in the coming days for it to come into force.

This is a temporary measure on the registration fees for real estate acquired between the period of the entry into force of the future amending finance law and December 31 next. The reduction will apply to "Mourabaha", "Ijara mountahia bitamlik", or "Moucharaka moutanakissa" contracts and will cover the first sale of social housing and low-value housing, as well as the first acquisition of such housing by credit institutions and the like.

The objective, according to the officials, is to cover high-end residential real estate only. In other words, commercial real estate is not taken into account for the moment. It is also a question of helping individuals and legal entities to cope with the economic and financial difficulties inherent in the health crisis of the coronavirus.

Concretely, the officials plan to postpone the derogatory measures relating to the voluntary regularization of the tax situation of taxpayers. This, to allow them to benefit from a grace period until November 30 for the rectifying declarations and to pay the additional rights in a single payment before December 15.

With regard to the contribution, in respect of liquid assets deposited in bank accounts or held in cash in the form of banknotes, the interested parties will be able to have an additional period after the entry into force of the amending finance law, i.e. until December 31, 2020. Other changes are expected in the calendar of tax deadlines, established by the 2020 finance law.