Morocco Raises Property Tax Break Threshold to 2.5 Million Dirhams

The amendment in question, validated by the government, specifies that to benefit from the 2% registration fees, the total cost of the premises for residential use or the land intended for the same use of the buyer must not exceed the threshold of 2.5 million DH, according to a parliamentary source reported by Le360. Beyond this threshold, the owner will be subject to the 4% rate.

This 2% rate only took into account residential premises (and not land) with a value of less than 1 million dirhams in the first version of the PLFR 2020.

According to the same source, the State has considerably expanded the target of buyers likely to benefit from this reduction. This measure will be valid from its publication in the Official Bulletin of the Amending Finance Act and until December 31, 2020. It aims to somewhat revive the real estate market, which has experienced a drastic drop in transactions since the start of the health crisis.

It takes into account the deeds established during the acquisition of premises for residential use or land intended for the same use, as well as the deeds relating to the acquisition of these properties by credit institutions or similar organizations, as part of a "Mourabaha", "Ijara Mountahia Bitamlik" or "Moucharaka Moutanakissa" contract.