Morocco Real Estate: New Cash Payment Tax Rules 2026

Since July 1st, 2026, the purchase of a property with a price exceeding 300,000 dirhams can result in an additional registration fee of 2%. This surcharge applies when the deed does not specify the payment methods and references or when payment is made in cash.

On Bladi.net : Morocco Real Estate: Cash Payments Now Cost 2% Extra Fee

The 2% is calculated only on the portion of the price that is not traceable. For a property worth 600,000 dirhams paid entirely in cash, the buyer must bear an additional 12,000 dirhams. If only 100,000 dirhams are paid in cash, the extra cost is limited to 2,000 dirhams.

The surcharge does not apply to payments made notably by crossed non-endorsable cheque, bank transfer, electronic means, bank deposit or credit granted by a financial institution. These provisions, detailed by the General Tax Authority in its circular note no. 737, concern deeds and agreements established since July 1st.

A 5% withholding on certain professional rents

A second measure that came into force on the same date imposes a 5% withholding at source on certain professional rents. It is calculated on the gross amount of rent excluding VAT paid to a company or individual whose leased property belongs to their professional assets.

Since July, this withholding must notably be carried out by the State, local authorities, public institutions, banks and insurance companies. It also concerns private companies achieving at least 500 million dirhams in turnover excluding VAT.

This threshold will be lowered to 350 million dirhams in 2027, then to 200 million in 2028. Rents paid to private individuals, considered as property income, are not subject to this new 5% withholding.

On Bladi.net : Paying for real estate in cash in Morocco becomes a very bad idea

The amount withheld constitutes an advance on the owner’s tax. The latter remains required to declare their rental income and may deduct the withheld amount from the tax ultimately due.