Morocco Slashes Real Estate Taxes: Expats’ Golden Opportunity for 2025 Investment

The new tax guide indeed provides a series of significant benefits, including reduced registration fees, which could well convince the most hesitant to take the plunge.

The flagship measure is the generalization of a preferential rate of 4% on registration fees for any real estate purchase made by an MRE, whether it is for residential, commercial, professional or administrative use.

This advantageous 4% rate also applies to other specific transactions:

• Acquisition through Islamic financing contracts (Mourabaha, Ijara Mountahia Bitamlik or Moucharaka Moutanakissa).
• The allocation of premises by cooperatives or associations to their members.
• The purchase of land on which these premises are built, up to five times the covered area.

The government has reserved special treatment for the social housing sector. For the first sale of this type of property or so-called "low-value" housing, the registration fee rate drops to 3%. To be eligible, these homes must meet specific criteria:
• Social housing: its area must be between 50 and 80 m², for a sale price not exceeding 250,000 dirhams (excluding VAT).
• Low-value housing: its area must be between 50 and 60 m², for a maximum sale price of 140,000 dirhams.

Finally, transfers of assets within the family circle benefit from particularly lenient taxation. A donation is subject to a rate of only 1.5% when it is made in direct line, that is to say between:

• An ascendant and a descendant (parents, children).
• Spouses.
• Brothers and sisters.
• A guardian and the child taken care of under the "kafala" system.

However, care must be taken not to let the procedures drag on. To benefit from these conditions, all deeds, whether a purchase or a donation, must be registered within 30 days of their signing. Forgetting or delay would expose the new owners to penalties and increases, effectively canceling the benefits of these incentive measures.