Morocco Unveils 5 Key Measures to Stimulate Real Estate Market in 2021 Finance Act

In the 2021 Finance Act, the measures provided for the benefit of the real estate sector concern, firstly, the extension of the reduction in registration fees for real estate purchases, included in the 2020 Amended Finance Act, by 100% for any deed relating to the first sale of social housing and low-value housing. A 50% reduction for deeds relating to the acquisition of vacant land intended for the construction of housing, or premises for residential use with a taxable base amount of no more than four million dirhams, and this, valid until June 30, 2021.

The second and third points relate to the increase in the tax framework for real estate investment companies (OPCI), residential rentals, and the reduction of VAT inside, without the right to deduction, of photovoltaic panels and solar water heaters, in order to develop the ecological transition and the use of green energies.

In addition, the lowering of income tax for all companies, regardless of their date of creation, on salaries paid for 36 months to young people under 35, as part of their first recruitment, with a fixed-term contract. This, to encourage companies to move towards the professionalization of their activities. Furthermore, real estate also takes into account other transversal tax measures adopted for the 2021 fiscal year. This is the implementation of the Single Professional Contribution (CPU) which takes into account all the taxes and duties owed by taxpayers in the exercise of their professional activity.