MRE : what the tax authorities require to build a house in Morocco beyond 300 m²

Any person carrying out a housing unit for main residential use, the built-up area of which does not exceed 300 m², benefits from an exemption from the social solidarity contribution. If this area exceeds this threshold, the owner is liable for this contribution on the entire covered area. The rate is set per housing unit - defined as the indivisible building that has been the subject of a building permit - according to the following brackets:

• 60 dirhams per m² for an area between 301 and 400 m².

• 100 dirhams per m² for an area between 401 and 500 m².

• 150 dirhams per m² for an area beyond 500 m².

For construction sites exceeding 300 m², an annual declaration of the construction cost must be filed electronically before the end of February. This obligation applies from the start of the work until the obtaining of the occupancy permit. The file must include a detailed statement containing the following information:

• The full identity of the supplier (name, first name or company name), its tax identification number and the common identification number of the company (ICE).

• The precise designation of the goods, works and services with the amount excluding tax and the amount of the tax appearing on the invoice.

• The method and payment references for each listed transaction.

The declaration for the first year must be accompanied by an architect’s certificate estimating the cost of the work or a copy of the contract in the case of a turnkey project. In subsequent years, the owner must report the cumulative cost of the work, the last declaration having to show the overall cost of the construction. This system is mandatory for all permits issued from January 1, 2019.

Once the occupancy permit has been issued, the taxpayer has 90 days to file their social solidarity contribution declaration and make the corresponding payment. In parallel, a declaration of completion of the work must be filed no later than January 31 of the year following the end of the work in order to benefit from the exemption from the housing tax for five years.