Urban Land Tax Overhaul: Morocco’s Bold Move to Combat Speculation

With Law 14-25 of June 12, 2025, the calculation of the Tax on Undeveloped Land (TNB) introduced in 2008 is changing. It will be calculated according to the actual level of equipment of the land and public services from January 2026, replacing the old system based on zoning. Until now, the amount owed depended on the zoning established by the urban planning documents, with rates varying according to residential or building areas, recalls the magazine Challenge, adding that taxpayers had to declare and pay their tax before the end of February each year. However, this method has shown its limits: it could penalize land that is poorly served by basic services such as water or electricity. The new approach is more realistic, as it takes into account access to infrastructure and public services such as sanitation, roads, waste collection, transportation, schools and hospitals.

The Minister of the Interior intends to accelerate the process. Already, Abdelouafi Laftit has sent a circular to the walis and governors on October 6, asking them to quickly implement this new system. It should be recalled that the TNB applies to urban land and land related to buildings whose area exceeds five times that of the buildings. Bare land used for professional or agricultural purposes is excluded from the tax. According to the circular of August 5, 2025, there are now three categories of zones: well-equipped zones, where the tax varies from 15 to 30 DH/m², moderately equipped zones, between 5 and 15 DH/m² and poorly equipped zones, from 0.5 to 2 DH/m². A "moderately equipped" zone is one that has at least paved roads and water and electricity networks. Well-equipped areas are recognized by functional sanitation, public lighting, and proximity to urban facilities and public services.

From January 2026, the retention of land in the centers of equipped cities by the municipalities will be costly. Rates will reach 25 to 30 DH/m², or up to 300,000 DH per hectare per year. Pending this date, real estate developers - often holders of vast tracts of land - are expressing concerns about future projects. They propose that the tax target only speculators and that developers with a stock of land for projects can benefit from relaxations. They also suggest that delays attributable to the administration or distribution authorities should not be taken into account in the calculation of the tax.