Starting July 1, 2024, a major change will take place in the modalities of real estate transactions in Morocco. These new fiscal provisions aim to regularize real estate transactions and ensure the payment of related taxes. Here is an overview of these new measures and their impact on the real estate market.
Legislative Changes: Mandatory Fiscal Attestation
From July 1, it will be imperative to present a certificate justifying the payment of taxes related to the real estate property for any notarial act to be drawn up. Notaries, adouls, lawyers accredited by the Court of Cassation, and any other person performing notarial functions will no longer be able to draft acts without this attestation of tax payment for the year of transfer and non-prescribed years.
Fiscal Solidarity of Professionals
In the absence of this attestation, professionals (notaries, adouls, etc.) will be fiscally responsible, jointly with the transferors, for the payment of tax debts. This measure aims to reinforce the diligence of professionals in the real estate sector and ensure that properties are fiscally compliant before any transaction.
Mandatory Mention of Housing and Municipal Services Taxes
Another notable change: it will now be mandatory to mention the article number of the housing tax and the municipal services tax (TSC) in notarial acts. After the issuance of the occupancy permit or the creation of individual land titles, developers will have to obtain these numbers from the concerned services for each unit. This measure will facilitate the identification and registration of real estate properties for local taxes upon sale.
Impact on the Real Estate Market
The implementation of these new provisions should allow for better collection of local taxes, thus increasing the Treasury’s tax revenues. Historically, many properties escaped the tax net until their resale. Now, this new regulation will allow properties to be integrated into the tax system more quickly, thereby reducing tax evasion.
The End of an Old Practice
These new measures put an end to an old practice where notaries retained about 20% of the funds from sales until the tax attestation was obtained. While this practice aimed to prevent delays in tax payments, it was often poorly received by sellers eager to quickly access their funds for new investments.
The fiscal reform of real estate transactions marks an important turning point for the Moroccan real estate market. By imposing a mandatory fiscal attestation and making professionals responsible for tax payments, this measure aims to strengthen the transparency and regularity of transactions. For buyers and sellers, it is essential to familiarize themselves with these new requirements to avoid any delay or complication during the transfer of real estate properties.
For ongoing sales at our agency, everything is in order. For those that will be signed by June 30, nothing changes. For signings scheduled from July 1, we invite our clients, sellers, to approach their notary before the signing.
For more information and to assist you in your real estate transactions, do not hesitate to contact our agency. We are at your disposal to offer the best advice and services tailored to your needs.
