Morocco 2026 Finance Law: What Changes for Real Estate

Major tax changes in the 2026 Finance Law

Morocco’s 2026 Finance Law introduces significant changes that directly impact the real estate sector. Whether you’re a property owner, investor, or future buyer in Marrakech, understanding these new measures is essential for making the best decisions.

1. 5% Withholding Tax on Rental Income

One of the flagship measures of the 2026 Finance Law is the introduction of a 5% withholding tax (excluding VAT) on rental income. Effective from July 1, 2026, this measure applies to:

• Companies subject to corporate tax
• Individuals under the net income tax regime
• Income from long-term rentals

Practical impact: If you rent an apartment in Marrakech for 10,000 MAD/month, a 500 MAD withholding will be deducted at source. This measure aims to improve tax compliance in the rental sector.

2. 2% Traceability Tax on Real Estate Transactions

An additional 2% registration fee now applies to real estate transactions where payments are not traceable. For sales exceeding 1,000,000 MAD, this represents a minimum surcharge of 20,000 MAD.

This measure strongly encourages the use of bank transfers and certified checks for all property purchases.

How to avoid this additional tax?

• Make all payments via bank transfer
• Keep receipts for every transaction
• Work with a notary who ensures traceability
• Engage a professional real estate agency to guide you

3. Housing Assistance Program Reform

The direct housing assistance program sees important adjustments in 2026:

• 100,000 MAD aid for properties priced up to 300,000 MAD
• 70,000 MAD aid for properties between 300,001 and 700,000 MAD
• 5-year occupancy requirement: any resale before this period requires full repayment of the aid
• Extended to co-ownership: co-owned properties are now eligible

4. Social Solidarity Contribution Extended to 2028

The Social Solidarity Contribution (CSS), initially temporary, has been extended until 2028. It applies to high incomes and corporate profits, indirectly impacting real estate developers and high-capacity investors.

5. Strengthened VEFA Law: Greater Protection for Buyers

The Law 107-12 on Off-Plan Sales (VEFA) continues to be strengthened with:

• Reservation contract capped at 5% of the sale price, with mandatory escrow account
• Clearly defined delivery deadlines enforceable against the developer
• Mandatory completion guarantee
• Right of conservatory seizure for buyers who have paid more than 50%

6. Impact on Marrakech’s Real Estate Market

Marrakech remains Morocco’s most dynamic market with a 24.1% increase in transactions in 2025. The 2026 Finance Law should:

• Professionalize the rental market through withholding tax
• Encourage transparency with the traceability tax
• Boost first-time purchases via reformed housing aid
• Secure off-plan purchases in new developments

For investors, rental yields in Marrakech remain highly attractive, between 7% and 12% gross, which more than compensates for the new tax measures. Contact our experts for a personalized analysis.

FAQ: 2026 Finance Law and Real Estate in Morocco

When does the 5% withholding tax take effect?

The 5% withholding tax on rental income took effect on July 1, 2026. It automatically applies to professional tenants and companies.

How to avoid the 2% traceability tax?

Simply make all property transaction payments via bank transfer or certified check. Traceability must be proven to the notary during registration.

Is the housing aid available in Marrakech?

Yes, the direct housing aid program applies throughout Morocco, including Marrakech. Aid ranges from 70,000 to 100,000 MAD depending on the property price.

Is VEFA safe for buying new property in Marrakech?

The strengthened Law 107-12 provides solid guarantees: reservation contract capped at 5%, escrow account, completion guarantee, and right of conservatory seizure. However, we recommend professional guidance.

What is the average rental yield in Marrakech in 2026?

Gross rental yield in Marrakech ranges between 7% and 12% depending on property type and neighborhood. Seasonal rentals in tourist areas offer the best returns.