soon the expiration of the tax incentive

Real estate in Morocco: soon the expiration of the tax incentive”>

The tax incentive expires on June 30th. Anyone wishing to buy housing or bare land will not be able to benefit from the total exemption from registration fees after this period.

No more total exemption from registration fees as of June 30. The tax incentive set out in the 2021 amending finance law expires on this deadline. This measure aims to promote real estate transactions in a context marked by the Covid-19 pandemic and the decline in real estate acquisitions, in particular due to confinement.

Those interested in purchasing social housing of the DH 250,000 type excluding VAT have thus benefited and continue to benefit from the total exemption from registration fees. “The measure consists of the exemption from registration fees (social housing at 250,000 DH excluding VAT and low real estate value at 140,000 DH) or the reduction of 50% (price capped at 4 million DH)”, explains The Economist, specifying that it applies to immovable property and land intended for the construction of personal housing (main or secondary).

“This is a very advantageous measure, which has helped boost the sector in recent months. Unfortunately, it is limited in time. Knowing that it expires at the end of June, the device should only benefit people who have started the purchase of their property in March 2021 since the processing of files by the banks can take up to two months. However, most of the financing is provided by bank credit. It is also necessary to count the time of instruction of the files by the notaries ”, entrusts a real estate developer.

The situation will change from July 1. The normal scale (registration fees) will be applied again: 4% for the purchase of housing and 5% for empty land. Real estate developers would have liked this measure to be extended. “The incentive should have been extended until the end of 2021 to capitalize on the recovery of a convalescent economy“, insists this promoter.

Keywords: Real estate, Taxes

These articles may interest you

Tags
Back to top button
Close