The tax on real estate ... its impact on the sector and its duties

The tax on real estate ... its impact on the sector and its duties

The tax on real estate ... its impact on the sector and its duties

The Moroccan citizens are aware of the real estate market in Morocco, which has contributed to many factors that have changed the supply and demand index, both those related to privatization in providing housing that meets the expectations of future buyers, especially economic housing, which despite the need of citizens, Has become an important obstacle in the sector, because of the strategic location in which social housing apartments are built, not to mention the low quality of these housing projects targeting the poor class of citizens, and citizens know the real value of the construction of these apartments and circulation of In a number of media outlets, pointing out that the total value of each apartment in economic housing does not exceed 12 million centimes, and is sold to the benefit of citizens by 25 million centimes, data increased the aversion and led to undermine the confidence of Moroccans in real estate investors who build such projects, Leading directly to a crisis in the real estate sector, which is one of the most active sectors in Morocco.

The high price factor within the major cities for the property is considered a balancing factor in the decline of the sector, but all these factors lie in the side, and the tax factor on the property on the other hand, what this thorny issue raises about the value paid by realtors and taxes, And make them review their accounts hundreds of times before buying or selling a floor spot, house, apartment or any taxable property, given the tax value the landlord will pay the state, which for many of them is very high.

Tax solutions aspiring to overcome the real estate crisis
Sector officials were aware of the problems Morocco encountered in Morocco because of the housing tax, which caused the government to raise the issue of tax cuts on the sale of real estate, given Morocco's reluctance to sell land and apartments for fear of tax costs. In this regard, Minister of Economy and Finance Mohammed Boussaid began to persuade the House of Representatives to reduce the rate of tax on real estate profits on the sale of land. It is beneficial that this measure can revive the real estate sector in Morocco, especially if this tax is reduced from 30% , Currently in force, to 20 per cent.

The relationship between landowners' reluctance to sell their property and its impact on the real estate recession in Morocco is very clear. The first is afraid of losing the real value of the land and paying a good amount for the tax interests. The second is stagnant due to the lack of land for the completion of new housing projects, Those that are located in the cultural scope of the major cities such as Casablanca, Rabat and Marrakech, where the current finance law imposes on the land owners, 20% must be paid on the real estate profits in the case of the sale of the period of purchase and sale to less than 4 years, While for a period ranging from 4 to 6 years Of the purchase and sale tax is up to 25 per cent. If the period between purchase and sale exceeds 6 years, the landowner must pay 30 per cent of the tax interests of the real estate profits. The Finance Proposal for 2018, developed by the Minister of Economy and Finance , Mohamed Boussaid, can reduce the fear of property owners and encourage them to sell, which will lead to the provision of housing projects in the urban area of ​​cities, and contribute to the rise in the real estate sector in Morocco.

The tax on housing and collective services is required for real estate owners in the urban area, adjacent areas, in addition to the tourist stations, whether summer or winter, in addition to the areas that have a document for reconstruction, as all the built properties are obliged to pay tax except exempted, Permanent exemptions are the property and property estates in the possession of the state and the local communities, as well as the hospitals, while temporary exemptions are the housing tax, which the housing owner benefits from in the first five years after the completion of construction work. If this is the case of housing is a major property owner.

Loans of Islamic banks in the balance

The calculation of the housing tax is 10 per cent, 20 per cent and 30 per cent. These rates are calculated in relation to the rent value of the property, where officials place an average value of the property rent in the area and base it on imposing the tax rates mentioned above. The annual rent of the property does not exceed 5000 dirhams. In this case, it is exempt from the housing tax. If the sum is between AED 5001 and AED 20 000, the tax is charged at 10%, which means AED 500 per year. The denomination ranges between 20,001 AED and 40 000 DH. The tax value is 20% Cent, which means AED 2500 per year, and the third case in which the fees worth 30 per cent when they Alsomh exceed 40 001 dirhams.

As for the collective service tax, it is divided into two parts. If the property belongs to the civilizational domain, the rate is 10.5 per cent for the annual rent period. If in the vicinity of the urban area, the tax rate is 6.5 per cent.

In some cases, apartments with the same properties, space and site are taxed more than others. This factor is examined if the housing is primary or secondary. The owner of the property benefits if housing is the main factor of the 75 percent tax deduction. When the owner of secondary housing pays the full value, and proceeds of these taxes, by 90 per cent for the budgets of groups that impose fees within its territory, while 10 per cent goes to the public budget to draw the costs of the measure.