Morocco's 2027 Finance Bill: what changes for real estate

Keep in mind that this is still a bill. The Finance Committee of the House of Representatives approved its first part on 12 November 2026, and the plenary vote takes place on 13 and 14 November. The text must then go through the House of Councillors before publication in the Official Bulletin, so the figures below may still change.

The 2027 Finance Bill measures that affect property

Measure	Who it concerns	Planned start	What it changes
New income tax scale (first MAD 60,000 tax-free)	Employees and other taxpayers	Income from 1 January 2027	Higher net pay, slightly higher borrowing capacity
Flat 45% deduction for work expenses (cap MAD 35,000/year)	Employees	1 January 2027	Lower taxable income
Direct housing aid continues	First-time buyers (Moroccans and Moroccans abroad)	2027, extension beyond 2028 under study	MAD 100,000 or 70,000 depending on price
Rent-capped rental housing	Students, young workers, young couples	Timing to be confirmed	New rental supply on public land
VAT on the margin (optional)	Dealers in built property	Sales from 1 July 2027	Resale of renovated property can be subject to VAT
Registration certificate for all deeds	Every registered deed	Deeds from 1 January 2027	Written proof the deed is registered and duties paid
Old (time-barred) deeds registered without penalties	Holders of deeds unregistered for over 10 years	1 January 2027	Regularisation at the current rate, no surcharges

Income tax: higher take-home pay from January 2027

This is the most visible measure. The bill raises the tax-free band from MAD 40,000 to MAD 60,000 of annual net taxable income. Economy and Finance Minister Fouzi Lekjaa summed it up this way: net monthly salaries below MAD 10,000 would no longer pay income tax, which covers 87% of employees.

The cut is phased in until 2031. The transitional scale planned for 2027:

Annual net taxable income	2026 rate	2027 rate (bill)
Up to MAD 40,000	0%	0%
MAD 40,001 to 60,000	10%	0%
MAD 60,001 to 80,000	20%	10%
MAD 80,001 to 100,000	30%	20%
MAD 100,001 to 180,000	34%	34%
Above MAD 180,000	37%	37%

From 2031, the target scale would have only three rates: 10% up to MAD 150,000, 20% up to MAD 500,000 and 30% above, still with MAD 60,000 tax-free.

Worked example

Take a net taxable income of MAD 90,000 a year (before family allowances):

• 2026 tax: 2,000 + 4,000 + 3,000 = MAD 9,000
• 2027 tax: 2,000 + 2,000 = MAD 4,000
• Saving: MAD 5,000 a year, about MAD 417 a month

For MAD 72,000, the saving would be about MAD 3,200 a year (MAD 267 a month). For MAD 150,000, about MAD 6,000 a year (MAD 500 a month).

What it means for your mortgage

Banks base the maximum monthly payment on net income. If your bank caps repayments at 40% of income, an extra MAD 417 a month allows roughly MAD 167 more in monthly repayments. It is modest, but it can help a borderline application. To redo the maths with your own figures, see our guide to borrowing capacity in Morocco. The cost of credit also depends on rates: read our article on the 2.25% policy rate and mortgages.

Direct housing aid: kept in 2027, extension in sight

The bill plans MAD 10.4 billion of investment for housing in 2027, to continue direct housing aid, speed up the clearance of substandard housing and improve rural housing. At the end of September 2026, the programme had nearly 128,000 beneficiaries.

The aid amounts do not change:

Home price (incl. VAT)	Aid amount
Up to MAD 300,000	MAD 100,000
MAD 300,001 to 700,000	MAD 70,000

According to Le Desk, the fund that pays for the programme would receive MAD 5.72 billion in 2027, of which MAD 3.62 billion for direct aid. The government is also preparing an extension beyond 2028, after an independent evaluation, with a target of at least 300,000 cumulative beneficiaries.

Example: a flat priced at MAD 650,000 qualifies for MAD 70,000 of aid, leaving MAD 580,000 to fund with your deposit and a loan. Conditions (first purchase, no property in Morocco, commitment to live in the home) and steps are in our guide to direct housing aid 2026.

Something new for tenants

The bill announces affordable rental housing for students, young workers, young households and employees moving for work. The State would make public land available to operators, who would have to respect rent caps and keep the homes rented for a set period. Rent levels, number of homes and timing are not yet known. The bill also plans to build or upgrade 100,000 rural homes over five years.

Property dealers: VAT on the margin from 1 July 2027

Today, property development, land subdivision and construction work are always subject to VAT, but the resale of buildings by property dealers is outside its scope. So a dealer who renovates a flat cannot recover the VAT paid on the work.

The bill creates an optional scheme (new article 125 sexies of the General Tax Code):

• it covers professionals who buy built property to resell it as is or after renovation;
• VAT is charged on the margin, meaning the sale price minus the purchase price and acquisition costs, at the standard 20% rate;
• the margin is counted including tax, so the VAT due is 20/120 of it;
• the dealer can deduct VAT paid on restoration or renovation work, never VAT on the purchase;
• invoices must state "Taxation under the margin scheme".

Illustration: a dealer buys an older flat for MAD 1,500,000 including costs and resells it for MAD 2,100,000. The margin is MAD 600,000 and the VAT due MAD 100,000. If the dealer paid MAD 100,000 of VAT on the works, nothing more is owed. With less work, the dealer pays the difference, so the option only pays off for major renovations.

For an individual buying from a dealer, nothing changes in the deed. The coming months will show whether the scheme encourages the renovation of older homes in city centres.

Registration duties: more security for deeds

No change to registration duty rates appears in the measures presented. Two procedural changes are worth knowing:

1. The registration certificate becomes general. Today it is mainly required to record a deed at the Land Registry. From 2027, it would be issued for every registered deed or contract, as proof that the formality was completed and duties paid. It is useful to check a preliminary contract or deed shown by a seller, a habit we recommend in our article on property scams in Morocco.
2. Old deeds can be regularised without penalties. Duties on an unregistered deed are time-barred after 10 years. If the parties still ask for registration, the bill applies the rate in force on that date, without penalties or late surcharges. This can help, for example, with old private deeds you want to put in order before a sale.

One more technical point: when a property gain or registration duty is reassessed, the competent local tax committee would be the one where the property is located.

Key takeaways if you are buying in 2027

• Do not delay a purchase hoping for lower duties or notary costs: the bill does not plan any.
• Run a new mortgage simulation in early 2027 with your new net salary.
• If you are aiming for housing aid, the 2027 budget is planned, but the detailed rules after 2028 are still to be set.
• Keep the registration certificate for every deed you sign.

Every situation is different: for a precise tax calculation or financing plan, talk to your notary, your bank or a tax adviser.

FAQ

When will the 2027 Finance Act take effect?

Most tax measures would apply from 1 January 2027, once both Houses have passed the law and it is published in the Official Bulletin. The VAT scheme for property dealers is planned for sales from 1 July 2027.

Does direct housing aid continue in 2027?

Yes. The bill funds it for 2027 with the same amounts: MAD 100,000 for a home up to MAD 300,000 and MAD 70,000 between MAD 300,000 and 700,000. An extension beyond 2028 is being prepared after an evaluation.

Will salaries under MAD 10,000 be exempt from income tax?

That is the government's stated goal. Technically, the bill exempts the first MAD 60,000 of annual net taxable income and sets a flat 45% deduction for work expenses, capped at MAD 35,000.

Will buying costs go down in 2027?

Based on the measures presented, no: registration duty rates and the tax on property gains stay the same. The changes concern the registration certificate and the regularisation of old deeds.

What is VAT on the margin for property dealers?

It is an optional scheme: a professional reselling a built property pays 20% VAT on the margin only (sale price minus purchase price and costs) and can deduct the VAT on renovation work.

Sources

• Médias24, PLF 2027: main proposed tax measures, 23 Oct 2026
• Médias24, Income tax cut phased in until 2031, 23 Oct 2026
• Le Desk, Salaries under MAD 10,000 exempt from 2027, 23 Oct 2026
• Le Matin, PLF 2027: main tax and customs provisions, Oct 2026
• LesEco, What the PLF 2027 offers the middle class, Oct 2026
• Le Brief, Social priorities estimated at MAD 62 billion, 23 Oct 2026
• Le Desk, Housing: purchase aid overtakes slum clearance, 25 Oct 2026
• Le Matin, Affordable rental housing for young people and students, Oct 2026
• Le Desk, Property dealers may opt for VAT on their margin, 24 Oct 2026
• Le Brief, First part adopted in committee, 12 Nov 2026

Find your home before 2027

With higher take-home pay and housing aid still in place, now is a good time to compare properties. Browse homes for sale or homes for rent on Immofind, and check your eligibility with our guide to direct housing aid.