Morocco’s Finance Law 2026 introduces a significant change in real estate transaction requirements through Article 133-III of the General Tax Code. Starting July 1, 2026, buyers and sellers who fail to document traceable payment methods for real estate transactions exceeding MAD 300,000 will face an additional 2% registration duty. This measure targets cash-based transactions that lack banking documentation and represents a substantial shift in how property transfers must be structured.
penalty tax 2026
penalty tax 2026
penalty tax 2026
penalty tax 2026
penalty tax 2026
penalty tax 2026
penalty tax 2026
The new penalty applies alongside standard registration duties, meaning that parties using untraceable payment methods will pay both the base registration rate (typically 4-6% depending on property type) and the additional 2% surcharge. For a property sale of MAD 5 million conducted in cash, this translates to an extra MAD 100,000 in registration duties that could be avoided through compliant payment documentation.
Legislative framework and effective date
Article 133-III of the General Tax Code, as amended by Finance Law 2026, establishes the 2% supplementary registration duty. The provision took effect for all acts executed and registered from July 1, 2026 onward. Transactions closed before this date remain subject to the previous regime, which did not impose penalties based on payment method.
The legislative intent is explicit: discourage cash transactions in the real estate sector and create an auditable trail for all property transfers. Morocco’s Direction Générale des Impôts has clarified that the measure aligns with international standards on financial transparency and anti-money laundering frameworks established by the Financial Action Task Force.
Transactions subject to the 2% penalty
The supplementary duty applies to three categories of transfers when the transaction value exceeds MAD 300,000:
Real property transfers include sales of land, residential buildings, commercial buildings, and industrial facilities. Both titled properties registered at the Conservation Foncière and properties held under traditional ownership regimes (melkia) fall within scope.
Real property rights encompass transfers of usufruct rights, easement rights, superficie rights, and long-term lease rights when these rights are sold or transferred for consideration.
Business goodwill sales involving the transfer of fonds de commerce are subject to the penalty if payment methods cannot be traced through banking channels.
The MAD 300,000 threshold applies to the total transaction price, not to individual payment installments. A property sold for MAD 250,000 would not trigger the penalty even if paid entirely in cash, while a MAD 400,000 sale would face the 2% surcharge unless proper payment documentation is provided.
Acceptable payment methods under the new regime
The law recognizes four categories of traceable payment methods that avoid the 2% penalty:
Bank transfers executed through any licensed banking institution in Morocco create an automatic paper trail. The transfer order, bank statement, and beneficiary receipt together constitute sufficient proof of payment method.
Bank checks issued by licensed banks and cashed through the banking system satisfy the traceability requirement. Personal checks from individual accounts qualify if deposited through formal banking channels.
Electronic payments processed through card networks, mobile payment platforms, or digital banking services meet the standard. The electronic transaction record serves as documentation.
Financing letters from banks guaranteeing payment satisfy the requirement even if the actual disbursement occurs through the lending institution rather than the buyer’s direct payment.
Cash payments deposited to bank accounts before being transferred do not cure the traceability defect. The law requires that the payment method itself be inherently traceable, not that cash be channeled through banks after the transaction.
Notary obligations and deed execution
Moroccan notaries face strict obligations under the new framework. Before executing an authentic deed for any real estate transfer exceeding MAD 300,000, the notary must verify and document the payment method in the deed itself.
The notarial act must specify which traceable payment method was used, include reference numbers for bank transfers or checks, and contain a declaration from both parties confirming the payment method. If parties cannot provide adequate documentation, the notary must include a statement that payment traceability has not been established, which triggers the 2% surcharge when the deed is registered.
Notaries who execute deeds without verifying payment methods expose themselves to professional liability. The National Council of Notaries has issued guidance requiring systematic verification of bank attestations before deed signature.
Need assistance structuring compliant real estate transactions? Our legal team advises on payment documentation requirements and registration procedures. Contact Cabinet Lafrouji Avocats at +212 (5) 22 47 55 29.
Tax administration enforcement mechanisms
The Direction Générale des Impôts has established verification procedures to detect non-compliant transactions. When notarial acts are submitted for registration, tax officials examine the payment method declaration. Acts that acknowledge untraceable payment methods automatically incur the 2% penalty at registration.
The tax administration may also conduct post-registration audits. If officials determine that a transaction declared as using traceable payment methods actually involved cash or other untraceable mechanisms, retroactive penalties apply. The base 2% penalty is supplemented by late payment interest at statutory rates and potential additional fines for false declarations.
Foreign currency transfers present specific documentation requirements. When buyers transfer funds from abroad, they must provide the currency exchange certificate from the authorized Moroccan bank that received the international wire transfer. The certificate confirms that foreign currency entered Morocco through official channels and was converted to dirhams through the banking system.
Compliance strategies for foreign real estate buyers
International investors acquiring Moroccan property must structure transactions to meet traceability standards from the outset. The following practices ensure compliance:
International wire transfers from foreign bank accounts to the seller’s Moroccan bank account provide clear documentation. Buyers should retain copies of the SWIFT transfer confirmation, the Moroccan bank’s receipt acknowledgment, and the currency exchange certificate issued by the receiving bank.
Escrow arrangements through Moroccan banking institutions allow buyers to deposit funds with a bank that releases payment to the seller upon satisfaction of contractual conditions. The bank issues documentation confirming the deposit, holding period, and eventual transfer to the seller.
Notarized payment agreements that specify the exact payment method before the transaction closes help prevent disputes. If the preliminary sales agreement commits both parties to payment by bank transfer with specific account details, this prevents last-minute changes to cash payment that could trigger penalties.
Buyers should obtain written confirmation from their Moroccan bank that the proposed payment method satisfies legal traceability requirements. Banks familiar with real estate transactions can review the payment structure and provide attestations that notaries will accept.
Integration with anti-money laundering requirements
The 2% penalty complements Morocco’s broader anti-money laundering framework. Law 43-05 on combating money laundering requires real estate professionals, including notaries and real estate agents, to identify beneficial owners of transactions and report suspicious activities to the Financial Intelligence Unit.
Real estate transactions involving cash payments above certain thresholds already trigger enhanced due diligence obligations under anti-money laundering regulations. The new 2% penalty creates a tax incentive that reinforces these compliance obligations by making cash transactions financially disadvantageous.
For foreign investors, the overlap between tax requirements and anti-money laundering rules means that proper structuring addresses both concerns simultaneously. Transactions conducted through banking channels with full documentation of fund origins satisfy both the tax traceability standard and anti-money laundering customer due diligence requirements.
Morocco’s participation in the Financial Action Task Force and its commitment to meeting international standards on financial transparency inform these regulatory developments. The real estate sector, historically vulnerable to money laundering risks, now faces multiple legal mechanisms encouraging transparent transactions.
Practical transaction timeline adjustments
The payment documentation requirement extends transaction timelines. Buyers arranging international wire transfers should account for processing delays at both the sending and receiving banks. Cross-border transfers typically require 3-5 business days, though some jurisdictions may impose additional compliance review periods.
Currency exchange documentation adds another procedural step. After funds arrive in Morocco, the receiving bank must issue a currency exchange certificate. This document is necessary for the notarial deed and subsequent registration, so buyers should request it immediately upon fund receipt.
Coordination between buyer, seller, banks, and notary becomes essential. The notary cannot execute the deed until receiving confirmation of traceable payment, so all parties must synchronize their actions to avoid closing delays. Preliminary sales agreements should specify that payment method documentation will be provided at least 48 hours before the scheduled deed execution date.
Impact on property investment returns
The 2% penalty has material implications for investment calculations. On a MAD 10 million property purchase, the penalty amounts to MAD 200,000 in additional costs that could be avoided through compliant payment structuring. This represents a direct reduction in investor returns.
Real estate developers selling multiple units must ensure that all buyers understand the payment documentation requirements. A developer closing 20 apartment sales in a month cannot afford to have buyers arrive at the notary with cash, as this would impose the penalty on each transaction.
Foreign investors should incorporate potential compliance costs into their acquisition budgets. While the 2% penalty is avoidable through proper planning, the administrative costs of arranging international transfers, obtaining bank attestations, and coordinating with notaries represent incremental transaction expenses.
Specialized legal counsel for foreign real estate investors in Morocco
Navigating Morocco’s evolving real estate transaction regulations requires detailed knowledge of tax law, notarial procedures, and banking requirements. The interaction between registration duties, anti-money laundering obligations, and currency exchange controls creates complexity that foreign investors must address systematically.
Cabinet Lafrouji Avocats provides comprehensive legal services for international real estate buyers:
- Transaction structuring: Design payment mechanisms that satisfy traceability requirements while minimizing costs and delays
- Banking coordination: Liaison with Moroccan financial institutions to arrange wire transfers, escrow accounts, and documentation
- Notarial procedure management: Preparation of all required attestations and coordination with notaries to ensure smooth deed execution
- Registration compliance: Verification that all documentation meets Direction Générale des Impôts standards before submission
- Currency regulations: Guidance on Office des Changes requirements for foreign fund transfers and repatriation rights
Our legal team maintains current knowledge of tax administration enforcement practices and regularly advises foreign clients on compliant transaction structures. We work with international investors, real estate developers, and corporate buyers to structure acquisitions that avoid unnecessary penalties while protecting investment security.
Contact us for a consultation on your Moroccan real estate transaction:
Cabinet Lafrouji Avocats
64 rue Taha Houssein
20000 Casablanca – Maroc
Téléphone: +212 (5) 22 47 55 29
Email: contact@lafroujiavocats.com
Legal disclaimer: This article provides general information about Moroccan tax law and does not constitute legal advice. Real estate buyers should consult qualified legal counsel to assess their specific circumstances and develop compliant transaction structures.
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