Casablanca – Morocco’s General Directorate of Taxes has issued a clear reminder to all property owners and beneficiaries across the country to regularize their tax status and submit declarations related to the housing tax and municipal services tax before January 31, 2026. The notice covers any changes made to properties during the 2025 fiscal year, including new constructions, property extensions, changes in ownership, or modifications in the designated use of the property.

According to official sources, the measure is part of ongoing efforts by Moroccan financial authorities to maintain an accurate property tax base and ensure that local government budgets receive due revenues from these taxes. Filing the declarations on time is crucial to avoid fines or additional charges resulting from late submissions or failure to declare.

Scope and legal framework

The obligation applies specifically to properties that have undergone substantial changes requiring reporting to the tax administration. This includes, among others, new construction, additions to existing buildings, property sales, inheritance transfers, or converting a property’s purpose from residential to professional or commercial use, or vice versa.

The requirement is grounded in Law No. 47-06 on Local Government Taxation, particularly Articles 30 and 38, which define the duties of property owners and occupants in relation to municipal taxes. Taxpayers must submit a separate declaration for each property at the tax office responsible for the location of the property to ensure accurate recordkeeping and avoid jurisdictional overlaps.

Understanding the taxes

Morocco’s property taxation system distinguishes between two primary types of levies:

1. Housing tax – Previously known as the urban tax, this applies to residential properties and is paid by the person actually occupying the property, whether they are the owner or a tenant. The revenue generated is allocated to local government budgets. Notably, primary residences benefit from a 75% reduction of the estimated annual rental value, reducing the financial burden compared to secondary homes or rental properties.
2. Municipal services tax – Formerly referred to as the cleanliness tax, this levy funds essential municipal services such as waste collection, street cleaning, and maintenance of public lighting. Unlike the housing tax, the obligation falls on the property owner or the beneficiary of the property, not the tenant. It is calculated as a fixed percentage of the estimated rental value, usually 10.5% for urban areas and 6.5% for surrounding areas, and does not benefit from the 75% reduction applied to the housing tax.

Both taxes are calculated based on the estimated annual rental value of the property, determined by official assessment committees using criteria such as location, size, and construction quality. This valuation serves as the foundation for ensuring fairness and transparency in tax collection.

Administrative procedures and digital access

The Directorate emphasizes that taxpayers must file a distinct declaration for each property under their ownership or use. Official forms, including the ADP060 form for reporting new constructions, additions, changes in ownership, or purpose, are available online through the General Directorate of Taxes’ official website (www.tax.gov.ma). This digital approach is part of Morocco’s broader strategy to streamline administrative procedures, reduce in-person visits, and facilitate compliance.

Importance of compliance

Meeting the January 31 deadline is essential to avoid additional financial burdens. Late declarations or non-compliance can result in fines and penalties, which may substantially increase the amount due. Timely compliance contributes to local government revenues, enabling municipalities to maintain and improve public services and infrastructure, particularly in urban and rural areas.

The Directorate’s communication highlights the critical role of property taxes in funding municipal services and underscores the broader objective of modernizing tax administration through digital solutions. By ensuring that property owners declare changes accurately and on time, the authorities aim to enhance the efficiency and transparency of Morocco’s fiscal system while supporting local communities.