Real estate in Morocco: the Moroccan tax authorities on alert

The existence of new fraudulent practices has pushed the control services of the General Directorate of Taxes (DGI) to intensify their tax inspections against several real estate developers and companies specializing in the construction of luxury housing.

It all started from the declarations made by these promoters at the tax counters in Casablanca and Marrakech. Tax inspectors suspect manipulation of tax declarations and blocking of the “prior notice” mechanism provided for by article 234 bis of the General Tax Code. The “projects concerned are mainly located in residential areas whose town planning has been modified, in particular those where villas have been converted into residential buildings”, reports Hespressindicating that these transformations “were closely scrutinized by the tax authorities”. The latter noted serious inconsistencies in the declarations of the sale prices of real estate.