Municipal services tax in Morocco: base, rate and payment

The municipal services tax (taxe de services communaux) funds the municipality’s services: roads, cleaning, street lighting. Governed by law 47-06 on local authority taxation, amended in particular by law 07-20, it applies to built properties, whether owner-occupied or let. It is one of the ownership taxes presented in property taxes in Morocco.

Who is concerned?

Unlike housing tax, it also applies to let homes, payable by the owner.

The calculation

The tax is calculated by applying a rate, set by law according to where the property is (urban perimeters or outlying areas), to the rental value or the rent. The allowances and exemptions for main homes and new buildings apply under the conditions of the law. Check the text in force or your tax notice for details.

Payment

It is generally issued by assessment roll and paid on receipt of the notice, notably at the Treasury General of the Kingdom, including online. Keep the receipts.

Before buying, before selling

• When buying: ask the seller for their receipts; the notary checks there are no arrears.
• When selling: the notary requires a certificate of payment of local taxes; see the local tax payment certificate.

For a let property, include the tax in your return calculation: see calculating rental yield and rental income tax. For an owner’s overall budget, see the annual cost of ownership.

Municipal services tax and housing tax compared

Example for a let property

You let a one-bedroom apartment for MAD 5,000 a month. The rent falls under rental income tax; housing tax is not due, but municipal services tax is, calculated under the law on the basis of the rent or the rental value. In your return calculation, count it among non-recoverable charges.

If your situation changes

Tell the local tax administration about changes that affect your tax: letting the home, taking it back to live in, major works, a sale. A situation that is not updated can lead to incorrect notices or arrears that will block your next sale.

A practical tip

If you do not receive a notice, ask the local tax administration or check the Treasury portal: not receiving it does not exempt you from paying.