Morocco’s land tax boosts city revenue, raises bills
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In Morocco, municipalities collected 2.81 billion dirhams from the undeveloped land tax (TNB) during the first seven months of 2026, a 48.9% increase over the previous year.
A 2025 law changed how the TNB is calculated, moving away from theoretical zoning to focus on actual infrastructure, roads, water, electricity, and public services, available around a property. Land in well-serviced areas now carries higher tax rates, while land with limited services may see lower bills.
This new system aims to address previous inconsistencies where plots with the same zoning classification could have vastly different levels of infrastructure. Previously, rates in Casablanca ranged from 4 to 20 dirhams per square meter for apartment zones and 2 to 12 dirhams for villa areas. Now, rates range from 0.5 to 30 dirhams per square meter depending on service levels, meaning a 1,000-square-meter plot could see its annual tax bill rise from 10,000 to 25,000 dirhams.
The reform is being rolled out gradually as municipalities map infrastructure and establish new rates, with some cities like Casablanca and Marrakech already implementing the changes. While the increased revenue benefits local authorities, developers have expressed concern that the tax doesn't differentiate between land held for speculation and land intended for future projects, potentially delaying development.
The Interior Ministry issued guidance to speed up implementation and address irregularities, but municipalities still face challenges with mapping and limited resources for reviewing exemption requests.
