Morocco is entering a pivotal phase in modernizing its local fiscal framework. Enacted by Parliament in 2025 and published in the Official Bulletin in June 2025, Law No. 14-25, which amends Law No. 47-06 on local governments’ taxation, institutes a sweeping overhaul of the Tax on Unbuilt Land (TNB). A circular from the Ministry of Interior dated August 5, 2025 clarifies the modalities of application.
Atlasimmobilier breaks down what these changes mean for landowners starting in 2026.
A Tax Based on Real Infrastructure, Not Theoretical Zoning
Historically, the TNB was calculated according to theoretical zoning categories (villa area, collective housing zone, etc.). This led to many inconsistencies: poorly serviced lands sometimes paid high taxes, while well-equipped ones benefited from lower rates.
The 2025 reform abandons that model. Going forward, the tax will depend on the actual level of equipment on the land: roads, potable water, electricity, sanitation, street lighting, public services, transport, etc.
This shift aims to bring greater fiscal fairness and to incentivize the development or transfer of idle land.
Three New Equipment-Based Zones
The August 5, 2025 circular introduces a standardized classification across all municipalities. Each commune must assess its infrastructure and classify sectors into three levels:
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Well-equipped zone: 15 to 30 MAD/m²
(roads, water supply, electricity, sanitation, street lighting, health and education facilities, waste collection, urban transport)
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Moderately equipped zone: 5 to 15 MAD/m²
(road access and networks for water and electricity)
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Poorly equipped zone: 0.5 to 2 MAD/m²
This new grid replaces old tax bands tied to urban zoning, making the link between infrastructure quality and tax burden explicit.
A Concrete Example
Consider a 1,000 m² plot previously taxed at 10 MAD/m² → 10,000 MAD/year.
If reclassified into a well-equipped zone at 25 MAD/m², its tax jumps to 25,000 MAD/year.
Conversely, an under-equipped or remote land could see its tax burden decrease.
The reform thus encourages the activation or disposal of idle land and aims to discourage land hoarding.
Phased Rollout, Commune by Commune
Implementation won’t be simultaneous nationwide. Each commune must:
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Map its infrastructure
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Classify sectors per the circular’s criteria
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Adopt a fiscal decree fixing precise rates within legal ranges
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Obtain approval from the governor, as supervisory authority
New rates take effect as of 1 January following the decree’s validation. Some communes may apply the reform in 2026, others later.
How to Know Your Land’s Category
To anticipate the impact, landowners should:
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Contact the local tax/municipal services
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Check official postings or the commune’s website
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Request a land-use or urban planning note
Until the new classification is validated, the old taxation regime remains in force. Active monitoring is key.
Exemptions: The Regime Remains Stable
The reform does not alter the exemption regime set by Law No. 47-06 (Articles 41-43). Permanent exemptions still apply to:
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Land owned by the state, local governments, or habous
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Guich/collective lands under special status
Temporary exemptions continue for:
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Lands lacking either water or electricity (one suffices)
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Lands under construction prohibition
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Lands subject to a valid permit to build or subdivide during its valid period
Required documentation (urban planning note, utility attestations, permit copies, etc.) remains mandatory. The reform also introduces an automatic exemption if the computed amount is under 200 MAD.
Taxable Surface: Important Caveat
Some municipalities may calculate the TNB on the full parcel area as recorded, including non-taxable portions (road easements, future public spaces, servitudes).
To avoid overpayment, it is strongly recommended to have a certified plan by a licensed surveyor specifying the truly taxable surface.
Declaration & Collection: Unchanged Deadlines
Owners must still declare and pay the TNB by 1 March each year.
Collection is handled by the communal tax collector or revenue officer.
The new law 14-25 reassigns (or limits) the role of public accountants in this process.
A digital platform for online declaration and payment is under development but not yet operational.
Broader Impacts: Urban Planning Meets Fiscal Logic
Beyond tax mechanics, this reform shapes the urban planning incentives of municipalities.
By tying revenue to infrastructure, communes may prioritize investment in zones that maximize future tax yield — potentially leading to spatial disparities if not managed equitably.
For landowners, this reform must now enter into every decision about land use, sale, or development.
Atlasimmobilier Advice
To foresee the fiscal outcomes on your land, assess its potential classification now.
Our teams in Marrakech and Essaouira are ready to help with land portfolio analysis and fiscal strategy planning.
Contact: [email protected]
Website: www.atlasimmobilier.com
Legal References:
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Law No. 47-06 on local taxation (Official Bulletin No. 5480, 6 August 2006)
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Law No. 14-25 amending Law 47-06 (Official Bulletin No. 7310, 24 June 2025)
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Ministry of Interior Circular No. DCL/2025/85 of 5 August 2025
