Highlights

The Minister of Economy and Finance chaired the ceremony of presenting a common reference framework of the Prices of Land and Property transactions of Casablanca : 12/06/2019

The Minister of Economy and Finance chaired the ceremony of presenting a common reference framework of the Prices of Land and Property transactions of Casablanca

Mr. Mohamed BENCHAABOUN, Minister of Economy and Finance, chaired Wednesday, June 12th 2019 in Rabat, the ceremony of presenting the common reference framework of the Prices of Land and Property transactions of Casablanca which will come into effect on July 1st 2019.

This Framework is part of a partnership agreement signed during this event by the Director General of Taxes (DGI), Mr. Omar FARAJ, and the Director General of the National Agency for Land Conservation, Cartography and Cadaster (ANCFCC), Mr. Karim TAJMOUATI.

During his speech, the Minister stressed that the aim of the agreement is to set a common reference frame between both administrations with regard to the prices of real estate and land transactions. He specified in this respect that the objective is to ensure more transparency when dealing with taxpayers. He also noted that this step aims to frame the discretionary power of the administration and give more guarantees to citizens and economic operators.

The Minister also stated that the purpose of this agreement is to set first a reference guide for Casablanca City as of July, which will be gradually generalized throughout the regions of the Kingdom within 12 months.

On the other hand, the Director General of the ANCFCC, asserted that the signed protocol is part of the government guidelines on the harmonization and standardization of procedures of administrations and State institutions to create a climate of partnership and trust with users. He explained thus that the Reference Guide consists of the minimum prices upon which the DGI and the ANCFCC settle the registration and the income tax duties related to the real estate profit.

Within this framework, the Director General of Taxes pointed out that these prices are indicative prices. He noted that the Common Reference Guide should not under any circumstances drive the market. He thus specified that this reference frame provides the basis for transparency and traceability for real estate and land transactions.

The president of the National Federation of Real Estate Developers (FNPI), Mr. Kamil TAOUFIK, welcomed the culmination of this important project that will now establish a "future business plan" and calculate in advance the rights and taxes due to the tax authorities. He also expressed his wish that the FNPI be involved in the future establishment of reference frames for other cities and regions.

The common reference framework of the prices of land and property transactions of Casablanca consists of an evolving and updated real estate and land market grid, based on the administrative structuring of the prefectures, districts of Casablanca and the Provinces of Nouaceur and Mediouna, and setting the prices at the level of 349 defined or linear areas (Boulevard / Avenue / Street) within the various districts and communes.

The prices in this reference set represent average prices noticed in the same area and for the same type of property. They are used as a basis for calculating Tax and the aforementioned rights and do not constitute a direct assessment of a real estate.

The Common Framework applies to real estate and land transactions involving properties used for residential, professional, commercial, industrial, tourist, artisanal and agricultural purposes. Social housing (LAS), with low total real estate value (FVIT) and those intended for the resettlement of slums are not involved.