MOROCCO Law and Practice Contributed by: Loris Marghieri, Dounia El Aissaoui, Julien Nouchi and Mounia Larhrissi, Gide Loyrette Nouel
cific real estate project, building, premises or apartment. 6.8 Costs Payable by a Tenant at the Start of a Lease Under Moroccan law, tenants do not incur addi - tional costs at the start of a lease, except for a registration duty of MAD200 payable to the tax administration. Lease registration with tax authorities is mandatory within 30 days of exe - cution. While the tax code does not specify who must pay this fee, it is generally market practice for the tenant to bear the cost. 6.9 Payment of Maintenance and Repair The tenants generally bear the maintenance and repair costs for common areas by way of service charges, in proportion to the area of the prem - ises occupied by each tenant relative to the total area of the property. 6.10 Payment of Utilities and Telecommunications Parties are free to determine which of them will pay the operating fees (eg, electricity, water, telecommunications and other utilities), but the utility costs are generally borne by each tenant according to their specific needs and usage. 6.11 Payment of Property Taxes Property tax responsibility depends on lease terms, but general rules apply. For individuals, the taxe d’habitation applies to buildings used as a main home or by relatives. It is levied on the owner (or usufructuary) or, if absent, on the pos - sessor or occupant. The taxable rental value is determined by comparison and reduced by 75% for the main home, with a 2% increase every five years. The tax rate ranges from 0% to 30%, with 30% applying if the rental value exceeds
MAD40,000. Companies and professionals rent - ing premises are subject to business tax ( taxe professionnelle ) and municipal tax ( taxe des ser - vices communaux ), as detailed in 8.3 Municipal Taxes . 6.12 Insurance Issues In Morocco, landlords and tenants typically sub - scribe to various insurance policies to safeguard their interests under a lease agreement. For landlords, typical policies include the follow - ing: • Assurance propriétaire non occupant: This type of property insurance covers the land - lord’s property against risks such as fire, theft and natural disasters. It is designed for landlords who do not reside in the property themselves. • Responsabilité civile propriétaire: Liability insurance for landlords protects them in case a tenant or visitor is injured on the property and files a claim for damages. It covers legal expenses and compensation for bodily injury or property damage. • Assurance loyers impayés This insurance protects landlords against the risk of rental income loss due to tenant non-payment of rent. It typically covers unpaid rent and legal expenses associated with eviction proceed - ings. For tenants, typical policies include the follow - ing: • Assurance multirisque Renter’s insurance provides coverage for the tenant’s personal belongings inside the rental property and includes liability coverage for damages caused to third parties.
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