A. Legal and Regulatory Framework
A.1 Legal and Regulatory Framework
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Basis of the legal system: Civil, Common, Islamic, Other? (Describe) | Combination of Civil and Islamic law | Combination of Civil and Islamic law | Combination of Civil and Islamic law | GlobaLex | A.1.1 |
| Are there specific laws that deal with mortgages? | Yes | Yes | Moroccan Housing Department | A.1.2 | |
| Registration/Transfer of titles: | A.1.3 | ||||
| Does the law clearly define different types of property rights? | Yes | Yes | Yes | Country Editor | A.1.3.1 |
| Are property rights easily transferable? | Yes | Yes | Country Editor | A.1.3.2 | |
| Identify barriers to the registration/ transfer of property title. | The ease to transfer a property depends on whether it is registered or not. It also depends on the status of the land (Morocco has several land regimes) | The ease to transfer a property depends on whether it is registered or not. It also depends on the status of the land (Morocco has several land regimes). | The ease to transfer a property depends on whether it is registered or not. It also depends on the status of the land (Morocco has several land regimes). | DLA Piper | A.1.3.3 |
| Typical number of days needed for the transfer of title | 20.5 | 22 | 22 | World Bank | A.1.3.4 |
| Can liens be effectively enforced? | Yes | Yes | Yes | World Bank | A.1.4 |
| Number of months until lender acquires the property in case of foreclosure on a single-family residential property? | 12 | World Bank | A.1.4.1 | ||
| Main causes of inefficiencies (legal, judiciary, administrative, cultural, etc.) | Social (fear of consequences of eviction), legal (legal recourse for the household) and administrative (multiple and long steps) | La Viecco | A.1.4.3 | ||
| Are there legal constraints on the types of mortgage products that are permitted? | No | Country Editor | A.1.5 | ||
| Is there specialized legislation covering: | A.1.9 | ||||
| Issuance of covered mortgage bonds | No | Ministry of Finance | A.1.9.1 | ||
B. Housing Finance Subsidies
B.1 Subsidies to Housing Finance Institutions
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Are there subsidized funding sources for mortgage lenders? | Yes | Yes | Yes | B.1.1 | |
| Government supported liquidity facility | No | Country Editor | B.1.1.2 | ||
| Other | Yes | Yes | Country Editor | B.1.1.6 | |
| Is the lending side of the housing finance system subsidized? | Yes | Yes | Yes | B.1.2 | |
| Shared credit risk through public/private mortgage insurance | Yes | Yes | Country Editor | B.1.2.1 | |
| Guarantees for mortgage loans | Yes | Yes | Yes | B.1.2.2 |
B.2 Subsidies to Households
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Are there subsidies to households on housing finance? | Yes | Yes | Yes | B.2.1 | |
| Interest rate subsidies by special government funds | No | No | No | BMCE Bank | B.2.1.1 |
| Buy-down of monthly/interest payments | Yes | https://books.google.co.ma/books?id=sUhwmyzJwHIC, pg=PA33, lpg=PA33, dq=MOROCCO+subsidies+to+savings+for+mortgage+loans, source=bl, ots=omiYPK9hel, sig=ACfU3U2WbKAcI19t7e4OVWoYzJEHkPyp4A, hl=fr, sa=X, ved=2ahUKEwi9qIHa99nhAhXdAGMBHc9-BDIQ6AEwBXoECAgQAQ#v=snippet, q=savings, f=false | B.2.1.2 | ||
| Down-payment subsidies | No | BMCE Bank | B.2.1.3 | ||
| Subsidies to savings for mortgage loans | Yes | Ministry of Finance | B.2.1.4 | ||
| Mortgage interest deductibility from income tax | Yes | Yes | Yes | Country Editor | B.2.1.5 |
| Other | Yes | BMCE Bank | B.2.1.6 | ||
| Reach of subsidies in 2.1.1 to 2.1.4 ? | B.2.2 | ||||
| What proportion of loans on main residences is affected by the mortgage interest deductability in 2.1.5? | 100% | 100% | 100% | La Vieeco | B.2.3 |
C. Taxation
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| What taxes apply to Residential Real Estate? | C.1 | ||||
| Tax on property (home-owners) | Yes | Yes | Yes | C.1.1 | |
| Property transaction taxes (purchase/selling) | Yes | Yes | Yes | C.1.2 | |
| Mortgage transaction taxes | Not available | Country Editor | C.1.3 | ||
| Tax on mortgage interest pmts | Not available | Country Editor | C.1.4 | ||
| Tax on capital gains on property | Yes | Yes | Yes | Val Foncier | C.1.5 |
| Other | No | Country Editor | C.1.6 | ||
| Are there tax benefits on rental properties? | Yes | Yes | Yes | Ministry of Finance | C.2 |
| Describe tax benefits (if any) from C.1.2 | 40% of the income from rent is tax deductible. This has changed on January 1st, 2019. | 40% of the income from rent is tax deductible. | The Government of Morocco established tax benefits on rental of social housing units (the MAD 140k and MAD 250k types). Although these tax exemptions exist, the supply of such properties is very limited. | Ministry of Finance | C.2.1 |