Reforming the Tax on Unbuilt Land Faces Field Challenges in Morocco
Circular No. 323.G.2 came into effect on March 5, 2026, to impose the tax on unbuilt land (TTNB) on legally unclassified urban lands in cities such as Marrakech, Tangier, and Fes. The circular aims to correct past excesses and ensure that the tax is applied only to lands within urban perimeters, tourist areas, and officially approved development projects.
Despite the clear legal direction, practical implementation faces significant challenges due to a lack of technical infrastructure among local governments, especially in rural areas, where most lack precise maps and geographic information systems (GIS). This lack of prior classification of land parcels complicates the implementation of the circular on the ground.
The circular has also introduced new procedures for exemptions and penalties, requiring landowners to provide documents proving their eligibility for exemptions, and governors to execute court rulings to cancel illegal taxes. However, limited human resources and the disruption of some committees have delayed the processing of files, potentially harming the rights of small landowners and increasing regional disparities.
The new graduated tax system, linked to the level of facilities in each area, is directly related to the technical classification of lands, limiting its effectiveness in the absence of necessary infrastructure and budgets. Thus, the TTNB emerges as a reflection of the gaps between major cities and less well-equipped areas, with the implementation of legal reform contingent upon the administrative capabilities of local municipalities.
