Property and business sales: the additional 2% duty on untraceable payments

The Finance Act (Loi de Finances) 2026 added a paragraph III to article 133 of the General Tax Code (CGI). It creates an additional registration duty (droit d’enregistrement) of 2% on certain sales where the price is not paid in a traceable way. The measure applies to deeds drawn up from 1 July 2026.

Which transactions?

Deeds recording a sale or other transfer for value:

• of real property or rights in real property, where the price exceeds 300,000 dirhams (MAD);
• of a business (fonds de commerce), whatever the price.

The 300,000-dirham threshold therefore applies only to property. DGI circular (note circulaire) No. 737 confirms that the sale of a business is subject to the duty even below that amount.

When does the duty apply?

In either of these cases:

1. the deed does not state the payment methods and references used;
2. the price is not paid by one of the methods listed in article 11-II of the CGI: crossed non-endorsable cheque, bill of exchange, card or other electronic payment instrument, bank transfer, electronic payment process or set-off. The duty does not apply where the deed provides for payment through a bank loan, nor where the bank deposit provided for in article 193 of the CGI is used.

Where the price is paid partly in cash and partly by a traceable method, the additional duty applies only to the cash portion.

Examples

A flat sold for MAD 1,200,000, paid by bank transfer, with the transfer references stated in the deed: no additional duty.

The same flat, paid MAD 1,000,000 by transfer and MAD 200,000 in cash: additional duty of 200,000 × 2% = MAD 4,000, on top of the usual transfer duties.

A business sold for MAD 800,000 where the deed simply states “paid in cash outside the notary’s presence”, with no references: the additional duty applies to the full amount, i.e. MAD 16,000.

A plot of land sold for MAD 250,000 in cash: the price does not exceed MAD 300,000, so the measure does not apply. The other rules, in particular the review of declared prices, still apply.

Who pays?

The additional duty is borne by the buyer (article 183-A of the CGI), but all parties to the deed remain jointly and severally liable to the Treasury. Factor the extra cost into negotiations between the parties.

Why this measure?

Paying part of the price in cash, outside the deed, often goes hand in hand with under-declaring the price. This reduces the buyer’s registration duties and the seller’s tax on the property gain. Requiring traceable payments brings the declared price closer to the real one. The measure is part of a wider policy of reducing the use of cash and fighting fraud.

Practical advice

For buyers

• Arrange your financing so the full price can be paid by bank transfer or banker’s draft.
• Make sure the deed states precisely the method and references of each payment, including any deposit paid when the preliminary agreement was signed.

For sellers

• Insist on traceable payments: they also secure your property gains return and the evidence of where the buyer’s funds came from.
• For a business sale, coordinate payment with the creditor objection period and publication formalities.

For preliminary agreements signed before July

• A preliminary agreement signed before 1 July 2026 and completed by a final deed after that date is caught by the new rule, because what counts is the date the deed is drawn up. Plan the payment arrangements now.

Other 2026 changes to registration duties

• Share transfers in property companies and unlisted property-rich companies: 5% rate.
• Public contracts: mandatory registration at 0.1%, payable by the contractor, for deeds registered from 1 January 2026.

Our tax and legal team helps secure your purchases and sales of property and businesses. To discuss your situation, get in touch.