Significant Tax Changes for Luxury Vehicles in Morocco
Morocco is set to implement new tax increases on luxury vehicles priced over 400,000 MAD, excluding VAT, in accordance with provisions outlined in the draft Finance Law for 2027. This new tax regime will apply to all vehicles registered for the first time in the kingdom or imported into Morocco, starting from January 1, 2027.
Gradual Increase Based on Vehicle Value
The proposed tax increase varies depending on the investment value of each vehicle. Specifically, the tax rate will rise from 5% to 6% for cars priced between 400,000 and 600,000 MAD. For vehicles within the price range of 600,000 to 800,000 MAD, the tax will increase from 10% to 12%. Furthermore, for cars valued between 800,000 and 1,000,000 MAD, the rate will escalate from 15% to 18%. The highest tax increase will apply to luxury vehicles exceeding 1,000,000 MAD, with rates jumping from 20% to 24%.
In light of these new tax measures, the draft legislation also includes specific exemptions aimed at preparations for the 2030 World Cup. Notably, vehicles associated with the Fédération Internationale de Football Association (FIFA) and its affiliates, as well as the Royal Moroccan Football Federation and participating football unions, will be exempt from the annual vehicle property tax. This exemption, designated for "World Cup vehicles," will last for a full six years, commencing in 2027 and concluding at the end of 2032. Additionally, vehicles owned by authorized dealers will continue to benefit from tax exemptions as stipulated in the General Tax Code.
