Tax audits halt property sales as inheritance disputes take center stage in probe

Unexpected tax audits have frozen inheritance liquidation processes in Morocco, Hespress AR has learned from well-informed sources.

The Tawthiq platform has refused to process new property sale contracts for heirs due to outstanding real estate tax arrears. These issues stem from adjustments to the real estate capital gains tax (TPI) imposed on heirs following previous collective sales of inherited properties.

According to sources, many affected heirs have been forced to visit tax payment offices to resolve their outstanding dues before proceeding with their sales. Others have opted to delay their transactions due to the high tax liabilities they owe.

The tax collection department of the General Directorate of Taxes (DGI) has accelerated efforts to recover unpaid dues from inheritance-related real estate transactions. In some cases, authorities have moved to impose liens on additional properties owned by heirs, making it difficult for them to finalize their inheritance settlements without first clearing their tax debts, which they are required to pay jointly.

Disputes over the tax debt amounts have led some heirs to abandon planned sales of inherited assets altogether, as the owed taxes exceed the property’s value. As a result, these properties have been seized and auctioned off to the state treasury under the provisions of the Public Debt Collection Code.

The freezing of property transfers due to unpaid taxes has reinforced public debt collection measures, which the tax authorities have intensified. Transactions are now contingent on obtaining a quitus fiscal—a tax clearance certificate—confirming the settlement of all local taxes, including housing, sanitation, communal services, and undeveloped urban land taxes.

This requirement has disrupted numerous property sales among heirs, as tax obligations in such cases are collective. Even if individual heirs hold different shares of the inheritance, the law mandates full payment of the outstanding taxes before any sale can proceed.

According to Article 139(4) of the new General Tax Code, notaries, legal representatives, and other professionals involved in property transactions must verify that all applicable taxes on a property have been paid before finalizing a sale. Failure to do so could make them personally liable for the unpaid taxes, alongside the property’s seller.

The impact of these tax audits has also extended beyond inheritance disputes. Some property transfers have been blocked due to avis à tiers détenteur (ATD) notices—third-party garnishment orders—related to unpaid traffic fines and other outstanding tax debts. Many heirs have been surprised to learn from their notaries that they must settle these debts before completing property transactions.

Notaries now receive real-time notifications from the DGI and the Kingdom’s Treasury regarding tax liens and collection actions. These alerts are triggered as soon as a seller’s identity is declared on the Tawthiq.ma platform, whether the sale is an individual transaction or part of a collective inheritance settlement.