Morocco's Interior Ministry cracks down on fraudulent social housing certificate networks

The Moroccan Ministry of Interior has issued stringent directives to authorities and department heads to combat the trafficking of administrative certificates related to social housing, specifically those used to lift state mortgages. These certificates are crucial for verifying that an applicant has used their apartment as their primary residence for four years.

Sources told Hespress that criminal networks have exploited the high demand for these certificates during the summer, particularly among Moroccan immigrants abroad. They have reportedly increased the price of obtaining a “housing certificate” to over 3,000 dirhams.

Recent actions by provincial and prefectural governors include heightened scrutiny of the procedures for acquiring administrative certificates required for the “lifting of the hand” from social housing. This process is governed by a mixed subsidy system that includes both VAT exemptions and direct housing support.

According to sources, these networks—comprised of brokers and complicit employees—have taken advantage of beneficiaries lacking national identification cards. They have manipulated addresses on housing documents to extract significant sums of money for facilitating the required certificates.

The law mandates that individuals seeking state support must not own additional property and must provide proof of this. Social housing buyers who benefit from VAT exemptions are prohibited from reselling their homes within four years of purchase. They must also obtain a “release of hand” certificate from the tax administration. Failure to adhere to these conditions results in a requirement to repay the VAT exemption, plus penalties and collection costs. Additionally, the property must be used solely as a primary residence and cannot be rented or repurposed, or the benefits are forfeited.

The Ministry’s latest actions address the growing issue of individuals buying state-subsidized social housing to rent or use as secondary residences, particularly in coastal cities. These individuals often seek brokers to obtain fraudulent housing certificates that falsely claim compliance with residency requirements.

In response to this issue, the General Directorate of Taxation has issued new instructions to enhance the verification of documents used to obtain “lifting of the hand” certificates. This is especially important in popular coastal areas where properties are bought to rent out during the summer season.

Social housing owners benefiting from VAT exemptions must apply to the tax authority four years post-acquisition to lift the mortgage on their property. They are required to provide a sales contract, national identity card with the residential address, or an administrative certificate proving their residency duration, along with receipts for collective service payments.