Syndic accounting in Morocco: the practical guide
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You manage a co-ownership in Morocco and the accounting is giving you headaches? You're not alone. Since Décret 2.23.700 came into effect, every syndic (property manager or HOA manager) must produce financial documents in a specific format. This guide explains what to do, based on the size of your co-ownership, without unnecessary jargon.
What accounting must a syndic maintain in Morocco?
Article 24 of Law 18-00 requires the syndic (property manager) to maintain separate accounts for each co-ownership.Funds must be deposited into a dedicated bank account (Article 26), separate from the syndic's personal accounts. The accounting must be kept on an accrual basis, not simply cash-based.
What this means in practice: when you call a 500 MAD charge to a co-owner in January, you record it in January, even if they pay in March. The receivable exists from the moment the charge is called. The payment will settle it later.
Décret 2.23.700 goes further:
Published in the Official Bulletin no. 7391 on March 31, 2025, it specifies the exact format of documents the syndic must produce each year. No more room for improvisation: the annexes are standardized, and their number depends on the size of the co-ownership.
How does Décret 2.23.700 work for accounting?
Décret 2.23.700 classifies co-ownerships into 3 tiers based on the annual amount of charges called. Not the property value. Not the number of units. Not the voted budget. The charges actually called to co-owners.
Each tier has its own accounting annexes. The higher the charges, the more detailed the required documents. It makes sense: a co-ownership handling 600,000 MAD per year needs more transparency than a small residence at 100,000 MAD.
The syndic must present these documents at the annual general meeting. Co-owners vote on account approval and the following year's budget. Without these annexes, the accounts can't be validly approved.
Important point:
The tier threshold is calculated on charges called, not on the projected budget. If your budget forecasts 180,000 MAD but you called 210,000 MAD (with an exceptional call for works), you move to the medium tier for that fiscal year.
What are the 3 co-ownership tiers?
Décret 2.23.700 defines exactly 3 tiers. Not four, not five. Three. The sole criterion is the total amount of charges called over the fiscal year.
| Tier | Threshold (charges called) | Required annexes |
|---|---|---|
| Small | ≤ 200,000 MAD | 10, 13-1, 13-2 |
| Medium | > 200,000 and < 500,000 MAD | 10, 11, 12 |
| Large | ≥ 500,000 MAD | 3, 4, 5, 6, 7, 8, 9, 10 |
The majority of co-ownerships in Morocco fall into the first or second tier. Large co-ownerships (residential complexes, residences with pools, 24-hour security and multiple elevators) are the only ones required to provide all 8 complete annexes.
What accounting documents must a syndic produce?
The required documents depend directly on your co-ownership's tier. Here are the details for each level.
Small co-ownership (≤ 200,000 MAD)
- 10Co-owner Contribution Tracking (تتبع إسهامات المالك المشتركين)
- 13-1Very Simplified Financial Position (الحصيلة المبسطة جداً)
- 13-2Very Simplified Income & Budget (الإيرادات والميزانية المبسطة جداً)
Medium co-ownership (> 200,000 and < 500,000 MAD)
- 10Co-owner Contribution Tracking (تتبع إسهامات المالك المشتركين)
- 11Simplified Statements (القوائم المبسطة)
- 12Simplified Income & Budget (الإيرادات والميزانية المبسطة)
Large co-ownership (≥ 500,000 MAD)
- 3Financial Position Statement (الحصيلة)
- 4General Management Account (حساب التسيير العام)
- 5Budget Comparison (مقارنة الميزانية)
- 6Non-Current Works Tracking (الأشغال غير الجارية)
- 7Reserve Fund Tracking (صندوق الاحتياط)
- 8Loan Tracking (تتبع القروض)
- 9Equipment Tracking (تتبع المعدات)
- 10Co-owner Contribution Tracking (تتبع إسهامات المالك المشتركين)
Annex 10 is common to all tiers. It's the foundational document: it tracks for each co-owner the amounts called, payments received, and the balance.
How to automate co-ownership accounting?
A co-ownership management software automatically generates annexes from the data entered daily. You record payments received, expenses incurred, charges called. The software does the rest.
With Kassaba, the process is simple. You enter your transactions throughout the year. At year-end, the software determines your co-ownership's tier and generates the corresponding annexes in the format specified by Décret 2.23.700. No manual formatting, no risk of forgetting anything.
What automation changes:
- • Totals are calculated without formula errors
- • Annex formats are always compliant
- • Data is consistent across documents
- • Generation takes seconds instead of hours
- • The risk of forgetting an annex disappears
Syndic accounting obligations (Articles 24 and 26)
Law 18-00 leaves no room for interpretation. The syndic's accounting obligations are explicit. Volunteer or professional, the rules are identical.
The separate bank account (Article 26)
This is the first obligation, and the most fundamental. Article 26 requires the syndic to open a bank account in the name of the co-ownership. Not a personal sub-account. Not an account in the syndic's name with a "co-ownership" note. A real separate account.
Why is this so important? Because mixing personal funds with co-ownership funds makes verification impossible. In case of a dispute, the syndic can't prove that the co-ownership money wasn't used for other purposes. And co-owners can't verify that their payments went to the right place.
Accrual accounting (Article 24)
Article 24 requires accrual-based accounting. In practice, you record transactions when they arise, not when money changes hands. A January charge call is recorded in January, even if the co-owner pays in April.
It's the same approach as business accounting. It gives a true picture of the financial situation at any time: what's owed, what's owed to us, what's in the bank.
Annual budget and presentation at the general meeting
- Prepare a projected budget: estimate regular charges for the coming year (security, cleaning, electricity, insurance, maintenance).
- Submit accounts at the general meeting: the balance sheet for the closed fiscal year and the following year's budget must be presented and voted on.
- Keep supporting documents: each expense must have an invoice, receipt or bank statement.
- Collect charges: the syndic is responsible for collection, including through legal action if necessary. Receivables expire after 5 years (Article 43).
Key takeaway:
Budget approval requires a 3/4 majority of all co-owner votes (Article 21). Not just those present. All co-owners. A qualified majority, which makes proxies and absent co-owner participation very important.
The 3 tiers of Décret 2.23.700 in detail
Let's go through the tiers with concrete examples so you can identify where your co-ownership fits.
A residence of 8 to 20 apartments, with a guard, common area cleaning and electricity. Monthly charges around 100 to 300 MAD per unit, the most common case in Morocco.
Annexes to produce:
Annex 10 (Contribution Tracking) + Annex 13-1 (Very Simplified Financial Position) + Annex 13-2 (Very Simplified Income & Budget)
A residence of 30 to 80 units, with an elevator, reinforced security, maintained gardens, possibly an underground parking garage. Monthly charges around 300 to 600 MAD per unit.
Annexes to produce:
Annex 10 (Contribution Tracking) + Annex 11 (Simplified Statements) + Annex 12 (Simplified Income & Budget)
A large-scale residential complex, with multiple buildings, a pool, gym, 24-hour security, multiple elevators and a large staff. Charges often exceed 1,000 MAD per unit per month.
Annexes to produce:
Annexes 3 to 10 (8 documents): Financial Position Statement, Management Account, Budget Comparison, Works, Reserve Fund, Loans, Equipment, Contributions
Reminder:
The calculation basis is charges called, not the projected budget. If exceptional works push calls above 200,000 MAD, your co-ownership temporarily moves to a higher tier for that fiscal year.
The accounting annexes of Décret 2.23.700
Each annex has a specific purpose. Here's what each one contains and what it's used for in practice.
Annex 3: Financial Position Statement (الحصيلة)
The co-ownership's balance sheet. On one side, what the co-ownership owns (cash, receivables from co-owners). On the other, what it owes (unpaid suppliers, loans). The difference gives a snapshot of the financial health at the closing date.
Tier: Large (≥ 500,000 MAD)
Annex 4: General Management Account (حساب التسيير العام)
The detail of all income and expenses for the fiscal year. How much came in, how much went out, for which line items. Co-owners scrutinize this one the most at the general meeting.
Tier: Large (≥ 500,000 MAD)
Annex 5: Budget Comparison (مقارنة الميزانية)
Compares what was planned in the budget with what was actually spent. Line by line. If you budgeted 60,000 MAD for security and spent 72,000 MAD, it shows up here. It's a powerful transparency tool.
Tier: Large (≥ 500,000 MAD)
Annex 6: Non-Current Works Tracking (الأشغال غير الجارية)
Tracks exceptional works: roof repair, elevator replacement, facade renovation. For each project: estimated cost, committed amount, amount paid, remainder due. This document helps track major projects across multiple fiscal years.
Tier: Large (≥ 500,000 MAD)
Annex 7: Reserve Fund Tracking (صندوق الاحتياط)
Tracks reserve fund movements: how much was provisioned, how much was used (and for what), what the balance is. The reserve fund covers unexpected expenses and future major works.
Tier: Large (≥ 500,000 MAD)
Annex 8: Loan Tracking (تتبع القروض)
If the co-ownership has taken out a loan (for major works, for example), this document tracks the remaining principal, payments made and upcoming. Few co-ownerships in Morocco use loans, but the document exists for those that do.
Tier: Large (≥ 500,000 MAD)
Annex 9: Equipment Tracking (تتبع المعدات)
An inventory of common equipment: elevators, pumps, automatic gates, security cameras. For each piece of equipment: acquisition date, value, condition. It helps plan replacements and maintenance.
Tier: Large (≥ 500,000 MAD)
Annex 10: Contribution Tracking (تتبع إسهامات المالك المشتركين)
The universal document, required for all tiers. For each co-owner: amounts called, payments received, balance. It's the foundation of all co-ownership accounting.
Tier: All
Annex 11: Simplified Statements (قوائم تركيبية نظام مبسط)
A lighter version of the balance sheet and management account, designed for medium-sized co-ownerships. Fewer columns, less detail than Annexes 3 and 4, but a clear view of the financial situation.
Tier: Medium (> 200,000 and < 500,000 MAD)
Annex 12: Simplified Income & Budget (الإيرادات والميزانية المبسطة)
Compares income to expenses in a simplified way, alongside the projected budget. Designed for medium co-ownerships that don't need the level of detail in Annex 5.
Tier: Medium (> 200,000 and < 500,000 MAD)
Annexes 13-1 and 13-2: Very Simplified Statements
13-1 (الحصيلة المبسطة جداً): a minimal balance sheet, one page, with just the essentials: cash, receivables, debts.
13-2 (الإيرادات والميزانية المبسطة جداً): income, expenses and budget in a very condensed format.
Designed for small co-ownerships, these annexes are intentionally simple. A volunteer syndic can fill them out without accounting training.
Tier: Small (≤ 200,000 MAD)
Projected budget and charge management
The projected budget is the co-ownership's financial roadmap for the coming year. The syndic prepares it, the general meeting votes on it, and charges are called based on it.
How to prepare the budget
Start from the previous year's actual expenses. Adjust for items that will change: guard salary increase, new cleaning contract, electricity price hike. Add a margin for contingencies (5 to 10% is reasonable).
Typical regular line items
- • Security / guard
- • Common area cleaning
- • Common area electricity and water
- • Building insurance
- • Elevator maintenance
- • Landscaping
- • Minor repairs
Exceptional line items
- • Roof repair
- • Elevator replacement
- • Facade renovation
- • Electrical upgrades
- • Terrace waterproofing
- • Security camera installation
- • Lobby renovation
Voting on the budget at the general meeting
The budget is submitted for a vote at the general meeting. Approval requires a 3/4 majority of all co-owner votes (Article 21). This isn't the majority of those present, it's the majority of all co-owners. That's why proxies are so important.
If the budget is rejected, the syndic must call another general meeting to propose a revised budget. In the meantime, charges continue to be called based on the previous budget.
Calls for funds
Once the budget is voted, the syndic distributes charges among co-owners according to their tantiemes (ownership shares). Calls are generally quarterly or monthly. Each co-owner receives an amount proportional to their share.
Concrete example:
Voted annual budget: 120,000 MAD. The co-ownership has 1,000 total tantiemes. A unit with 50 tantiemes pays: (50/1000) x 120,000 = 6,000 MAD/year, or 500 MAD/month. This amount is the monthly charge call for that unit.
Spending too much time on your co-ownership's accounting?
Kassaba automatically generates annexes compliant with Décret 2.23.700. Explore the interface with no commitment.
How Kassaba simplifies accounting compliance
Kassaba is a co-ownership management software designed for the Moroccan context. It doesn't replace the syndic or the accountant. It automates what can be automated, so the syndic can focus on management rather than formatting.
Automatic tier detection
Based on charges called during the fiscal year, Kassaba determines whether your co-ownership is small, medium or large. No need to calculate it yourself. If your tier changes from one year to the next (due to exceptional works, for example), the software adapts.
Compliant annex generation
At year-end, one click generates the required annexes for your tier. The format follows the Décret 2.23.700 specifications. Totals are calculated automatically from data entered throughout the year. You can export to PDF for the general meeting.
Real-time contribution tracking
Annex 10 (Contribution Tracking) builds up over the course of the year. Each payment recorded updates the co-owner's balance. At year-end, the document is already ready. Each co-owner can check their own statement from their phone.
Reports for the general meeting
Beyond regulatory annexes, Kassaba produces readable summary reports: cash position, unpaid balance status, budget vs. actual comparison. These documents are ready to be attached to the meeting notice or presented during the general meeting.
Common mistakes in syndic accounting
Even with the best intentions, certain mistakes come up again and again. Here are six we see regularly, with the consequences and solutions.
1Getting the tier wrong
Calculating the threshold based on the voted budget instead of charges called. Or forgetting exceptional calls for works. Result: the wrong annexes are produced, and the accounts can be invalidated at the general meeting.
Solution: Calculate based on total charges actually called, including calls for works. Verify at year-end.
2Missing annexes
Producing the Contribution Tracking (Annex 10) but not the other required documents. A large co-ownership that only provides Annex 10 isn't compliant.
Solution: Check the tier table above. Tick off each annex before finalizing your year-end documents.
3No separate bank account
Using a personal account for co-ownership funds, the most serious and most common violation. Article 26 is clear: funds must be in a dedicated account.
Solution:Open a bank account in the co-ownership's name as soon as you take office. Most Moroccan banks offer this type of account.
4Not having the budget voted at the general meeting
Calling charges without the budget being approved by the general meeting. Co-owners can challenge the calls if the budget wasn't voted by the required majority (3/4, Article 21).
Solution: Always put budget approval on the annual general meeting agenda. Prepare the numbers in advance to make voting easier.
5Cash accounting instead of accrual
Recording transactions only when money comes in or goes out, instead of recording them at the date of commitment. Consequence: the receivables status (who owes what) is wrong, and the annexes don't reflect reality.
Solution: Record charge calls at their issue date, and payments at their receipt date. Management software does this automatically.
6Discarding receipts
Paying a service provider in cash without requesting an invoice, or losing receipts. Without supporting documents, expenses are unverifiable and co-owners can challenge them.
Solution: Photograph each invoice immediately. Store them in a digital folder (cloud or software). Prefer traceable bank transfers.
Frequently asked questions about syndic accounting in Morocco
What risks does a syndic face for not complying with Décret 2.23.700?
Décret 2.23.700 doesn't introduce specific criminal penalties. However, a syndic who fails to provide the required accounting documents faces potential challenges at the general meeting, denial of quitus (discharge), and liability claims from co-owners. A co-owner can request in court the removal of a syndic who fails to meet accounting obligations.
Can a volunteer syndic handle the accounting alone?
Yes, provided they follow the rules of the decree. For a small co-ownership (≤ 200,000 MAD in charges), the obligations are simplified: only 3 annexes. A spreadsheet or suitable software is enough. For medium or large co-ownerships, the complexity increases and the help of an accountant or specialized software becomes highly recommended.
When does a co-ownership's fiscal year start?
The co-ownership's fiscal year is defined in the co-ownership bylaws (reglement de copropriete). It often matches the calendar year (January-December), but this isn't mandatory. The annual general meeting must be held within 30 days of the fiscal year end (Article 16ter). The syndic presents the accounts of the closed fiscal year for approval.
How do you record unpaid charges in the accounting?
In accrual accounting, charges called are recorded as soon as they're issued, whether or not the co-owner has paid. The unpaid amount remains recorded as a receivable. Annex 10 (Co-owner Contribution Tracking) tracks for each unit the amounts called, payments received, and remaining balance. Receivables expire after 5 years (Article 43).
Accounting software or Excel for a syndic?
Excel works for small co-ownerships if the syndic is careful. The problem: no automatic verification, no annex generation in the correct format, and the risk of formula errors increases with complexity. Suitable software automatically calculates totals, generates compliant annexes, and flags inconsistencies. For medium and large co-ownerships, software saves dozens of hours per year.
Is an external audit of syndic accounting required?
For co-ownerships with annual charges called exceeding 1,000,000 MAD, the Decree requires an audit by a certified accountant. For co-ownerships below that threshold, the general meeting can vote to hire a certified accountant to review the accounts, and that decision is made by majority of the votes of co-owners present or represented (Article 20).
How long should accounting documents be kept?
The Decree (Article 11) requires a minimum retention of 5 years for co-ownership accounting documents. In practice, it's recommended to keep them for at least 10 years. Keep in mind that charge receivables expire after 5 years (Article 43), so payment receipts must cover at least that period.
What's the difference between regular charges and works?
Regular charges cover day-to-day operations: security, cleaning, common area electricity, insurance, basic maintenance. They're planned in the annual budget and called regularly. Works (non-current charges) are exceptional expenses: roof repair, elevator replacement, facade renovation. They require a specific vote at the general meeting. Décret 2.23.700 distinguishes between the two in Annex 6 (Non-Current Works Tracking).
How do you present accounts at the general meeting?
The syndic must attach the accounting annexes to the general meeting notice, sent at least 15 days in advance (Article 16quinquies). During the meeting, the syndic presents the balance sheet for the closed fiscal year and the projected budget. Budget approval requires a 3/4 majority of all co-owner votes (Article 21). The documents must be accessible to absent co-owners.
My co-ownership is under the 200,000 MAD threshold. What do I need to do?
You're classified as a small co-ownership. Your obligations are simplified: you must produce Annex 10 (Contribution Tracking), Annex 13-1 (Very Simplified Financial Position), and Annex 13-2 (Very Simplified Income & Budget). These are short tables, designed for small residences. The format is set by the decree, but the content is simple to fill out.
How do you calculate your co-ownership's tier threshold?
The threshold is based on the total charges called during the fiscal year. Not the voted budget, not the property value, not the syndic's revenue. Add up all charges called to co-owners (regular charges + calls for works) over the year. If the total is 200,000 MAD or less, you're in the small tier. Between 200,000 and 500,000 MAD, medium tier. From 500,000 MAD, large tier.
Can the general meeting change accountants or software?
Yes. The general meeting can vote to change the accounting provider or management software. It falls under budget and regular operations, so it requires a 3/4 majority of all co-owner votes (Article 21) if it impacts the budget. The syndic is required to implement the voted decision.
Simplify your co-ownership's accounting
Kassaba generates the Décret 2.23.700 annexes, tracks payments and produces reports ready for the general meeting. Create an account and explore the interface.
Questions? [email protected]
This guide is provided for informational purposes by the Kassaba team. It does not constitute legal or accounting advice. For any legal questions about co-ownership accounting, consult a certified accountant or legal professional.