Tax on Selling Property in Morocco: 2026 Calculation (TPI)

Selling a property in Morocco triggers a major tax obligation: the tax on real-estate profit (TPI), commonly known as the property capital-gains tax. It is calculated on the difference between the sale price and the revalued acquisition price, and while it can represent a substantial amount, a series of legal exemptions and deductions can reduce it significantly. At Armonia Solutions, a concierge and asset-management company present in Paris and Marrakech for over 25 years of expertise, Armonia Solutions, we guide both resident and non-resident sellers through calculating and optimising this tax. This guide, updated for 2026, sets out the calculation, the rates, the exemptions and the formalities.

Understanding the TPI before you list a property for sale is essential: the amount of tax directly affects the net proceeds of the transaction and therefore the final return on your investment. Poor anticipation can eat into the gain you were expecting, whereas careful preparation often keeps thousands of dirhams in your pocket. Throughout this article, all amounts are shown in Moroccan dirhams (MAD) with an indicative US dollar equivalent (roughly 10 MAD to 1 USD) so international sellers can size the figures quickly.

Key figures of the property capital-gains tax in 2026

The table below summarises the parameters every seller should know before signing a preliminary sale agreement. These figures come from the Moroccan Direction Générale des Impôts (DGI); the revaluation coefficients and scales are published on the official portal and should be checked before any final calculation.

These thresholds matter because the interaction between the 20% rate and the 3% floor often determines the final bill. When the 20% calculation produces a smaller figure than 3% of the sale price, the floor applies instead, a point many sellers overlook.

How the TPI is calculated

The principle of the TPI rests on the net profit realised on the sale. This profit equals the difference between the sale price and the acquisition price, the latter being revalued by an official coefficient that accounts for inflation since the year of purchase. To this revalued acquisition price you add the acquisition costs (registration duties, notary fees, agency commission) and any justified renovation works, which together form the deductible cost base.

Once the net taxable profit is established, the standard rate of 20% is applied. The administration then compares the result with the minimum contribution of 3% of the sale price. Whichever is higher is the amount actually due. This two-step mechanism protects public revenue even where a seller declares little or no profit, so anticipating both calculations is the only way to know your real exposure. For a deeper look at how gains are taxed across asset classes, see our guide to capital-gains tax in Morocco.

Exemptions and reliefs that lower your tax

Several exemptions can substantially reduce, or even eliminate, the TPI. The best known is the primary-residence exemption: a property that has been the seller’s main home for at least six years of continuous occupation can be sold free of TPI. Shorter occupation periods may give partial relief under specific conditions, which makes the timing of a sale a genuine planning lever.

Other situations, certain transfers within a family, specific small-value disposals, or particular categories of seller, may also qualify for relief. Because each case depends on documentary proof and on the precise wording of the rules, we always recommend confirming eligibility before committing to a sale date. A few months of additional occupation can change a taxable transaction into an exempt one, which is why we encourage sellers to model several timing scenarios before signing.

Deductible costs: keep every invoice

Beyond the revaluation coefficient, the deductible cost base is where most of the tax saving is won or lost. Acquisition costs and renovation works can be added to the purchase price, provided you can produce the corresponding invoices issued by tax-registered businesses. Loan interest linked to the acquisition can also, within certain limits, be taken into account.

The practical challenge is keeping the supporting documents. Too many sellers lose the benefit of significant deductions simply because they did not keep their renovation invoices or notarised deeds. We advise every owner to build a file from the moment of purchase, gathering these documents and updating it after each set of works. At the time of sale, this file justifies a higher acquisition price, therefore a smaller net profit and a lighter TPI. It is a simple asset-management reflex with considerable tax effects, particularly useful in a long-term real-estate investment strategy in Marrakech.

Illustrative example (simulation)

Illustrative example (simulation), indicative figures, not a real client case.

Consider a British investor who bought an apartment in Guéliz for 1,500,000 MAD (about $150,000) eight years ago and now sells it for 2,300,000 MAD (about $230,000). Suppose the acquisition price revalued by the official coefficient reaches 1,750,000 MAD. The seller adds 120,000 MAD of acquisition costs and 180,000 MAD of justified renovation works, bringing the total deductible cost to 2,050,000 MAD (about $205,000).

The net taxable profit therefore comes to 250,000 MAD (about $25,000). The TPI at 20% works out at 50,000 MAD (about $5,000). We then check the minimum contribution: 3% of the sale price equals 69,000 MAD (about $6,900). Because the floor is higher than the 20% calculation, it is the floor that applies, the tax due is 69,000 MAD (about $6,900). Without the works and deductible costs, the profit would have been far higher and the TPI heavier. This example shows how important it is to document every expense and to verify both calculations systematically.

Estimate your TPI in a few seconds

Use the indicative simulator below to get an order of magnitude. Enter the sale price and your total deductible cost (revalued purchase price plus documented costs and works). The tool applies the 20% rate, checks the 3% floor, and shows the higher of the two, with an approximate dollar equivalent. It is an estimate only and does not replace a calculation validated with the DGI or your notary.

Resident, non-resident sellers and double taxation

The TPI applies to everyone who sells real estate in Morocco, but the practical consequences differ depending on where you are tax-resident. A Moroccan resident settles the TPI locally and is generally done with the matter once the declaration is filed and the tax paid. A non-resident seller, for example a British, Gulf or other international owner, pays the same TPI in Morocco, yet must also consider how the gain is treated in the country where they are resident for tax purposes.

This is where double-tax treaties matter. Morocco has signed agreements with many countries precisely to prevent the same gain from being taxed twice. Depending on the treaty, the tax paid in Morocco may be credited against any liability due at home, or the gain may be taxable only in Morocco. The mechanics vary from one treaty to another, so non-resident sellers should check the specific agreement between Morocco and their country of residence, and keep the Moroccan tax receipt as proof of payment. Planning this in advance avoids both unexpected bills abroad and the loss of credits to which you are entitled.

The sale process and the 30-day formality, step by step

In practice, a Moroccan property sale follows a clear sequence. It usually begins with a preliminary agreement that fixes the price and the conditions, often subject to suspensive clauses such as obtaining clear title or financing. The final deed is then drawn up and signed before a notary or adoul, who secures the transfer and the registration of the new owner. Payment of the price and the handover of keys are coordinated around this signature.

The tax step follows immediately. The seller, or the notary acting on their behalf, must declare the sale and settle the TPI within 30 days of the transaction. This declaration sets out the sale price, the revalued acquisition price, the deductible costs and the resulting profit, together with the supporting documents. Because the window is short, having your file ready before signing is not a luxury but a necessity: gathering invoices and deeds after the deadline rarely ends well. Sellers who prepare this documentation early move through the formality smoothly and avoid the penalties that come with a late or incomplete declaration.

Best practices and common mistakes

The most frequent mistake is to discover the TPI only at the notary’s office, once the sale price is fixed and the levers for reducing the tax have largely disappeared. Sellers who plan ahead obtain a very different result. Good practice starts at purchase: keep the notarised deed, the registration receipts and every renovation invoice in a single file. It continues during ownership: each time you carry out works, file the invoice from a tax-registered company immediately.

A second common error is to ignore the six-year primary-residence rule. Selling a few months too early can forfeit a full exemption worth far more than the inconvenience of waiting. A third mistake is forgetting the 30-day filing deadline after the sale, which can expose the seller to penalties. Finally, sellers often misjudge the interaction between the 20% rate and the 3% floor; running both calculations, as our simulator does, avoids unpleasant surprises. When in doubt, a short consultation before listing usually pays for itself many times over.

Selling property in Morocco: cultural and practical notes for international owners

For British and other international owners, selling in Morocco follows a rhythm that rewards patience and personal relationships. Transactions still pass through the adoul or a notary, and the written deed carries decisive weight, yet the path to signing is often paved by face-to-face meetings, tea, and a degree of negotiation that can feel unhurried to those used to fully digital, deadline-driven markets. Trust is built before paperwork, not after it. Seasonality also matters: demand in Marrakech and Agadir rises around the cooler months and the tourist peaks, so the calendar of a sale is rarely neutral. International sellers who respect these codes, arriving with a complete documentary file, allowing time for the buyer’s due diligence, and working with a local intermediary who can bridge language and administrative habits, consistently secure smoother completions and stronger net outcomes than those who try to compress the process into a foreign timetable.

Frequently asked questions

What is the TPI rate in Morocco?
The tax on real-estate profit is 20% of the net taxable profit. A minimum contribution of 3% of the sale price applies when the 20% calculation gives a lower amount, guaranteeing a floor levy.

How is the taxable profit calculated?
It equals the sale price less the acquisition price revalued by an official coefficient, less deductible acquisition costs and documented renovation works. The result is the net profit on which the 20% rate is applied.

Is my main home exempt from TPI?
A property occupied as your primary residence for at least six continuous years can be sold free of TPI. Shorter periods may give partial relief under specific conditions.

What is the minimum 3% contribution?
It is a floor: when 20% of the net profit is lower than 3% of the sale price, the 3% figure applies instead, so some tax is due even on a modest declared profit.

Which costs can I deduct?
Acquisition costs (registration, notary, agency) and renovation works, provided you hold invoices from tax-registered businesses. Loan interest tied to the acquisition may also count within limits.

What happens if I have no invoices?
A flat allowance of 15% of the acquisition price may be applied for acquisition costs when supporting invoices are missing, but keeping real invoices usually yields a larger deduction.

How long do I have to declare the sale?
The declaration must be filed within 30 days of the sale. Missing this deadline can expose you to penalties.

Does the TPI apply to non-residents?
Yes. Non-resident sellers are subject to the same TPI rules; depending on your country of residence, a double-tax treaty with Morocco may affect how the gain is ultimately taxed at home.

Can I estimate my TPI before selling?
Yes, the simulator above gives an indicative figure. For a binding calculation, confirm the revaluation coefficient and your deductible base with the DGI or your notary.

Should I sell or keep renting?
It depends on your net-of-tax proceeds, the local market and your documentary file. Modelling several timing scenarios, and reviewing how you currently own and manage property in Morocco, helps you decide.

Conclusion

The TPI is rarely as simple as a single 20% rate: the revaluation coefficient, the 3% floor, the six-year exemption and the deductible cost base all shape the final bill. The sellers who pay the least are those who prepare early, keep every document, and run both calculations before signing. A few months of timing, or a well-kept file of invoices, can mean the difference between a heavy levy and a light one.

At Armonia Solutions, with over 25 years of expertise between Paris and Marrakech, we help resident and non-resident owners calculate, anticipate and optimise the tax on their property sale, and complete the transaction with confidence. Contact our team for a personalised estimate before you list your property.

Sources

Direction Générale des Impôts du Maroc, official portal: tax.gov.ma. Revaluation coefficients, TPI scales and filing rules are published and updated there; verify them before any final calculation.