Property Tax in Morocco: Complete Guide & Comparative Analysis
Understanding property tax in Morocco is essential for anyone buying, owning or renting real estate in cities such as Marrakech or Agadir. The Moroccan system is not a single tax but a set of distinct charges — housing tax, communal services tax, registration duties, capital-gains tax and rental-income tax — each with its own rates, thresholds and exemptions. This 2026 guide explains who pays what, how the main taxes are calculated, the reliefs available to residents and non-residents, and the practical steps to stay compliant. With more than 25 years of experience between Paris and Marrakech, Armonia Solutions helps owners structure their property holdings efficiently. (Guide updated 2026; always confirm current figures with the DGI.)
Key figures: property tax in Morocco (2026)
The essential, sourced benchmarks. Figures are indicative and set by the annual Finance Law; confirm with the tax authority (DGI).
| Charge | Indicative 2026 level | Note |
|---|---|---|
| Registration duty (droits d’enregistrement) | ≈ 4 % of purchase price | Residential property |
| Land registry & notary | ≈ 1.5 % + ~1 % | Conservation foncière + notaire |
| Housing tax (taxe d’habitation) | Progressive, 75 % relief on main home | On net rental value |
| Communal services tax (TSC) | ≈ 10.5 % urban | On rental value |
| Capital-gains tax (TPI) | 20 % of the gain (min ~3 % of price) | Exemptions apply |
| Rental-income tax (IR) | Progressive IR scale | After allowances |
| New-build exemption | Up to 5 years | Housing tax / TSC |
What counts as property tax in Morocco?
“Property tax in Morocco” is best understood as a family of charges that apply at different moments in the life of a property: when you buy it (registration and notary duties), while you own it (housing tax and communal services tax, plus tax on undeveloped land), when you earn from it (rental-income tax), and when you sell it (capital-gains tax). Treating these as one coordinated picture — rather than reacting to each bill separately — is the key to efficient ownership, especially for foreign investors who also have obligations in their home country.
Housing tax (taxe d’habitation)
The housing tax applies to built properties used for residential purposes. It is assessed on the property’s net rental value, determined by the local authorities and revised periodically. A primary residence benefits from a substantial relief (a 75 % reduction on the rental value used for the calculation), so owner-occupiers typically pay far less than landlords. New constructions are generally exempt for an initial period of up to five years. Rates are progressive, rising with the assessed rental value, which means modest homes often fall below or near the exemption threshold while larger or higher-value properties carry a meaningful charge.
Communal services tax (taxe de services communaux)
The communal services tax funds local public services and is also calculated on the property’s rental value, at a rate of around 10.5 % in urban areas (lower in peripheral zones). Unlike the housing tax, it applies whether the property is your main home, a second home or a rental. Owners should budget for both the housing tax and the communal services tax together, as they are typically billed in connection with one another.
Tax on undeveloped land (taxe sur les terrains non bâtis)
Owners of urban land without construction may be liable for the tax on undeveloped land (TNB), assessed per square metre according to the zoning and location. This charge is designed to encourage development; certain land — for example plots subject to building restrictions or within a defined development timeline — can be exempt. If you hold land in or around Marrakech for a future project, factor the TNB into your holding costs.
Registration and notary duties when you buy
Acquiring property in Morocco triggers one-off costs on top of the price, which buyers should budget for from the outset.
| Cost | Indicative rate | Paid to |
|---|---|---|
| Registration duty | ≈ 4 % of price (residential) | Tax administration |
| Land registry (conservation foncière) | ≈ 1.5 % + fixed fees | Land registry |
| Notary fees | ≈ 1 % + VAT | Notaire |
| Total acquisition costs | ≈ 6–7 % of price | — |
Always confirm the exact rates for your transaction, as reduced rates can apply to certain new-build or social-housing purchases.
Capital-gains tax (TPI) when you sell
When you sell a Moroccan property at a profit, the gain is subject to the tax on real-estate profits (TPI), generally at 20 % of the net gain, with a minimum contribution of around 3 % of the sale price. The taxable gain is the sale price less the acquisition price, eligible costs and investments, with an indexation that accounts for inflation over the holding period. A key relief: the sale of a property that has served as the owner’s principal residence for a sufficient holding period (commonly six years) can be fully exempt. Non-residents are also subject to the TPI on Moroccan property, so coordinating the sale with your home-country tax position is important.
| Step | Detail | Illustrative (MAD) |
|---|---|---|
| Sale price | — | 2 000 000 |
| Acquisition price + costs | Indexed | −1 500 000 |
| Net taxable gain | — | 500 000 |
| TPI at 20 % | — | 100 000 |
| Minimum check (3 % of price) | 60 000 | 20 % applies |
Rental income and property
If you let your property, the net rental income is subject to income tax (IR) on the progressive scale after the applicable allowances. Short-term Airbnb-style letting has its own practical and compliance dimension. For the detail, see our dedicated guide to rental income tax in Morocco, and for the wider picture of levies on real estate, our overview of real estate tax in Morocco.
Worked example: annual property tax for a Marrakech apartment
Illustrative, clearly labelled example for an apartment let to tenants (assumptions in MAD).
| Item | Basis | Amount (MAD) |
|---|---|---|
| Assessed annual rental value | Set by local authority | 48 000 |
| Housing tax (let property, no main-home relief) | Progressive | ≈ 3 000 |
| Communal services tax | 10.5 % of rental value | ≈ 5 040 |
| Total annual local property tax | — | ≈ 8 040 |
For an owner-occupied home of the same value, the 75 % relief on the housing-tax base would reduce the bill substantially. Figures are illustrative; your local assessment determines the exact amount.
Exemptions and reliefs to know
- Primary residence: 75 % relief on the housing-tax base, and capital-gains exemption after the qualifying holding period.
- New construction: housing tax and communal services tax exemption for up to five years.
- Low rental values: properties below the assessed threshold may owe little or no housing tax.
- Social and certain new-build purchases: reduced registration duties may apply.
Property tax in Morocco for non-residents
Foreign owners are fully within the scope of Moroccan property taxation. If you own an apartment in Marrakech or a villa in Agadir but live abroad, you still owe the annual housing tax and communal services tax, you are taxed on Moroccan-source rental income, and you are liable for the capital-gains tax (TPI) when you sell — exactly as a resident would be. What differs is the coordination with your home country. Most of Morocco’s tax treaties allocate the taxation of immovable property to the country where the property is located, with a credit mechanism in your country of residence to avoid double taxation. In practice this means you declare and pay in Morocco first, then report the income or gain at home and claim relief. Keeping clean Moroccan records — tax notices, rental statements and the notarized deed — is what makes that home-country relief straightforward to obtain.
What changed for property tax in 2026
The annual Finance Law fine-tunes rates, thresholds and reliefs each year, so it is worth checking the current position rather than relying on older figures. Recent reforms have continued to simplify the income-tax scale and adjust the brackets that feed into rental-income taxation, while the core property charges — housing tax, communal services tax and the capital-gains TPI — have remained structurally stable. The principal-residence reliefs and the multi-year exemption for new construction also remain in place. Because the detail can move from one budget to the next, treat the figures in this guide as indicative and confirm the exact 2026 rates with the DGI or your adviser before completing a transaction.
Marrakech and Agadir: regional considerations
Property tax is national in its rules but local in its assessment: the rental value used to compute the housing tax and communal services tax is set by the local authorities, so two similar apartments in different neighbourhoods or cities can carry different bills. In a high-demand tourist market like Marrakech — particularly central districts such as Guéliz, Hivernage and the Medina — assessed rental values and therefore local taxes tend to be higher than in quieter areas, but so are the rents and resale prices that justify them. Agadir, with its coastal and resort profile, has its own assessment patterns. For investors comparing locations, the right approach is to look at the after-tax yield rather than the headline rent, factoring in both the local property taxes and the rental-income tax.
Case study: ten-year tax cost for two investors (2026)
To see how these taxes add up over a full ownership cycle, consider two typical Armonia Solutions clients. Investor A buys a 1,200,000 MAD apartment in Gueliz, Marrakech, rented furnished year-round. Investor B buys an 850,000 MAD apartment near Founty, Agadir, used as a second home. Both hold for ten years and resell with a 30% capital gain. The figures below are indicative estimates based on 2026 rules; individual situations vary and should be confirmed with the DGI or a local tax adviser.
| Tax item over 10 years | Investor A — Marrakech (rented) | Investor B — Agadir (second home) |
|---|---|---|
| Registration and transfer duties at purchase (approx. 6-7%) | ~78,000 MAD | ~55,000 MAD |
| Housing tax (taxe d’habitation) | Not due (rented out) | ~24,000 MAD (no 75% abatement, second home) |
| Communal services tax | ~63,000 MAD | ~38,000 MAD |
| Tax on rental income (after 40% allowance) | ~96,000 MAD | 0 MAD |
| Capital-gains tax (TPI) at resale | ~72,000 MAD (20% of gain) | ~51,000 MAD |
| Estimated total tax burden | ~309,000 MAD | ~168,000 MAD |
The lesson is twofold. First, recurring taxes are modest in Morocco by international standards, but transaction taxes (registration at purchase, TPI at resale) dominate the total bill, so holding period and exit timing matter more than annual charges. Second, the rented Marrakech property generates a much higher tax bill in absolute terms, yet its rental income more than offsets it: at a 6% net yield, Investor A collects roughly 720,000 MAD of rent over the decade, leaving him far ahead after tax. Professional rental management that keeps occupancy high is therefore the single strongest lever on after-tax returns.
Quick simulator: estimate your annual property tax bill
You can approximate your own annual recurring taxes in four steps, using the rental value (valeur locative) assessed by the tax administration.
- Step 1 — establish the rental value. This is the theoretical annual rent of your property as assessed by the local tax services, reviewed by 2% every five years. For a typical 100 m² apartment in central Marrakech, assume 36,000-48,000 MAD per year.
- Step 2 — apply the abatement. If the property is your main residence, reduce the rental value by 75%. Second homes and vacant properties get no abatement.
- Step 3 — apply the housing tax scale. After abatement: up to 5,000 MAD exempt; 5,001-20,000 MAD taxed at 10%; 20,001-40,000 MAD at 20%; above 40,000 MAD at 30%, with the corresponding deductions at each band.
- Step 4 — add the communal services tax. 10.5% of the rental value (after the same abatement for main residences) in urban perimeters, 6.5% in peripheral zones. Note that rented properties escape housing tax but still bear the communal services tax through their assessed rental value.
Worked mini-example: a main residence in Agadir with a rental value of 30,000 MAD. After the 75% abatement, the taxable base is 7,500 MAD. Housing tax: (7,500 – 5,000) x 10% = 250 MAD. Communal services tax: 7,500 x 10.5% = 788 MAD. Total annual recurring tax: roughly 1,038 MAD — under 110 euros, one of the lowest holding costs in the Mediterranean region.
Practical checklist for property owners
Use this actionable checklist to stay compliant and avoid surprises:
- Budget 6–7 % of the price for acquisition costs before you buy.
- Declare your occupancy status (main home vs. let) to claim the right relief.
- Keep the deed, registration receipts and improvement invoices for future capital-gains calculation.
- Track the five-year new-build exemption window so you are ready when it ends.
- If you let the property, declare rental income and coordinate with home-country tax.
- Confirm current rates with the DGI before any transaction.
| Document | Why keep it |
|---|---|
| Notarized deed | Proof of acquisition price |
| Registration & land-registry receipts | Establish cost base |
| Improvement invoices | Increase deductible cost on resale |
| Local tax notices | Track housing tax & TSC |
Common mistakes to avoid
Owners frequently underestimate acquisition costs, forget to claim the main-residence relief, lose the invoices needed to reduce a future capital gain, or assume that a tax treaty removes the need to declare. Non-residents sometimes overlook that Moroccan property remains taxable in Morocco regardless of where they live. Planning ahead — ideally with advice covering both Morocco and your home country — avoids these pitfalls and protects your net return.
Frequently asked questions
Is there an annual property tax in Morocco?
Yes — mainly the housing tax and the communal services tax, both based on the property’s rental value and billed annually by the local authorities.
Do owner-occupiers pay less?
Yes. A primary residence benefits from a 75 % relief on the housing-tax base, so owner-occupiers pay far less than landlords on an equivalent property.
Are new constructions exempt?
Generally yes, for up to five years for both the housing tax and the communal services tax, after which the normal charges apply.
What is the capital-gains tax on selling property?
The TPI is generally 20 % of the net gain, with a minimum of about 3 % of the sale price; a principal residence held long enough can be fully exempt.
What are the costs of buying property in Morocco?
Budget roughly 6–7 % of the price for registration duty, land-registry charges and notary fees combined.
Do non-residents pay Moroccan property tax?
Yes. Ownership, rental and capital-gains charges apply to the Moroccan property regardless of the owner’s country of residence, with treaty relief at home.
How is the housing tax calculated?
On the net rental value assessed by the authorities, on a progressive scale, with the main-residence relief where applicable.
What is the communal services tax?
A local tax of around 10.5 % of the rental value in urban areas, applying to main homes, second homes and rentals alike.
Is rental income taxed separately?
Yes, net rental income is subject to income tax on the progressive scale; see our dedicated rental-income tax guide.
Where can I confirm the official rates?
With the Moroccan tax authority (DGI), whose figures are updated each year by the Finance Law.
Conclusion
Property tax in Morocco is manageable once you see it as a coordinated set of charges across the buy-hold-earn-sell cycle. Claiming the right reliefs — the main-residence relief, the new-build exemption and the capital-gains exemption — can materially reduce your total burden, while careful record-keeping protects you on resale. Armonia Solutions, with more than 25 years of experience between Paris and Marrakech, helps owners structure and optimise their property holdings. Contact our experts for a personalized review of your situation.
Sources and references
- Direction Générale des Impôts (DGI), tax.gov.ma — General Tax Code and Finance Law 2026.
- Moroccan Finance Law 2026 — rates, thresholds and reliefs.
- Armonia Solutions — practitioner guidance for owners in Marrakech and Agadir.
