Complete Guide to Real Estate Taxation in Morocco 2026
Aqarrati Team
Moroccan Real Estate Experts
Morocco's real estate tax framework has undergone several reforms in recent years. In 2026, investors must understand at least 4 distinct tax regimes to maximize returns. A solid grasp of the tax environment can reduce your tax burden by 20 to 40%.
The Main Real Estate Taxes in Morocco
Real estate investment in Morocco is subject to several taxes: the capital gains tax (TPI), income tax on rental revenues (IR), registration and stamp duties, as well as the habitation tax and municipal services tax. Each follows specific rules.
Capital Gains Tax (TPI)
When you sell a property, the realized capital gain is subject to a withholding tax of 20% on the gross sale price, or 30% on the net gain. The buyer must withhold and remit this tax to the tax authority within 30 days of the transaction.
- Exemption for primary residence held for more than 6 years
- Exemption for sales below 140,000 MAD
- 5% deduction per year of ownership beyond 5 years
- Exemption on the first sale of affordable housing (≤ 250,000 MAD)
Tax on Rental Income
Rental income earned by individuals is taxed under the income tax (IR) as property income. A flat 40% deduction is applied to gross rental receipts to account for charges. The marginal rate can reach 38% depending on total income bracket.
| Net Property Income Bracket | Applicable IR Rate |
|---|---|
| 0 – 30,000 MAD | Exempt |
| 30,001 – 50,000 MAD | 10% |
| 50,001 – 60,000 MAD | 20% |
| 60,001 – 80,000 MAD | 30% |
| Above 80,000 MAD | 38% |
Registration Fees
When acquiring property, registration fees apply: 4% for built properties and land, 3% for eligible new constructions. These fees are calculated on the declared market value and paid at the notary.
5 Tips to Optimize Your Real Estate Taxes
- Hold properties for at least 6 years to benefit from capital gains deductions
- Deduct all eligible expenses: loan interest, renovations, insurance
- Choose the actual expenses regime if your charges exceed 40% of gross rents
- Consider holding via an SCI company for better estate planning
- Consult a tax advisor before any significant property sale
Frequently asked questions
Can you be exempt from capital gains tax in Morocco?
Yes, if you sell your primary residence after 6 years of continuous occupancy, or if the sale price is below 140,000 MAD.
How is rental income below 30,000 MAD taxed?
It is exempt from IR, but must still be declared annually.
When are registration fees due?
At the signing of the sale deed at the notary, within 30 days of the deed date.
Does the habitation tax apply to all dwellings?
No, social housing with an annual rental value not exceeding 5,000 MAD is exempt.
Can co-ownership charges be deducted from property income?
Under the actual expenses regime, yes: co-ownership charges, renovation works and loan interest are deductible.
Manage your properties with Aqarrati
Compliant contracts, payment tracking, and automatic reminders — all in one dashboard.
Try for free