Real Estate Taxation in Morocco 2026: Complete Guide to Taxes and Exemptions
Équipe Aqarrati
Moroccan Real Estate Experts
Moroccan real estate taxation encompasses several taxes and levies applied to the purchase, sale, rental, and ownership of property. In 2026, various reforms have been introduced to attract investors and streamline fiscal procedures. Understanding these mechanisms can significantly improve the profitability of your real estate investments in Morocco.
Capital Gains Tax (TPI)
The TPI is the most significant tax when selling a property in Morocco. It applies to the gain realized, which is the difference between the sale price and the updated acquisition cost. The rate is fixed at 20% for individuals, with a minimum of 3% of the sale price. For companies, corporate tax (IS) applies at rates between 20% and 35% depending on profit brackets.
| Property Type | TPI Rate | Minimum Tax |
|---|---|---|
| Standard property | 20% | 3% of sale price |
| Bare land | 20% | 3% of sale price |
| Primary residence under 6 years | 20% | 3% of sale price |
| Primary residence 6 years or more | Full exemption | 0% |
Rental Income Tax (IR Foncier)
Rental income in Morocco is subject to the IR foncier. A 40% flat deduction is applied to gross rental income to account for expenses, and the tax is then calculated on the net income. Progressive rates range from 10% to 38%.
| Net Income Bracket | Tax Rate |
|---|---|
| 0 to 30,000 MAD | 10% |
| 30,001 to 50,000 MAD | 20% |
| 50,001 to 60,000 MAD | 30% |
| 60,001 to 80,000 MAD | 34% |
| Above 80,000 MAD | 38% |
Acquisition Costs: Notary, Registration, and Land Registry
When buying property in Morocco, additional costs are added to the purchase price. Notary fees are approximately 1% (excl. VAT) of the sale price. Registration duties are 4% for built properties and 5% for bare land. Land registry inscription costs 1% of the purchase price. In total, buyers should budget an additional 6% to 7.5% on top of the property price.
- Registration duties: 4% (built property) or 5% (land)
- Land registry (conservation fonciere): 1% of price
- Notary fees: approx. 1% excl. VAT
- Land publicity tax: 0.5%
- Administrative fees and stamps: approx. 0.1%
Housing Tax and Municipal Services Tax
The housing tax applies to properties used as primary or secondary residences. It is calculated on the property rental value, with rates varying by municipality. The municipal services tax (TSC) is owed by owners of built properties and is set at 10.5% of the rental value in urban areas.
Key Tax Exemptions to Know
- TPI exemption: primary residence after 6 years of continuous ownership
- Exemption for first-time home buyers (subject to income conditions)
- 0% VAT for social housing (under 100 sqm and under 250,000 MAD)
- Registration duty exemption in Special Industrial Acceleration Zones
- 40% flat deduction on gross rental income for IR foncier
Tax Optimization Tips for Investors
Several strategies can help optimize your tax burden in Moroccan real estate. Setting up a Societe Civile Immobiliere (SCI) can offer better tax management across multiple properties. Holding your primary residence for at least 6 years eliminates TPI on resale. Regularly declaring rental income is also strongly advised to avoid tax audits and penalties.
Frequently asked questions
What tax applies when selling a property in Morocco?
The Capital Gains Tax (TPI) is 20% of the gain realized, with a minimum of 3% of the sale price. It is fully exempt for a primary residence held for at least 6 consecutive years.
How is rental income taxed in Morocco?
Rental income is subject to IR foncier after a 40% flat deduction. Progressive rates from 10% to 38% apply depending on annual net income.
What costs should I expect when buying property in Morocco?
Budget 6% to 7.5% of the purchase price in additional costs: registration duties (4-5%), land registry (1%), notary fees (1%), and miscellaneous administrative fees.
Do Moroccan expats (MRE) get tax benefits?
Yes, MRE who repatriate foreign currency to purchase property in convertible MAD benefit from specific exemptions on TPI and registration duties.
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