Morocco property capital gains indexation coefficient
calculation, application, impact
A 600,000 MAD apparent capital gain over 15 years can drop to 300,000 MAD taxable after applying the indexation coefficient. Most sellers (and even some notaries) get it wrong. Here is how the mechanism works — with official 2026 coefficients.
What is the indexation coefficient?
In Morocco, when you sell real estate (outside legal exemptions), the Capital Gains Tax (Taxe sur les Profits Immobiliers, TPI) applies to the gain realized. That gain is, broadly, the difference between sale price and purchase price — but this naive view ignores monetary erosion over the holding period.
The indexation coefficient(coefficient d'actualisation) corrects this. It is a multiplier ≥ 1 applied to the acquisition price, bringing it to its economic equivalent at the year of sale. In plain terms: 1,000,000 MAD paid in 2010 is not the same as 1,000,000 MAD received in 2026 — the coefficient officializes that equivalence.
The mechanism is established in article 65 of the Moroccan General Tax Code (CGI), which delegates the annual table to a ministerial order published in the Bulletin Officiel. For sales in 2026, the applicable table was set by the order of 6 February 2026, published in Bulletin Officiel n° 7486 of 26 February 2026.
2026 official coefficients (reference values)
Source: ministerial order of 6 February 2026, B.O. n° 7486. The full table covers every year from 1946 onward; for pre-1946 acquisitions, a flat 3% per year of holding applies.
The exact formula
Worked example — long-term hold · villa Marrakech 2000 → 2026
- Acquisition price (2000): 1,500,000 MAD
- Documented acquisition costs: 150,000 MAD (10%)
- Justified renovation works over 26 years: 250,000 MAD
- Sale price (2026): 6,500,000 MAD
- Official coefficient 2000 → 2026: 1.585
Net gain = 6,500,000 − 2,377,500 − 250,000 − 150,000 = 3,722,500 MAD
TPI at 20% = 3,722,500 × 20% = 744,500 MAD
Minimum levy check = 6,500,000 × 3% = 195,000 MAD
TPI due = MAX(744,500 ; 195,000) = 744,500 MAD
Without applying the coefficient, the apparent gain would be 4,600,000 MAD → 920,000 MAD of TPI. Savings: 175,500 MAD from a single correct application of article 65 CGI.
Why this matters for MRE / diaspora sellers
Moroccans residing abroad typically hold properties for long periods (15-30 years on average). For these holdings, the indexation coefficient becomes the single most impactful element of the TPI calculation — often reducing the taxable gain by 30 to 60% versus a naive nominal calculation.
Combined with the foreign tax credit mechanism in the bilateral tax treaty with your country of residence (France, Belgium, Canada, UAE…), a rigorous Moroccan declaration directly determines the credit you can claim abroad. Common pattern: a France-resident MRE under-declares the indexation, pays excess TPI in Morocco, and receives a smaller French foreign tax credit than they could have.
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