1. TPI — Capital gains tax on sale
Taxe sur les Profits Immobiliers (TPI) applies when an individual sells real estate in Morocco. Rate: 20 % of net capital gain, with a minimum of 3 % of sale price whichever is higher.
Capital gain = Sale price − (Acquisition price + documented improvements + acquisition costs) adjusted for inflation using the coefficient published by the Moroccan Treasury.
Exemptions:
- Primary residence for at least 5 years on the date of sale — exempt (a 3% minimum applies on the part of the price above MAD 4,000,000)
- Total property disposals of the calendar year up to MAD 140,000 — exempt
- Gratuitous transfers between ascendants and descendants, spouses, siblings, or between a kafil and the child in their care — exempt (article 63-III)
- Expropriation for public utility — taxable (article 61-II); no article exempts it
2. Registration duties (droits d'enregistrement)
| Transaction type | Rate 2026 |
|---|---|
| Residential acquisition (existing) | 4 % |
| Commercial & professional acquisition | 6 % |
| Industrial land & buildings | 4 % |
| Building land with immediate construction | 4 % |
| Social housing (first-time buyer) | Exempt |
| Gift to direct relatives | 1 % |
| Gift to other relatives | 4 % |
| Inheritance registration | 1 % |
3. VAT on new-build sales
Sales by developers of new residential units are subject to VAT at 20 % (standard rate). Exemptions and reduced rates:
- Social housing — VAT exempt (subject to conditions)
- Low-cost housing (300 000 MAD max) — Reduced 10 % VAT
- First-time buyer programmes — VAT refund via state subsidy
- VAT is included in the sale price quoted to buyers; not visible separately
4. ANCFCC fees (property registration)
- Land registry (immatriculation) — 1 % of sale price, minimum 150 MAD
- Certificate of ownership — 75 MAD per certificate
- Mortgage registration — 1 % of secured amount, max capped by law
- Cadastral plan update — 75-150 MAD
5. Local property taxes (annual)
- Taxe Urbaine / TH — 10 % of potential rental value (75 % abatement for primary residence). Payable annually by the owner.
- Taxe de Services Communaux / TSC — 10.5 % of potential rental value (6.5 % if property is vacant).
- Notary fees — 0.5-1.0 % of sale price, scale set by law.
- Agent commission — 2.5-5 % of sale price, usually paid by the seller.
6. Total acquisition cost — example
Example: purchase of an existing apartment at 3 M MAD in Casablanca (Maarif).
| Item | Amount (MAD) |
|---|---|
| Purchase price | 3 000 000 |
| Registration duty 4 % | 120 000 |
| Notary fees ~0.75 % | 22 500 |
| ANCFCC registration 1 % | 30 000 |
| RICS valuation | 3 500 |
| Bank file fees ~0.5 % | 15 000 |
| Total | ≈ 3 191 000 |
Total acquisition cost ≈ +6.4 % of the purchase price in this case. For budgeting purposes, plan for 7-9 % above the sticker price.
FAQ
Are MRE taxed differently?
Not on acquisition duties — same rates as residents. On TPI sale, MRE benefit from the same primary residence exemption (at least 5 years, article 63-II-B): the home they keep in Morocco, or one occupied free of charge by their spouse, ascendants or first-degree descendants, counts as the main residence as long as it has been neither let nor put to professional use.
Do foreign buyers pay extra tax?
No surcharge on acquisition. Some double-taxation treaties allow foreign buyers to credit Moroccan TPI against home-country capital gains tax (France, Spain, Belgium treaties).
How to reduce TPI on sale?
Document all improvement expenses (renovations, upgrades) with receipts. These are deductible from capital gain. Professional RICS valuation at acquisition establishes a defensible basis.
Are there withholding taxes for non-residents?
Yes — 20 % withholding on TPI applies. Notary must withhold and pay to Treasury. Foreign buyer receives a tax certificate for their home country declaration.
Planning a Moroccan transaction?
A RICS valuation helps defend your TPI basis on sale and documents your acquisition cost.
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