1. The principle: 20% TPI… unless it is your main residence
A reminder of the general framework: the Taxe sur les Profits Immobiliers (TPI) — Morocco's property capital gains tax, governed by articles 224 to 246 of the Tax Code (CGI) — hits the gain on any property sale at 20% of the net profit, and cannot be lower than the minimum contribution of 3% of the sale price, even where there is no gain. The net profit is computed as: sale price − (acquisition price × official revaluation coefficient) − deductible costs (loan interest, notary fees on acquisition, documented works).
The main-residence exemption is the principal way out of this tax: the sale of the dwelling occupied as the seller's main home, without interruption, for at least 6 years before the sale is exempt from TPI. Two further useful markers: a net profit below MAD 30,000 is exempt whatever the property, and the sale must be declared within 30 days of the transfer.
2. The central condition: 6 years of uninterrupted occupation
Every word matters. Occupation: the property must be lived in by the seller, not merely owned — ownership alone is not enough. As a main home: the dwelling where you actually live, not a second home and not an investment property. Uninterrupted: continuity is assessed over the whole period — a property left vacant for years, or put to another use, breaks the thread. At least 6 years before the sale: sell after five and a half years and you fall back into ordinary TPI at 20%, with the 3% minimum-contribution floor on the price.
One practical point noted by the administration: the exemption applies only once per year, and provided the property does not generate rental income. A seller who chains “main residences” sold in quick succession invites requalification.
3. Supporting documents: the occupation file that carries the day
The exemption is not declared, it is proven. When the administration examines the right to the exemption — notably in a prior tax ruling request — it relies on an occupation file:
- Housing-tax receipts in the seller's name, at the property's address, over the claimed period of occupation;
- Utility bills attached to the dwelling, whose continuity over time evidences genuine — not token — occupation;
- Any additional consistent element tying your daily life to that address over the years.
The exact list of accepted documents and their weight depend on the texts in force and administrative practice: build the file before signing the preliminary agreement, and have it validated by your notary or a tax adviser. A file reconstructed in a hurry after the sale is the weakest scenario of all.
4. The traps that kill the exemption
- Letting the property, even partially or temporarily. Trap number one: the exemption applies provided the property does not generate rental income. Renting out a floor, an annex, or the whole dwelling “while waiting for the sale” contradicts occupation as a main home — and rents leave traces (contracts, transfers, filings) the administration knows how to cross-check.
- Moving out before the sale. Leaving long before selling — empty property, meters closed, housing tax paid elsewhere — weakens the main-home qualification at the time of transfer. The text requires uninterrupted occupation before the sale: the longer the gap between moving out and signing, the more contestable the file becomes. If your timetable forces you to leave before selling, have your situation validated upfront rather than defend it in an audit.
- Miscounting the period. Six years of occupation, not six years of ownership: a property bought and then let for three years before you moved in only meets the condition six years after you actually moved in.
- A patchy file. A genuine but unprovable exemption is a lost exemption: without continuous receipts and bills, the administration can set the exemption aside and assess TPI under the ordinary rules.
5. Locking in the exemption before the sale: the prior tax ruling
Since 1 July 2023, a seller can have the exemption validated before the final deed through the prior tax ruling request (article 234 quinquies of the CGI). Applied to the main-residence case, the mechanism works as follows:
- Electronic filing within 30 days of the preliminary sale agreement — the request can cover the right to the exemption itself, occupation file attached;
- Reply from the tax administration within 60 days, in the form of an assessment certificate valid for 6 months;
- A seller who files in line with the ruling is exempt from tax audit on that sale's property capital gains: the exemption is definitively secured.
The flip side, for those who skip it: without a prior ruling (or without filing in line with the ruling received), the seller advances, on a provisional basis, the difference between 5% of the sale price and the tax declared — refunded automatically if the administration opens no adjustment procedure within 90 days. For a seller who believes they are exempt (tax declared: zero), that is potentially 5% of the sale price tied up pending verification. On a MAD 2,000,000 sale, up to MAD 100,000 of cash can sit in escrow. Upfront validation is therefore no formality: it is the difference between a certain exemption and a hoped-for one.
6. Special cases and where the valuation fits
Specific conditions apply to non-resident taxpayers: if you live abroad and are selling a property in Morocco, the rules for Moroccans residing abroad follow their own logic — see the French-language guide on the MRE case linked from this article's French version. And if your property does not qualify for the exemption, do not overlook the official revaluation coefficient, which uprates the acquisition price and reduces the taxable gain.
That leaves the question of value: exempt or not, the declared price can be challenged by the administration if it looks lower than market value. An independent valuation report compliant with the RICS Red Book, produced by RICS-certified experts from the preliminary agreement onwards, documents the property's condition, floor areas and comparables — in support of the prior ruling request as well as the filing. From MAD 3,500 excl. VAT, firm quote within 24 hours: see our real estate appraisal service. ReaConsult, founded in 2019, has delivered more than 5,000 valuations and operates from 6 cities across Morocco (4.9/5 over 47 client reviews). One useful clarification: a private valuation informs and strengthens amicable negotiation and your tax file; in court litigation, it is the judge who appoints the judicial expert.
7. FAQ
How long must I have lived in the property to be exempt from TPI?
The sale of a main residence is exempt from TPI provided the property has been occupied as the seller's main home, without interruption, for at least 6 years before the sale. Below that threshold, TPI applies at the general rate of 20% of the net gain, with a floor set by the minimum contribution of 3% of the sale price.
Which documents prove occupation as a main residence?
The tax administration assesses occupation on documentary evidence: the occupation file relies in particular on housing-tax receipts and utility bills attached to the dwelling over the whole period. The more continuous and consistent the file is across the 6 years, the harder the exemption is to challenge. The precise list of accepted documents depends on the texts in force and administrative practice: have your file validated by your notary or a tax adviser before the sale.
Does letting the property make me lose the exemption?
Yes — it is the most common trap: the exemption presupposes occupation as a main home, and it applies provided the property does not generate rental income. A property that is let — even partially or temporarily — is no longer occupied on that basis, and declared (or detected) rents directly contradict the occupation file.
Can the exemption be validated before the sale?
Yes, through the prior tax ruling request (article 234 quinquies of the Moroccan Tax Code, for sales since 1 July 2023): filed electronically within 30 days of the preliminary sale agreement, it can cover the right to the exemption itself. The administration replies within 60 days with a certificate valid for 6 months; a seller who files in line with the ruling is exempt from tax audit on that sale. Without the ruling, the seller advances, on a provisional basis, the difference between 5% of the sale price and the tax declared, refunded automatically if no adjustment procedure is opened within 90 days.
How much does a valuation report to document the property's value cost?
ReaConsult valuations start from MAD 3,500 excl. VAT, with a firm quote within 24 hours. The report, compliant with the RICS Red Book and produced by RICS-certified experts, documents the property's market value — useful in support of a prior tax ruling request or against a challenge to the declared price. ReaConsult, founded in 2019, has delivered more than 5,000 valuations from 6 cities across Morocco (4.9/5 over 47 client reviews).
Selling your main residence? Lock in the exemption before you sign.
RICS-certified experts — a valuation report in support of your prior ruling request and your tax filing. RICS Red Book-compliant reports, anywhere in Morocco, from MAD 3,500 excl. VAT.
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Note: The conditions, rates and thresholds cited (main-residence exemption after at least 6 years of uninterrupted occupation, 20% TPI, 3% minimum contribution, MAD 30,000 threshold, prior tax ruling under article 234 quinquies of the CGI) are indicative, based on the Moroccan Tax Code and the finance law in force, and may be amended by annual finance laws. Confirm your personal situation with your notary or a tax adviser before any decision. This article is also available in its version française. To document your property's value, see our real estate appraisal service or the blog.