1. What the CGI says — and why the MRE case stands apart
The principle is well known: the sale of a main residence is exempt from TPI provided the property was occupied as the seller's principal home for at least 5 years before the sale. For an MRE, that occupation condition collides head-on with reality: the actual home is in Paris, Brussels or Montreal, while the Moroccan property is occupied intermittently — holidays, family stays — or let, or left empty. The CGI provides particular conditions for non-resident taxpayers (article 63-II-B): the home an MRE keeps in Morocco, or one occupied free of charge by their spouse, ascendants or first-degree descendants, is treated as the main residence as long as it has been neither let nor put to professional use. How this applies to your precise situation must be checked against the text in force, case by case — and qualification decides everything.
2. Qualification traps: what makes the exemption collapse
- The property was let. Trap number one. The main-residence exemption is ruled out where the property generates rental income. An MRE who let the apartment during the years abroad — even partially, even to a relative for rent — undermines the principal-home qualification over the required period.
- The property is occupied by family. The CGI accepts a home occupied free of charge by the MRE's spouse, ascendants or first-degree descendants (article 63-II-B). Occupation by other relatives, siblings for instance, or against rent, does not fall within that case. Who occupies, on what basis and since when must be documented.
- The property changed use. The home must be kept as the MRE's residence in Morocco. A property that is let or put to professional use loses its main-residence status: this is a substantive condition, not a formula.
- The file cannot be verified. Even where the underlying facts are favourable, the exemption is lost for want of proof: without receipts, without bills, without consistency between documents, the qualification will not withstand a request for justification.
The cost of doubt is not neutral: if the exemption is denied, the sale falls into the general regime — TPI at 20% of the net gain with a floor of 3% of the sale price (minimum contribution, article 144 CGI). On a MAD 2,000,000 sale, the gap between “exempt” and “requalified” runs to tens of thousands of dirhams.
3. The file to build from abroad — and the tool to have it validated
The MRE seller faces a logistical handicap: the documents are in Morocco, the seller is not. The occupation file is therefore rebuilt remotely, and it pays to start early:
- Housing-tax and municipal-services-tax receipts in the taxpayer's name, over the whole occupation period claimed;
- Water and electricity bills consistent with genuine occupation;
- The original purchase deed, acquisition-cost receipts and works invoices — also useful for the TPI calculation if the exemption is not granted;
- Any additional anchoring evidence: mail received at the address, attestations, home-insurance history.
Above all, there is a tool designed to remove the doubt before the sale: the prior-ruling request (article 234 quinquies CGI, for sales since 1 July 2023). It can bear on the right to the exemption itself: filed electronically within 30 days of the preliminary sale agreement, it obliges the administration to respond within 60 days with an assessment certificate valid for 6 months — and a seller who declares in line with the ruling is exempt from tax audit on that sale. For an MRE who cannot manage a dispute from abroad years later, this is the most valuable insurance in the system. Conversely, without a prior ruling, the seller advances on a provisional basis the difference between 5% of the sale price and the tax declared, refunded if no audit is opened within 90 days.
4. When the exemption does not apply: the TPI calculation, coefficient included
If the qualification does not hold, all is not lost: the general regime contains a shock absorber often unknown to MRE sellers — the indexation coefficient of article 65 CGI. Published each year by ministerial order in the Official Bulletin (for 2026: order of 6 February 2026, Official Bulletin no. 7486), it revalues the purchase price for monetary erosion — and it weighs all the more heavily on long holding periods, which is the typical profile of an MRE property kept for years.
The formula: net gain = (sale price − selling costs) − (purchase price + acquisition costs + documented works + loan interest) × coefficient (acquisition costs: 15% flat allowance of the purchase price, more on supporting documents). TPI = 20% of the net gain, with a minimum of 3% of the sale price. Worked example with the official 2026 coefficients: an apartment bought for MAD 1,000,000 in 2010 (coefficient 1.296) and resold for MAD 1,800,000 in 2026, acquisition costs at the 15% flat allowance (MAD 150,000): revalued acquisition price = (1,000,000 + 150,000) × 1.296 = 1,490,400; net gain = 1,800,000 − 1,490,400 = MAD 309,600; TPI at 20% = MAD 61,920, above the minimum contribution (MAD 54,000), hence due in full. Without the coefficient, the same sale would have been taxed on MAD 650,000 — MAD 130,000 of tax.
5. Two cross-border reflexes: tax treaty and convertible account
- The tax treaty. For an MRE, the tax treaty between France and Morocco, or the one with the country of residence, organises how the two taxes fit together; have your situation checked by an adviser. In every case, a rigorous Moroccan file (return, evidence, documented value) makes the steps in the country of residence easier.
- The route of the funds. An MRE seller who intends to transfer the sale proceeds out of Morocco should check, before the deed, the traceability of the original investment and the banking channel used — convertible dirham accounts play a central role here. The details fall under the exchange-control regulations in force: settle this with your bank and your notary upstream, not at the moment of the transfer.
The final link is the value of the property. Whether to support a prior-ruling request, defend a realistic sale price or secure the gain calculation, an independent appraisal report produced by RICS-certified experts and compliant with the RICS Red Book documents the market value methodically — a decisive asset when managing a sale from abroad. From MAD 3,500 excl. VAT, firm quote within 24h. ReaConsult, founded in 2019, has completed over 5,000 appraisals from 6 cities across Morocco (client reviews published on Google) — see our real estate appraisal service. One useful clarification: a private appraisal informs and strengthens amicable negotiation and your tax file; in court proceedings, the judge appoints the judicial expert.
6. FAQ
Can an MRE claim the TPI main-residence exemption when selling in Morocco?
The exemption applies to a main residence occupied as the seller's principal home for at least 5 years before the sale, and the CGI sets out particular conditions for non-resident taxpayers. For an MRE, article 63-II-B treats as the main residence the home they keep in Morocco, or one occupied free of charge by their spouse, ascendants or first-degree descendants, as long as it has been neither let nor put to professional use. Check your case against the current text — and have it validated upfront through the prior-ruling request (article 234 quinquies CGI).
Does a property let during my absence remain a main residence?
This is the most common trap. The exemption is ruled out where the property generates rental income: an MRE who let the apartment — even for a few years within the period — severely weakens the qualification. Likewise, occupation by relatives or a home left empty is not automatically the taxpayer's own principal residence.
What documents should I gather from abroad?
Housing-tax and municipal-services-tax receipts, water and electricity bills in your name, the original purchase deed, acquisition-cost receipts and works invoices. Remote reconstruction takes time: start well before the preliminary agreement, since the prior-ruling request must be filed within 30 days of its signature.
How is TPI calculated if the exemption does not apply?
Net gain = (sale price − selling costs) − (purchase price + acquisition costs + documented works + loan interest) × the article 65 CGI indexation coefficient (acquisition costs: 15% flat allowance, more on supporting documents). TPI = 20% of the net gain, with a minimum of 3% of the sale price (article 144 CGI); disposals totalling no more than MAD 140,000 in the year are exempt (article 63-II-A). The tax treaty between France and Morocco, or the one with the country of residence, organises how the two taxes fit together; have your situation checked by an adviser.
How much does an appraisal cost to document the value before selling?
From MAD 3,500 excl. VAT, firm quote within 24h. RICS Red Book-compliant reports by RICS-certified experts — in support of a prior-ruling request or a TPI return, particularly useful for an MRE managing a sale from abroad.
MRE selling a property in Morocco?
RICS-certified experts — documented market value in support of your prior-ruling request or TPI return, managed remotely, Red Book-compliant reports, anywhere in Morocco.
Note: Exemption conditions, rates, coefficients and mechanisms mentioned (CGI, annual ministerial orders, prior ruling) are indicative and based on the texts in force, which annual finance laws may amend. A non-resident's main-residence qualification is assessed case by case: have your tax position confirmed by a notary or tax adviser against the current text before any decision. Also available in French: version française. See more analyses on the ReaConsult blog or our real estate appraisal service.