TPI on inherited property in Morocco — calculation, exemptions, CGI 2026 guide
How much will it cost you to sell an inherited property in Morocco? The answer starts with a General Tax Code calculation… anchored on the date of death. Understanding this mechanism prevents paying TPI twice.
Most heirs discover the existence of the Property Profits Tax (TPI)on the day they sign the sale agreement for a property received through inheritance. Relief at receiving the sale price, then surprise at the notary's office: a significant share of the proceeds goes to TPI. And later still, sometimes, a tax reassessment from the DGI when the administration considers the value declared at the opening of the succession was too low. This dual mechanism — calculation anchored on a value set years earlier, articulation with the initial ANCFCC registration — makes inheritance TPI one of the most poorly anticipated tax topics in Morocco.
1. The principle: what is TPI?
The Property Profits Tax (TPI) is provided by the Moroccan General Tax Code (CGI). It taxes the profit realised by any individual when transferring for consideration a property located in Morocco (sale, exchange, contribution to a company, etc.).
The standard rate is 20% applied to the net taxable profit, with a 3% minimum on the sale price (the taxpayer pays the higher of the two). TPI is generally paid before or at the registration formality with the notary or adoul, making it an operational prerequisite to release of the sale proceeds.
2. The taxable profit formula
The taxable profit is calculated under a CGI formula that looks straightforward on paper but becomes subtle in practice:
− Sale costs (agency commission, diagnostics, etc.)
− Acquisition price revalued by the indexation coefficient
− Deductible costs (acquisition notary fees, justified works, etc.)
TPI due = max(20% × taxable profit; 3% × sale price). The 3% minimum applies even in the absence of real profit — a floor contribution protecting the Treasury against voluntarily loss-making declarations.
3. The inheritance specificity: « acquisition price » becomes the value declared at death
When the heir sells the property, they didn't « buy » in the classical sense. The CGI therefore defined a substitution rule: the acquisition price to be retained in the taxable profit calculation is the value declared at the date of opening the succession (date of death of the deceased) — the one figuring in the declaration registered with the DGI and recorded at ANCFCC.
This rule has a major economic consequence:
- If the value declared at succession opening was set low (to reduce registration duties at succession), the taxable profit at TPI on future sale will mechanically be higher.
- If the value was set at fair market value (generally by independent appraisal), the TPI taxable profit will be consistent with market reality.
- The temptation to undervalue at opening to « pay less duties » almost always backfires on the heir at sale.
4. The indexation coefficient — which reduces taxable profit
The CGI provides an indexation coefficient published annually by the DGI that revalues the acquisition price between the reference date (here, death) and the sale date. This coefficient reflects general price evolution and has the effect of reducing the taxable profit — therefore the TPI due.
The longer the delay between succession and sale, the more the coefficient revalues the base, and the more moderate the TPI. This is why in some cases keeping the property for several years before sale can be fiscally more advantageous than selling quickly.
5. Key exemptions
Primary residence: the CGI provides a full TPI exemptionfor the sale of a property constituting the seller's primary residence, subject to a continuous holding and effective occupation duration prior to sale. The exact duration is set by successive Finance Acts and must be verified at the time of sale. For an heir, the holding duration generally takes into account the deceased's holding period if the succession has been open long enough — fine articulation requires validation by a notary or tax advisor.
Other specific exemptions apply case by case: social housing sales under conditions, transfers to family members, succession partition without balancing payment (allotment among co-heirs in proportion to their rights is not constitutive of a sale).
6. Illustrative case (pedagogical simulation)
Fictitious pedagogical assumptions — figures correspond to no real case. Any individual case requires specific analysis.
Scenario A — Value declared at succession underestimated to 1.5 M MAD (to reduce registration duties). 2026 sale price: 3.5 M MAD. Taxable profit: ~2 M MAD (before coefficient and deductibles). TPI 20%: ~400 k MAD.
Scenario B — Value declared at succession at fair market value (RICS Red Book appraisal), 2.5 M MAD. Identical 2026 sale price: 3.5 M MAD. Taxable profit: ~1 M MAD. TPI 20%: ~200 k MAD.
Final gap: ~200 k MAD TPI saved on the sale, against marginally higher initial registration duties (to compare case by case based on the scale applicable at succession time).
7. Five reflexes at succession opening
- Request an independent appraisal compliant with RICS Red Book at the date of death — not a free estimate, not an agency opinion. The report serves as a defensible technical document for the DGI.
- Declare at fair market value — resist the temptation to underdeclare. The registration duties saved are almost always lost at future sale through heavier TPI, or even tax reassessment if the DGI contests retrospectively.
- Keep all supporting documents for the deceased's initial acquisition if available, significant works, and any rental situation.
- Anticipate future sale taxation from the opening — how much would TPI cost if the heir sold in 5 years, 10 years? The indexation coefficient and primary residence exemptions change the picture.
- Coordinate with notary, tax advisor and appraiser — a well-orchestrated succession mobilises the three competencies.
8. MRE heirs special case
TPI applies to profits realised on properties located in Morocco regardless of the heir's tax residence. A French, Belgian, or other MRE heir remains liable for Moroccan TPI under the same rules as a resident, subject to applicable international tax conventions (notably the France-Morocco convention to avoid double taxation).
For MRE heirs, two specific complications: coordination of declarations between Morocco (TPI on sale) and the country of tax residence (foreign capital gain declaration where applicable); and practical difficulties of remote administrative management — hence the importance of having a solid reference value from succession opening, archived and enforceable.
For more
On the general framework of Moroccan property taxation 2026, see our dedicated dossier. On the RICS Red Book Bases of Value underpinning any serious appraisal, our comprehensive guide.
⚡ Appraisal at succession opening
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RICS Red Book compliant report at date of death — solid base for DGI, ANCFCC, and future TPI. Personalised quote within 24h. Coordination available with notary and tax advisor.