Detailed explanation
TPI applies to profit realised by individuals on the sale of Moroccan real estate. Rate: 20% of the net profit ((sale price − selling costs) − (acquisition price + acquisition costs + improvement costs + loan interest) × indexation coefficient). Minimum: 3% of sale price. Exemptions: primary residence for at least 5 years, total disposals of the year up to 140,000 MAD, gratuitous transfers between ascendants and descendants, spouses and siblings. Critical to factor into net exit IRR calculations.
Moroccan example
A villa acquired in 2015 at 4 M MAD sold in 2026 at 6.5 M MAD: inflation-adjusted base ~5.2 M, gain 1.3 M, TPI = 260,000 MAD. Net to seller: 6.24 M MAD.
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