Real Estate Capital Gains Tax in Morocco: A Simplified Guide Based on the 2026 General Tax Code

The Real Estate Capital Gains Tax (TPI) often causes confusion for property owners who want to sell their property. However, this tax follows clear and well-defined rules set out by the the General Tax Code (CGI).in particular Articles 61 to 65.

In this article, we explain what a real estate gain is, which transactions are taxable, how the taxable base is calculated, what rates apply, and in which cases an exemption may be available — all explained clearly, without unnecessary legal jargon.

Rental Income vs. Capital Gains: What’s the Difference?

Before discussing the Real Estate Capital Gains Tax (TPI), it’s important to distinguish between two concepts set out in Article 61 of the General Tax Code:

🔹 Rental Income

They mainly refer to income from rentals, including in particular:

  • rents from built or unbuilt properties; ;

  • income from agricultural properties; ;

  • the rental value of goods made available free of charge to third parties (except in cases of exclusion); ;

  • certain compensations related to buildings; ;

  • the income distributed by the OPCIs.

👉 These revenues are taxed annually and are not subject to the TPI.

🔹 Land profits

These correspond to the gains realized during a sale or transfer of ownership. It is this category that triggers the application of the Real Estate Capital Gains Tax.

Which real estate transactions are subject to the Real Estate Profits Tax (TPI)?

According to Article 61-II of the French General Tax Code (CGI), the following are considered taxable property profits:

  • from the sale of a building located in Morocco or from the transfer of real estate rights; ;

  • expropriation for reasons of public utility, including when it results from an act of trespass; ;

  • of any transfer of ownership resulting from a final court decision; ;

  • of the contribution to a company of buildings or real estate rights; ;

  • of the transfer or contribution of shares or stock in companies whose purpose or predominantly real estate business is not listed on the stock exchange; ;

  • of the exchange of buildings, which is considered for tax purposes as a double sale; ;

  • of the division of jointly owned property with equalization payment, the tax only being levied on the value of the equalization payment; ;

  • transfers free of charge (donations); ;

  • of the transfer of an asset from private property to the assets of a company, when the value retained is greater than the acquisition price.

How is taxable real estate profit calculated?

The calculation of land profit is governed by article 65 of the CGI.

1️⃣ The transfer price

It corresponds to:

  • at the sale price stated in the deed, or

  • to the value estimated or adjusted by the tax authorities if the declared price does not correspond to the actual market value.

The transfer costs are deducted, including:

  • real estate agency fees,

  • brokerage fees,

  • fees for legal documents,

  • duly justified eviction compensation.

2️⃣ The purchase price

It is increased by:

  • Acquisition costs (registration fees, notary fees, land conservation fees, etc.), assessed at a flat rate of 15 %, unless a higher amount is justified; ;

  • duly justified investment expenditures (construction, renovation, expansion, improvement); ;

  • interest or margins related to bank or participatory financing (Mourabaha, Ijara Mountahia Bitamlik…).

👉 This price is then reassessed using an official coefficient, based on the national cost of living index, in order to neutralize the effect of inflation.

Tax rates and minimum tax

  • Standard rate: 20 % of net taxable profit

  • Specific rate: 30 % for the sale of undeveloped land located in urban areas (as provided for by law)

🔸 The tax floor

Even in the absence of actual profit, a minimum of 3 % of the selling price is required by the tax authorities.

These rates are final for Income Tax purposes, meaning that real estate profit is not subject to additional taxation.

What are the main exemptions provided for by law?

Article 63 of the French General Tax Code (CGI) provides for several important exemptions:

✅ Primary residence

The sale of a property occupied as a main residence for at least 5 years, with a tolerance of one year after the property has been vacant, is exempt (only once during this period).

This exemption also applies to:

  • to Moroccans Residing Abroad (MRE),
  • to the assets acquired by Ijara Mountahia Bitamlik,
  • to the land supporting the construction, up to a limit of 5 times the covered area.

✅ Short sessions

Sales whose total annual amount does not exceed 140,000 DH are exempt.

✅ Agricultural Heritage

The division between co-heirs of agricultural property located outside urban areas is exempt.

✅ Social housing

The sale of a social housing unit (50 to 80 m², capped at 250,000 DH), occupied for at least 4 years as a main residence, benefits from the exemption.

✅ Tax-exempt donations

Transfers free of charge between:

  • parents and children,
  • husband,
  • siblings,
  • or within the framework of a judicial kafala, are also exempt from the Real Estate Profits Tax (TPI).

Calculate your TPI: a quick and indicative estimate

Try our online calculator for a quick estimate.

⚠️ The results are provided for informational and estimated purposes only. To find out the exact amount and obtain advice tailored to your situation, consult a professional, such as a real estate agent or a notary.

TPI Calculator

Estimated Real Estate Capital Gains Tax (Morocco 2026)

Important : This is an indicative estimate only. Consult a notary or the tax authorities.

Based on CGI 2026 • Coefficients up to 2025 • Unofficial estimate