Morocco's Real Estate Profit Tax: how it's calculated, and how to plan for it before you sell

A serious investor buying in Marrakech should already know the cost of exiting before signing the purchase. The Real Estate Profit Tax (TPI) runs at 20% of the net capital gain on resale — but a minimum contribution of 3% of the sale price applies even without a demonstrable gain. Between the revaluation coefficient, deductible costs and exemptions tied to precise holding periods, the real bill often departs from the intuitive estimate. Here is the exact mechanism, with 2026 figures.

How the taxable gain is calculated

Morocco’s General Tax Code (articles 61 to 65 and 144) defines the taxable net gain as the difference between the sale price and the revalued acquisition price, reduced by justified costs and works. The formula runs as follows:

• Revalued acquisition price = original purchase price × the revaluation coefficient for the year of acquisition
• Deductible acquisition costs = notary fees, registration duties and land registry fees, at a flat 15% of the purchase price (or more if backed by invoices)
• Deductible works = documented construction, extension or improvement expenses
• Net gain = sale price − revalued acquisition price − costs − works
• TPI due = 20% of the net gain, with a floor of 3% of the sale price

Without supporting invoices for actual costs and works, the tax authority applies the 15% flat allowance and grants no deduction for works — which mechanically inflates the taxable gain. Keeping invoices from the moment of purchase, not just when reselling, directly changes the final amount.

The revaluation coefficient: the variable many sellers overlook

The revaluation coefficient, set out in Article 65 of the CGI, corrects for monetary erosion between purchase and resale. It is published every year by order of the Minister of Economy and Finance in the Official Bulletin. For sales completed in 2026, the applicable grid comes from the order of February 6, 2026 (Official Bulletin No. 7486 of February 26, 2026). The longer the holding period, the higher the coefficient — which reduces the taxable gain accordingly.

Year of acquisition	2026 coefficient
1980	4.646
2000	1.585
2010	1.296
2022	1.078
2024	1.008
2025	1.000

On a property bought for 800,000 MAD in 2010 and resold for 1,500,000 MAD in 2026, applying the coefficient (1.296) brings the taxable gain down from 640,000 to around 320,000 MAD — a TPI saving of several tens of thousands of dirhams compared with a calculation that ignores the coefficient.

One point to watch: the coefficient applies only to the acquisition price, never to works or costs, which remain deductible at their nominal amount.

The 3% minimum contribution trap

On a short holding period, the coefficient has a limited effect and sometimes isn’t enough to bring the theoretical TPI below the legal floor. The rule is strict: the tax due is whichever is higher between 20% of the net gain and 3% of the total sale price, regardless of what the first calculation shows. A seller who resells quickly with a modest gain can therefore end up paying more than the “on paper” figure suggested — one of the most common misunderstandings among sellers who discover their actual bill at the notary’s office rather than before signing. TPI must be declared within 30 days of signing the deed of sale, and it is generally the notary who collects the amount and forwards it to the tax authority.

Available exemptions, and their strict conditions

Several situations allow for a full exemption, but each requires precise supporting documents:

• Main residence: full exemption if the property was occupied continuously and exclusively as a main residence for at least 6 years before the sale. Renting it out, even partially, during that period voids the exemption. Expected evidence includes a residence certificate, water and electricity bills in the occupant’s name, and a national ID card showing the property’s address.
• Family transfer: a sale between ascendants, descendants or spouses can be exempted, subject to supporting documents (marriage certificate, proof of filiation).
• Net gain below 30,000 MAD: full exemption, regardless of the holding period or the property’s status.
• Compliant social housing, occupied by its owner for at least 4 years.

For a second home or a standard rental investment — the most common profile in Marrakech — none of these exemptions apply: TPI is due under the general rules.

What this means for a foreign or Moroccan-abroad (MRE) investor

TPI payment through the notary has a discharging effect: once settled, no later reassessment can apply to that same gain. For an owner tax-resident in France, Belgium or Spain, the applicable tax treaty generally gives Morocco the primary right to tax, with a possible tax credit in the country of residence — a point worth confirming with a local tax advisor before filing abroad. Since 2023, it has also been possible to request a preliminary opinion from Morocco’s tax authority within 30 days of the preliminary sale agreement, which locks in the tax amount before the final signing — particularly useful for a seller managing the transaction remotely.

Checklist before selling (or buying with resale in mind)

• Keep every acquisition, notary and works invoice from the moment of purchase, not just when it’s time to sell
• Calculate the revalued acquisition price using the official coefficient for the year of purchase, never the nominal price
• Always compare 20% of the net gain against 3% of the sale price: the higher amount is what’s due
• Check whether an exemption (main residence ≥ 6 years, family transfer, net gain < 30,000 MAD) genuinely applies, with the matching evidence
• For a cross-border file, request a preliminary tax opinion and check the applicable tax treaty in the country of residence

TPI isn’t a surprise if it’s factored in from the purchase: it belongs in the same return calculation as the price, the acquisition costs and the rental taxation detailed in our guide to real estate taxes in Marrakech. A seller who discovers the mechanism on signing day at the notary’s office always has less room to maneuver than a buyer who planned for it from the preliminary agreement onward.