In brief: The real estate capital gain in Morocco is the profit realised on the sale of a property. It is subject to IR at a rate of 20% of the net profit, with a minimum contribution of 3% of the sale price (Art. 73-II-F-6° and Art. 144-II of the Tax Code). The calculation takes into account the revaluation of the acquisition cost using annual coefficients. A principal residence occupied for at least 5 years is exempt; if its sale price exceeds MAD 4,000,000, a minimum tax of 3% remains due on the portion of the price above that amount. The return must be filed, and the tax paid, within 30 days of the sale.
Definition of real estate capital gains — Art. 61-II
Article 61-II of the Tax Code defines the real estate capital gain as the profit realised on the occasion of:
- The sale of immovable property (built or unbuilt) located in Morocco
- The sale of real property rights: usufruct, bare ownership, surface rights, long lease (emphyteusis)
- The sale of shares or interests in real estate-predominant companies (SPI) not listed on the stock exchange, i.e. companies whose gross assets consist, for at least 50% of their value assessed at the opening of the financial year of the sale, of real property (excluding property used for their own operations) or of shares in other real estate companies, as well as the sale of shares in tax-transparent real estate companies
- Expropriation for public utility: the expropriation compensation is treated as the sale price
- Exchange of real property, treated as a double sale (each party makes a taxable disposal), and the partition of jointly owned property with a cash adjustment (soulte), taxed only on the profit relating to the partial disposal giving rise to the adjustment
The real estate capital gain is distinct from rental income, which concerns rents received. Here, the taxation applies to the capital gain on sale, i.e. the enrichment realised between the acquisition and the resale of the property.
Calculation of the net profit — Art. 65
The taxable real estate capital gain is determined according to the following formula:
Net profit = (Sale price − Sale costs) − (Acquisition price + Acquisition costs + Investment expenditure) × Revaluation coefficient
Sale price
The sale price used is the price declared in the deed of sale. However, the tax authorities may adjust this price if they consider it to be lower than the market value of the property at the date of sale, based on comparables or an expert valuation.
Revalued acquisition cost
The acquisition price, increased by acquisition costs and investment expenditure, is revalued by multiplying it by the coefficient for the year of acquisition, calculated by the tax authorities on the basis of the national cost-of-living index (Art. 65-II).
These revaluation coefficients neutralise the effect of inflation between the date of acquisition and the date of sale. The longer the holding period, the higher the coefficient, thereby reducing the taxable profit.
Example of coefficients (for illustrative purposes):
| Year of acquisition | Approximate coefficient |
|---|---|
| 2000 | 1.60 |
| 2005 | 1.45 |
| 2010 | 1.30 |
| 2015 | 1.18 |
| 2020 | 1.08 |
| 2024 | 1.02 |
The exact coefficients are calculated by the tax authorities on the basis of the national cost-of-living index (3% per year for years before 1946); the values above are illustrative.
Flat-rate acquisition costs
In the absence of proof of actual costs, acquisition costs are assessed at a flat rate of 15% of the acquisition price. These costs are deemed to cover notary fees, registration duties, land conservation fees and intermediary commissions.
If the taxpayer has evidence of actual costs exceeding 15%, they may deduct them at their actual amount.
Investment expenditure
Deductible investment expenditure includes construction, reconstruction, extension, renovation or improvement works, duly supported by invoices. Routine maintenance works are not deductible under this heading.
Tax rate — Art. 73-II-F-6°
The net real estate capital gain is subject to IR at the rate of 20%.
Minimum contribution — Art. 144-II
Regardless of the amount of the net profit, a minimum contribution of 3% of the sale price is due. In other words:
- If 20% of the net profit > 3% of the sale price → the taxpayer pays 20% of the net profit
- If 20% of the net profit < 3% of the sale price → the taxpayer pays 3% of the sale price
This minimum contribution guarantees tax revenue even when the net profit is low or when the revaluation of the acquisition cost absorbs a large part of the capital gain.
Exemptions — Art. 63
The Tax Code provides for several cases of total or partial exemption from real estate capital gains tax:
Principal residence
The sale of the principal residence is exempt subject to the following cumulative conditions:
- The property has been the owner’s principal residence (or that of a member of a tax-transparent real estate company) for at least 5 years on the date of sale, without having been let or used for business purposes
- The exemption can be obtained only once in any 5-year period; a maximum of one year from the date the property became vacant is allowed to complete the sale
- The land on which the building stands is exempt up to 5 times the built-up area
The profit is then exempt whatever the price. However, where the sale price exceeds MAD 4,000,000, a minimum tax of 3% is due on the portion of the price above that amount (Art. 144-II-2°).
Sales between ascendants, descendants and spouses
Profits from gratuitous transfers (donations) between the following are exempt:
- Ascendants and descendants (parents-children, grandparents-grandchildren)
- Spouses
- Brothers and sisters
This exemption facilitates intra-family wealth transfers without tax liability. By contrast, a sale between these same persons (transfer for consideration) remains fully taxable under ordinary rules.
Other cases of exemption
- Sales of immovable property where the total value does not exceed MAD 140,000 during the calendar year
- Sale of undivided rights in agricultural property located outside urban perimeters between co-heirs (Art. 63-II-C). Otherwise, the resale of an inherited property is taxable; the acquisition price used is the market value of the property on the date of death, as recorded in the inventory or declared by the heir (Art. 65-II)
- Sale of social housing within the meaning of Article 92-I-28°, used by its owner as a principal residence for at least 4 years on the date of sale (Art. 63-II-D)
Worked example
A taxpayer sells an apartment in 2026 that was acquired in 2010:
| Item | Amount |
|---|---|
| Sale price | MAD 1,800,000 |
| Acquisition price (2010) | MAD 900,000 |
| Flat-rate acquisition costs (15% x 900,000) | MAD 135,000 |
| Justified investment expenditure | MAD 80,000 |
| Acquisition cost before revaluation | MAD 1,115,000 |
| Revaluation coefficient (year 2010, illustrative value) | 1.30 |
| Revalued acquisition cost | 1,115,000 x 1.30 = MAD 1,449,500 |
Net profit calculation:
Net profit = 1,800,000 − 1,449,500 = MAD 350,500
IR calculation:
- IR on net profit: 350,500 x 20% = MAD 70,100
- Minimum contribution: 1,800,000 x 3% = MAD 54,000
Since the IR (70,100) > MC (54,000), the taxpayer pays MAD 70,100.
If the net profit had been lower (e.g. MAD 200,000 → IR = MAD 40,000), the minimum contribution of MAD 54,000 would have applied.
Filing and payment — Art. 83
The taxpayer must:
- File a real estate capital gains return, on the form prescribed by the tax authorities, within 30 days of the date of sale (Art. 83-I)
- Attach supporting documents: deed of sale, deed of acquisition, evidence of acquisition costs and investment expenditure
- Pay the corresponding tax to the tax collector within the same deadline (Art. 173-I). Except for exempt transactions, a seller who does not file on the basis of a settlement certificate (prior opinion requested within 30 days of the preliminary sale agreement, Art. 234 quinquies) must also pay, on a provisional basis, the difference between the declared tax and 5% of the sale price
- The notary must read out to the parties Articles 83, 173-I and 234 quinquies of the Tax Code (Art. 139-VI); the obligation to file and pay remains with the seller
Failure to meet the 30-day deadline exposes the taxpayer to a 5% surcharge on the tax if the return is filed no more than 30 days late, 15% beyond that and 20% in the case of an ex officio assessment (minimum MAD 500, Art. 184). Late payment also triggers a 10% penalty (5% if the delay does not exceed 30 days) and a 5% surcharge for the first month, then 0.50% for each additional month or part of a month (Art. 208).
Reference texts: General Tax Code 2026 — Art. 61-II, Art. 63, Art. 65, Art. 73-II-F-6°, Art. 83, Art. 144-II — Circular Note No. 717
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Frequently asked questions
Am I exempt if I sell my principal residence after 5 years?
Yes. Since the 2023 Finance Law, the principal residence exemption requires the property to have been your principal residence for at least 5 years on the date of sale (Art. 63-II-B), without being let or used for business purposes. After 5 years, the profit is exempt whatever the price. If the sale price exceeds MAD 4,000,000, a minimum tax of 3% remains due only on the portion of the price above that amount (Art. 144-II-2°).
How are the revaluation coefficients determined?
The revaluation coefficients are calculated by the tax authorities on the basis of the national cost-of-living index (Art. 65-II); for years before 1946, a flat rate of 3% per year is used. The applicable coefficient is the one corresponding to the year of acquisition of the property. It applies to the acquisition price increased by acquisition costs and investment expenditure. The older the property, the higher the coefficient, which reduces the taxable profit.
What happens in the case of a sale at a loss?
If the sale price is lower than the revalued acquisition cost (acquisition price + costs + investment expenditure, multiplied by the coefficient), there is no real estate capital gain. However, the minimum contribution of 3% of the sale price remains due. No carryforward of real estate losses is provided for under the Tax Code, unlike loss carryforwards for professional income.
Is the sale of SCI shares subject to real estate capital gains tax?
Yes, when the SCI (civil real estate company) is a tax-transparent real estate company within the meaning of Article 3-3° of the Tax Code, or an unlisted real estate-predominant company, i.e. one whose gross assets consist, for at least 50% of their value assessed at the opening of the financial year of the sale, of real property not used for its own operations. The sale of shares is then treated as a property sale and subject to IR on real estate capital gains under the same conditions (20% of net profit, 3% MC on sale price).
