Property advice
Real estate profit tax in Morocco: how it is calculated
When you sell a property in Morocco, the gain is taxed. Here is how the real estate profit tax (TPI) is calculated, which costs reduce the taxable base and the exemptions provided by the General Tax Code.
Find my homeThe rate: 20% with a 3% minimum
TPI equals 20% of the net taxable gain. It cannot be lower than a minimum of 3% of the sale price, even if the gain is small or nil.
The seller bears it; the notary calculates the amount and withholds it at the time of sale.
How the gain is calculated
The gain is the difference between the sale price (less selling costs) and the purchase price (plus purchase costs and documented improvement expenses), the purchase price being uprated with coefficients published by the tax administration.
Keep all your evidence: purchase deed, notary fees and duties paid, invoices for extension or improvement works.
Exemptions
The General Tax Code provides several exemptions under precise conditions, notably the sale of a home occupied as a main residence for a minimum period, and some low-value sales.
Conditions change with finance laws: have your situation confirmed by your notary or the tax administration (DGI) before setting your net proceeds.
Inherited or gifted property
For an inherited property, the purchase value is in principle its value on the date of death, as declared. For a gift, rules differ with the family relationship: check before selling.
Filing and payment
The real estate profit return is filed within the legal deadline after the sale, in practice by the notary, who pays the tax to the Treasury. An early calculation at the preliminary contract avoids surprises.
Other practical guides
- Selling a property in Morocco: a step-by-step guide
- Titled or untitled property in Morocco: what to know
- Buying safely in Morocco: the right reflexes
- New or resale in Morocco: how to choose
- Residential leases in Morocco: what Law 67-12 says
- Co-ownership in Morocco: how the syndic works
- Selling an inherited property in Morocco: the steps
- Setting the right sale price in Morocco
- Rental yield in Morocco: the calculation method
Frequently asked questions
What is the TPI rate in Morocco?
20% of the net gain, with a minimum of 3% of the sale price.
Is the main residence exempt?
The General Tax Code exempts a main residence subject to a minimum occupation period and supporting documents. Have your case checked by the notary.
Who calculates the TPI?
The notary, from the purchase deed, costs and the works invoices you provide.
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Last updated: 2026-10-22