If you sell a property in Morocco for more than you paid, the profit is taxed. The principle is simple. The details are where people make mistakes, so here is a clear picture before you put a price on your villa or apartment.
How the gain is calculated
The taxable profit is the sale price minus the acquisition cost. The acquisition cost is not only the price in the deed: it can include the purchase fees, the cost of documented works, and an adjustment that takes into account the number of years you owned the property. Keep every invoice. A gain computed with proof is almost always smaller than one computed without.
The rate
The tax on the net gain is generally charged at a flat rate in the region of 20 percent, with a minimum payment calculated on the sale price when the gain turns out to be low or nil. The finance law can alter these figures, so ask the notary for the current calculation. The notary usually collects the tax at the time of signature, which means you will not receive your full proceeds until it is paid.
Exemptions to know about
- A main residence can be exempt if you have lived in it for a minimum number of years and the sale price stays under a ceiling.
- Some transfers within the family are treated differently.
As a non-resident owner with a holiday home, you will usually not qualify for the main residence exemption. Do not assume you do.
An illustration, not a quote
You bought a riad for 3,000,000 MAD, spent 400,000 MAD on documented works, and sell for 4,200,000 MAD. The gain before adjustments is 800,000 MAD. After the tax rules, the amount due is calculated on that base, not on the whole price. Your notary will work out the exact figure. This example shows why invoices matter.
Where the tax interacts with other topics
If you under-declared the price when you bought to lower the registration duty, your gain will look inflated now. See notary and registration fees. And to move the proceeds abroad, you need tax paid and documents ready, see repatriating your money.
Practical steps before selling
- Gather the purchase deed, invoices and any renovation permits.
- Ask the notary for a calculation before you accept an offer.
- Sell with a price that leaves you the net amount you need.
Frequently asked questions
Who pays the capital gains tax, the seller or the buyer?
The seller owes it. In practice the notary collects it from the proceeds at signing, so the buyer should check it has been settled.
Do I pay even if I sell at a loss?
If there is no gain, a minimum payment calculated on the sale price may still apply. Ask the notary to calculate it before you accept an offer.
How do renovation costs count?
Documented works can be added to the acquisition cost and reduce the gain. Keep invoices from registered contractors.
This is general information; tax law changes. Confirm with a notary or an accountant. If you are thinking of selling, we can value your property and explain the process.