Property Taxation in Morocco: The Complete Guide 2026

In brief: A property in Morocco is subject to four distinct tax regimes depending on its stage in the property lifecycle: purchase triggers a registration fee; ownership is subject to two annual local taxes; letting means that rental income is subject to income tax; and resale results in tax being levied on the profit made. This guide, updated on 14 August 2026, sets out the exact rates, thresholds and deadlines.

Understanding property taxation in Morocco in 2026

A property in Morocco goes through four successive tax stages: acquisition, annual ownership, letting, and then resale. Each of these stages is subject to a specific tax, with its own rate, tax base and deadline for filing a tax return.

The General Tax Code (CGI) 2026, published by the Ministry of the Economy and Finance on 29 December 2025, serves as the reference for all the rules set out here. The 2026 Finance Act, published in the Official Gazette on 16 December 2025, also introduces several amendments, which we set out in detail in the following sections.

A clear distinction should be made between the taxes as such, paid to the Moroccan tax authorities (registration fees, local taxes, income tax), and incidental costs which accompany a transaction without forming part of its tax components. The fees of the notary and fees Land registration fees fall into this second category: they are added to the overall cost of a transaction, but are not subject to taxation.

Taxation on purchase: registration fees and associated costs

Before going into detail about each rate, it is worth noting that land registry fees and notary’s fees are added to these registration duties without forming part of the tax itself: they are contractual charges, distinct from the tax.

Registration fee of 4 % on built premises

The purchase of a building intended for residential, commercial, professional or administrative use is subject to a registration fee of 4 %. This rate, set out in the 2026 tax guide for Moroccans living abroad, covers the majority of common transactions: flats, villas, commercial premises and office space.

Reduced rate of 3 % for social housing under a scheme

The first sale of social housing or low-value properties is subject to a reduced stamp duty of 3 %, provided that the developer, whether a natural or legal person, has entered into an agreement with the State in accordance with the terms set out in the General Tax Code. This special scheme applies only to the first sale of the property, and never to subsequent resales.

The 2 % surcharge in the event of an untraceable payment

For transfers for consideration exceeding 300,000 DH, an additional duty of 2 % may apply if the document does not specify the payment terms and details, or if the price is not paid in accordance with the terms set out in Article 11-II of the CGI. Where payment is made partly in cash and partly in accordance with the permitted methods, the surcharge applies only to the portion paid in cash.

New for 2026: 5 % on the disposal of shares in property companies

The 2026 Finance Act, published in the Official Gazette on 16 December 2025, sets the figure at 5 % the registration duty applicable to transfers, whether for consideration or free of charge, of shares or units in transparent property companies and companies with a predominantly property-based portfolio whose securities are not listed on a stock exchange. This rate, which is distinct from the 4 % rate applicable to the direct purchase of a built property, reduces the tax advantage of structuring an acquisition through company shares rather than by purchasing in one’s own name.

Key points to note regarding purchases: the standard rate of 4 % applies to the majority of purchases; a reduced rate of 3 % applies to social housing under a government scheme; a surcharge of 2 % is imposed on untraceable payments exceeding 300,000 DH, and, since 2026, a rate of 5 % has specifically applied to the sale of shares in unlisted property companies.

What annual taxes are levied on property ownership in Morocco?

Two separate local taxes are levied each year on property owned in Morocco: the housing tax and the municipal services tax. They are based on a common concept, the rentable value, that is to say, the theoretical annual rent that the property could generate if it were let, but they are subject to different rules.

The council tax: who pays it and what are the rates?

The housing tax is levied in the name of the owner or the usufructuary – that is, the person who holds the right to use the property and to receive income from it without holding full ownership – or, failing that, the possessor or occupier. It is calculated according to a scale based on annual rental value brackets: 0 % up to 5,000 DH, 10 % from 5,001 to 20,000 DH with a deduction of 500 DH, 20 % from 20,001 to 40,000 DH with a deduction of 2,500 DH, and 30 % above 40,000 DH with a deduction of 6,500 DH.

To illustrate this quick calculation method, let’s take an example: for a hypothetical annual rental value of 30,000 DH, the applicable rate is that for the 20,001 to 40,000 DH bracket, namely 20 %. The calculation is carried out as follows: (30,000 × 20 %) minus a deduction of 2,500 DH, giving an annual tax of 3,500 DH in this example.

The five-year exemption for new-build properties

A new building used as a main residence is exempt from council tax for five years, calculated from the year in which the works were completed. However, this temporary exemption applies only to the housing tax, not to the municipal services tax, as explained below.

The local services tax: rates and 75% allowance %

The municipal services tax is levied annually at the property’s location, in particular on built properties and structures. The rate is 10,50 % in urban areas, designated centres and summer, winter or spa resorts, and in 6,50 % in the outlying areas of urban municipalities. For the main residence, a tax allowance of 75 % the rental value applies.

How is rental income taxed in Morocco?

Property income refers to rent received in respect of a built or unbuilt property, provided that such letting does not fall within the category of business income. This rent is subject to income tax (IR), following the application of a flat-rate allowance.

The 40 % allowance and the calculation of net taxable income

Taxable net income is calculated by applying a 40% allowance % on gross rental income. This gross income includes not only the rent received, but also certain expenses normally borne by the landlord when they are charged to the tenant, as well as charges incurred by the landlord on the tenant’s behalf: a point that should be checked against the specific terms of the tenancy agreement.

To illustrate, let’s take a hypothetical gross annual rent of 100,000 DH: the allowance of 40 % reduces the income subject to income tax to 60,000 DH in this example.

The progressive income tax scale applicable to rent

Once the allowance has been applied, the net income is subject to the progressive income tax scale: 0 % up to 40,000 DH, 10 % from 40,001 to 60,000 DH, 20 % from 60,001 to 80,000 DH, 30 % from 80,001 to 100,000 DH, 34 % from 100,001 to 180,000 DH, and 37 % above that amount.

Voluntary declaration before 1 March

A landlord subject to self-assessment – that is, one who calculates and pays their own tax without it being withheld by a third party – must submit their annual property income tax return before 1 March in the year following that in which they were received.

Pay-as-you-earn and the option for the flat-rate tax of 20 %

Where rent is paid by a legal entity, or by an individual taxed on the basis of actual or simplified net profit, the payer applies a pay-as-you-earn before payment to the lessor. The CGI allows, via an electronic option, for the application of a flat-rate tax of 20 % on the gross taxable amount, provided that this amount is at least 120,000 DH.

A landlord who lets to a company sometimes asks me why their rent is paid at a reduced amount even though they haven’t signed anything to that effect: the withholding tax is deducted by the payer themselves, before payment, and the option to apply the flat-rate tax only applies once the legal threshold is exceeded.

Claire Emeriau

Selling a property: calculating and paying capital gains tax

The land profit refers to the capital gain realised on the sale of a property: it is the difference between the amount the seller receives from the sale and the original cost of the property.

How to calculate taxable capital gains

Taxable net profit is calculated as follows: the sale price less the costs of disposal, minus the purchase price plus the costs of acquisition. Keeping supporting documents for these costs, including any work carried out, reduces the taxable base accordingly in the event of a future resale.

Rate of 20 % and minimum contribution of 3 %

The profit realised is taxed at a rate of 20 %. A minimum contribution of 3 % The capital gains tax remains payable even in the absence of a profit, provided that the disposal is taxable. For a main residence valued at over 4,000,000 DH, specific rules apply to the exemption: this particular point should be confirmed with the tax authorities before any sale takes place.

In the property sale cases we handle, sellers sometimes discover at a late stage that tax remains due even though the sale did not result in any actual capital gain: the minimum tax of 3 % of the sale price is not dependent on the profit; it is calculated on the sale price itself.

Claire Emeriau

Exemptions to be aware of: the 140,000 DH threshold and the main residence

There are two main exemptions applicable to individuals. The first applies where the total value of property disposals made during a calendar year does not exceed 140,000 DH. The second relates to the sale of a main residence that has been owned as such for at least five years on the date of sale, by the owner or by members of a property company deemed to be fiscally transparent. For Moroccans living abroad, the concept of a main residence may be adapted to certain specific family circumstances; this is a point that should be checked carefully before any sale.

Declare and pay within 30 days of the disposal

The declaration of property profits must be submitted electronically within 30 days depending on the date of disposal, with the corresponding income tax to be paid online where it is due. The taxpayer may also apply, electronically, for a prior notice from the tax authorities regarding the basis for calculating taxable net profit, the corresponding tax or the right to exemption. This application must be submitted within 30 days of the signing of the preliminary sale agreement.

Special cases and restrictions to be aware of: MREs, companies, VAT

There are a number of situations that require further analysis, which are not covered in this general guide.

• For Moroccans living abroad, the concept of a main residence may be treated differently depending on certain family circumstances: this point must be checked carefully before any sale takes place.
• The treatment of VAT on a property purchase depends on the nature of the transaction and the status of the seller or developer; there is no single rate that applies across the board: a case-by-case assessment is required.
• The tax treatment of owning or letting property through a company (corporation tax, property investment company, tax transparency regime) is subject to its own set of rules, distinct from those outlined here for private individuals, and requires a separate analysis.
• The rules set out in international tax treaties for non-residents vary depending on the country of tax residence and must be checked on a case-by-case basis before any transaction takes place.

Practical advice and common pitfalls to avoid in Moroccan property taxation

• Check that the deed specifies the exact terms and payment details for the purchase price, to avoid the 2 % surcharge on property transfers exceeding 300,000 DH.
• Get a head start on your annual property income tax return before 1 March, rather than rushing to complete it the following year.
• Seek the authority’s prior approval before a sale, within 30 days of signing the preliminary agreement, to ensure the calculation of the capital gain is accurate.
• Always keep receipts for purchase costs and any work carried out: these will reduce the taxable profit in the event of a future resale.
• Do not confuse the five-year exemption from council tax with the municipal services charge, which is not covered by this exemption and remains payable from the first year, subject to the 75 % allowance for the main residence.

Focusing on a single tax rate provides only a partial picture: it is the combination of the four stages – purchase, ownership, letting and resale – that determines the actual tax burden on a property over the entire period of ownership. The thresholds and rates set out here reflect the General Tax Code 2026 and the 2026 Finance Act: it is still advisable to check directly with the tax authorities before making any binding decisions.

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