Selling a riad as a Marrakech property is often the culmination of a wonderful journey. It is also a tax matter that requires preparation. In Morocco, capital gains on property are taxed as part of income tax, under the category of \u00abproperty profits\u00bb. Many owners still refer to \u00abTPI\u00bb, the tax on property profits that preceded it.<\/p>\n
In this guide, we set out the rules as they appear in the General Tax Code (CGI) 2026: the rate, the minimum tax, the method of calculation, exemptions and the filing schedule. We have also included our practical observations from the sales we have supported.<\/p>\n
In short<\/strong> : net capital gains are taxed at 20 %<\/strong> (Article 73 of the General Tax Code), with a minimum contribution of 3 % of the sale price<\/strong>, which is payable even in the absence of a profit (section 144). The main residence occupied for at least 5 years<\/strong> may be exempt, subject to certain conditions. The declaration and payment are made within the 30 days<\/strong> following the sale.<\/p>\n Capital gains tax applies, in particular, to gains realised on the sale of a property situated in Morocco or of rights in rem relating to immovable property. It applies to individuals, whether resident or non-resident, regardless of their nationality. Companies, on the other hand, are subject to corporation tax.<\/p>\n For a foreign buyer, this is something to bear in mind right from the start of the purchase: the way in which you document your purchase and any renovation work carried out now will determine the tax you\u2019ll pay when you sell the property. For an overview of the tax implications for property owners, see our Guide to property taxation in Morocco<\/a>.<\/p>\n Net property profit is subject to a rate of 20 %<\/strong> (Article 73-II-F-6 of the General Tax Code).<\/p>\n Article 144-II of the General Tax Code imposes a minimum tax liability which may not be less than 3 % of the sale price<\/strong>, even if there is no profit. In practical terms, you pay the higher of the two amounts:<\/p>\n This is the point that surprises our clients the most: a riad sold at its purchase price, or even at a loss, is still subject to this minimum, unless an exemption applies.<\/p>\n Section 65 of the General Tax Code sets out the method. Net profit is the difference between:<\/p>\n Acquisition costs (registration fees, land registry fees, legal fees, estate agent\u2019s commission) are estimated on a flat-rate basis at 15 % of the purchase price<\/strong>, unless you can provide evidence of a higher amount. For the record, the details of these purchase costs are explained in our guide to Costs associated with buying property in Morocco<\/a>.<\/p>\n The CGI applies to expenditure on construction, reconstruction, extension, renovation and improvement, duly substantiated<\/strong>. For a renovated riad, this is often the decisive factor. Keep hold of invoices, building contracts and planning permission documents: without supporting documents, you won\u2019t be able to claim the deduction.<\/p>\n The purchase price, adjusted as described above, is multiplied by a coefficient corresponding to the year of purchase. These coefficients are set by the tax authorities: ask your solicitor or the DGI which one applies to the year of your purchase.<\/p>\n Let\u2019s take a riad purchased for 3,000,000 DH, with 900,000 DH in documented renovation costs, and resold for 5,000,000 DH with 100,000 DH in documented disposal costs. To keep things simple, the calculation below does not apply the revaluation coefficient: this increases the acquisition cost and therefore can only reduce the profit.<\/p>\n This case illustrates the importance of the minimum of 3 %: when the capital gain is small, this is the figure that applies.<\/p>\n Section 63 of the General Tax Code provides for several exemptions. The three main exemptions for a riad owner are as follows.<\/p>\n Any profit realised on the sale of a property intended as the owner\u2019s principal residence is exempt for at least five years<\/strong> on the date of the sale. The property must not have been let or used for business purposes. This applies to:<\/p>\n The exemption may only be claimed once during this five-year period, and a maximum of one year following the vacating of the property is allowed for the sale. The land is exempt up to a limit of five times the covered area.<\/p>\n Please note the threshold of 4,000,000 DH<\/strong> : where the sale price exceeds this amount, a minimum tax of 3 % remains payable on the portion of the price exceeding 4,000,000 DH (Article 144-II-2\u00b0).<\/p>\n A profit realised by a person whose disposals of immovable property during the calendar year do not exceed 140,000 DH<\/strong> in total.<\/p>\n Gifts between ascendants and descendants, between spouses, and between brothers and sisters are exempt from capital gains tax (Article 63-III).<\/p>\n A riad operated as a guesthouse or let on a short-term basis is not eligible for the \u00abprincipal residence\u00bb exemption, as the General Tax Code excludes properties that are let or used for business purposes. Nor is a second home.<\/p>\n Article 83 of the General Tax Code requires the filing of a statement<\/strong> with the tax authorities within 30 days<\/strong> following the sale, together with the payment of tax. It must be accompanied by supporting documents for the purchase costs and capital expenditure. In practice, the solicitor usually prepares this declaration and deducts the necessary funds from the sale price.<\/p>\n To see how this stage fits into the overall sales process, see our A guide to the stages of selling property in Morocco<\/a>.<\/p>\n The Franco-Moroccan tax treaty of 29 May 1970 provides that gains arising from the disposal of immovable property are taxable in the State where such property is situated (Article 24). For a riad at Marrakech, Moroccan tax therefore applies.<\/p>\n French tax legislation (BOFiP) states that, in the case of immovable property, the right to tax capital gains lies with the State in which the property is situated. The manner in which capital gains must, where applicable, be declared in France or taken into account when calculating the tax rate should be confirmed with a tax adviser. Our article on the The France\u2013Morocco tax treaty and property<\/a> sets out these rules.<\/p>\n If your purchase was financed in foreign currency and properly documented, foreign exchange regulations permit the transfer of the proceeds from the sale. For a property financed by a loan in dirhams, the Foreign Exchange Office authorises the transfer of the net proceeds up to the amount of the initial deposit in foreign currency, any repayments made in foreign currency and any capital gain. This is why it is important to keep all bank statements from the time of purchase.<\/p>\n Net capital gains are taxed at 20 %. A minimum levy of 3 % of the sale price applies if this amount is higher, even if no profit is made.<\/p>\n It does not apply where the sale is exempt: a main residence for at least 5 years (with 3 % on the portion of the price exceeding 4,000,000 DH), annual disposals not exceeding 140,000 DH, and gifts between family members.<\/p>\n The CGI 2026 (Article 63-II-B) stipulates that the property must have been the owner\u2019s main residence for at least five years on the date of sale, without having been let or used for business purposes.<\/p>\n Yes, provided they are duly justified: renovation and improvement costs are added to the purchase price before revaluation.<\/p>\n Within 30 days of the sale, at the same time as the tax is paid. The solicitor usually takes care of this.<\/p>\n Moroccan tax applies to property situated in Morocco (tax treaty, Article 24). The tax treatment in France should be checked with a tax adviser.<\/p>\n Are you thinking of selling your riad, or do you want to plan ahead right from the moment of purchase? We can help you gather the necessary supporting documents, value your property at market price and prepare for the sale with a solicitor. Contact us<\/a> or find out more about our support services to sell a riad with 1 bedroom and 1 bathroom<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Vendre un riad \u00e0 Marrakech, c’est souvent l’aboutissement d’une belle aventure. C’est aussi un moment fiscal \u00e0 pr\u00e9parer. Au Maroc, la plus-value immobili\u00e8re est tax\u00e9e au titre de l’imp\u00f4t sur le revenu, dans la cat\u00e9gorie des \u00ab\u00a0profits fonciers\u00a0\u00bb. Beaucoup de propri\u00e9taires parlent encore de \u00ab\u00a0TPI\u00a0\u00bb, la taxe sur les profits immobiliers qui l’a pr\u00e9c\u00e9d\u00e9e. Dans […]<\/p>\n","protected":false},"author":6,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-5833","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/klairarno.com\/en\/wp-json\/wp\/v2\/pages\/5833","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/klairarno.com\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/klairarno.com\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/klairarno.com\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/klairarno.com\/en\/wp-json\/wp\/v2\/comments?post=5833"}],"version-history":[{"count":1,"href":"https:\/\/klairarno.com\/en\/wp-json\/wp\/v2\/pages\/5833\/revisions"}],"predecessor-version":[{"id":5834,"href":"https:\/\/klairarno.com\/en\/wp-json\/wp\/v2\/pages\/5833\/revisions\/5834"}],"wp:attachment":[{"href":"https:\/\/klairarno.com\/en\/wp-json\/wp\/v2\/media?parent=5833"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}TPI in Morocco: what are we talking about?<\/h2>\n
The rate of capital gains on property in Morocco<\/h2>\n
20 % of net profit<\/h3>\n
A minimum contribution of 3 % of the price<\/h3>\n
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How to calculate taxable capital gains<\/h2>\n
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Acquisition costs: a flat-rate fee of 15 % or actual costs<\/h3>\n
Capital expenditure: your building works count<\/h3>\n
The revaluation coefficient<\/h3>\n
Illustrative example<\/h3>\n
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Capital gains tax exemptions in Morocco<\/h2>\n
The main residence, which has been occupied for at least 5 years<\/h3>\n
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Small sales<\/h3>\n
Gifts of family assets<\/h3>\n
What is not exempt<\/h3>\n
Filing and payment: the timetable<\/h2>\n
French sellers or non-residents: what you need to know<\/h2>\n
Tax is payable in Morocco<\/h3>\n
And what about France?<\/h3>\n
The repatriation of the sale price<\/h3>\n
Frequently Asked Questions<\/h2>\n
What will the capital gains tax rate on property be in Morocco in 2026?<\/h3>\n
How can I avoid the minimum contribution of 3 %?<\/h3>\n
Does it take 5 or 6 years to qualify for the main residence exemption?<\/h3>\n
Do renovation works on a riad reduce your tax bill?<\/h3>\n
How long do you have to declare the capital gain?<\/h3>\n
Does a French national pay capital gains tax in Morocco or in France?<\/h3>\n
Prepare for your property sale with Klair & Arno<\/h2>\n