Morocco: Taxes and Costs

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Morroccan income tax rates rise progressively to 26.4%

Income Tax

Net rental income is taxable under the general income tax (Impôt Général sur le Revenu or IGR). A standard deduction of 40% of the gross rental income covers the income-generating expenses in lieu of itemized deductions. Net rental income, which is 60% of the gross income, is taxed at the following progressive rates:

Property Tax

Property tax is assessed on the rental value of the property. The general property tax rate is 10% of the assessed rental value, as determined by the local tax authorities.

If the property is used as a primal residence, only 25% of the assessed rental property value is subject to tax.

New buildings are exempted from the tax for a 5-year period following completion.

Capital Gains Tax

Individuals earning capital gains from selling property are subject to tax on property profits (taxe sur les profits immobiliers or TPI). Profits on the sale of property are taxable at 20% of any profit, but with a minimum tax of 3% of the sale price. The taxable gain is computed by deducting the following from the selling price: acquisition price and incidental costs, transfer costs, investment expenses, and interest payments.

Capital gains from the sale of a property which has been the primary residence of the taxpayer are not subject to under some qualifications:

• The property has been the seller’s primary residence for at least five years if the selling price is less than MAD1 million (US$110,790)
• The property has been the seller’s primary residence for at least eight years if the selling price is more than MAD1 million (US$110,790)

Gifts between parents and children, and brothers and sisters, are tax-free.

Morocco - more data and information

• Guide to buying houses and registering property sales in Morocco

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