Guide to Property Taxes in Morocco
Tax Rate on Rental Income |
|||
| Monthly Income | US$1,500 | US$6,000 | US$12,000 |
| Tax Rate | 15.00% | 15.00% | 15.00% |
Non-resident individuals are generally subject to Moroccan income tax only on income derived from Moroccan sources, including income and taxable gains arising from real estate situated in Morocco. Married individuals are generally taxed separately.
Income Tax (Impôt Général sur le Revenu or IGR)
Taxable income includes the following:
- Business income
- Wages and salaries
- Agricultural income
- Income and profit from movable capital
Income tax is generally levied on aggregate income at progressive rates.
| Taxable Income, MAD | Tax Rate |
| Up to 40,000 | 0% |
| 40,000 - 60,000 | 10% |
| 60,000 - 80,000 | 20% |
| 80,000 - 100,000 | 30% |
| 100,000 - 180,000 | 34% |
| Over 180,000 | 37% |
| Source: Global Property Guide, PWC | |
Rental Income
Rental income derived from Moroccan real estate by an individual is subject to a special tax regime based on gross rental income.
The applicable rates are:
-
10% where annual gross rental income is below MAD 120,000; and
-
15% where annual gross rental income is equal to or exceeds MAD 120,000.
Because the tax is calculated on gross rental revenue under this regime, ordinary property expenses are not deducted when applying these rates.
From 1 July 2026, a new 5% non-final withholding tax can apply to certain real-estate rental payments made by specified entities. Where applicable, this withholding is creditable against the taxpayer's final income tax liability and is therefore not an additional 5% final tax.
Capital Gains Tax
Capital gains realized by individuals from the disposal of Moroccan real estate are generally subject to Property Profit Tax at a rate of 20% of the taxable capital gain.
The resulting tax generally cannot be lower than 3% of the property's selling price.
The taxable gain is broadly calculated as:
Sale price less selling expenses − adjusted acquisition cost and qualifying acquisition/investment expenses.
The acquisition cost may be adjusted using an official coefficient reflecting changes in the cost of living.
An exemption can apply where the property has been used as the taxpayer's principal residence for at least six years, subject to the applicable statutory conditions.
Corporate Tax
For 2026, Morocco has completed the phased corporate income tax reform introduced in 2023.
The ordinary corporate income tax rates are now 20-35%.
Capital Gains Tax (taxe sur les profits immobiliers or TPI)
Long-term capital gains earned by companies are generally taxed at a flat rate of 30%.
Buying and Selling Costs/Taxes
| Transaction Costs | Rate | Who Pays |
| Property Transfer Tax | 4.00% | buyer |
| Notary Fees | 1.50% - 2.50% | buyer |
| Legal Fees | 1.00% - 2.00% | buyer |
| Real Estate Agent Fee | 3.00% | buyer |
| Costs Paid by Buyer | 9.50% - 11.50% | |
| Costs Paid by Seller | 0% | |
| Total Roundtrip Cost | 9.50% - 11.50% | |
| Source: Global Property Guide, PWC, Deloitte | ||
Property Tax
Housing Tax (Taxe d’habitation)
Morocco levies an annual Housing Tax (Taxe d’habitation) on qualifying residential real estate. The tax is calculated by reference to the property's annual rental value, as determined by the tax authorities, rather than directly on its market value.
For a property occupied as the owner's principal or secondary residence, a 75% reduction in the assessed rental value generally applies. Consequently, only 25% of the assessed rental value is used as the taxable base.
The applicable progressive rates are:
| Tax Base, MAD | Tax Rate |
| Up to 5,000 | 0% |
| 5,000 - 20,000 | 10% |
| 20,000 - 40,000 | 20% |
| Over 40,000 | 30% |
| Source: Global Property Guide, PWC | |
Newly constructed buildings and additions to existing buildings generally benefit from a five-year exemption from Housing Tax following completion, subject to the applicable conditions.
