Capital gains and rental income tax in Morocco: what owners pay in 2026

Capital gains on Moroccan property are taxed at 20% of the net gain, with a minimum of 3% of the sale price even when there is no gain. Unfurnished rental income is taxed after a flat 40% allowance at the progressive income-tax scale, for non-residents as well as residents. This guide follows the 2026 tax code (CGI 2026), not the older rules that many English-language summaries still repeat.

Updated 5 October 2026

Key facts

Unfurnished rent is taxed after a flat 40% allowance at the 0-37% progressive income-tax scale, for non-residents as well as residents (CGI 2026, Arts. 23, 64 and 73).
Company and business-regime tenants withhold 10% or 15% of gross rent as a prepayment; since 2025, landlords can opt for a final 20% on that rent instead (DGI).
The 5% rent withholding in force from 1 July 2026 applies only to rent paid to companies and business-regime landlords (Finance Law 50-25).
Capital gains on property are taxed at 20%, with a minimum of 3% of the sale price even without a gain (CGI 2026, Arts. 73 and 144).
A main home occupied for at least 5 years, not 6 as PwC still states, is exempt, but 3% is due on any part of the price above MAD 4 million (CGI 2026, Arts. 63 and 144).
From 1 July 2026, sales above MAD 300,000 pay an extra 2% registration duty on any part of the price paid in cash (CGI 2026, Art. 133-III).
Morocco has no inheritance tax; gifts between ascendants and descendants (such as parents and children), spouses or siblings pay 1.5% registration duty and no capital gains tax (CGI 2026).

How is rental income taxed in Morocco?

Unfurnished rent is taxed after a flat 40% allowance at the progressive scale, and non-residents pay on Moroccan-source income, rent included (Arts. 23, 64 and 73). The 2026 scale on net income:

Up to MAD 40,000: 0%
MAD 40,001-60,000: 10%
MAD 60,001-80,000: 20%
MAD 80,001-100,000: 30%
MAD 100,001-180,000: 34%
Above MAD 180,000: 37%

Tenants that are companies or business-regime individuals withhold 10% of gross rent (15% from MAD 120,000 a year; nothing up to MAD 40,000). That is a prepayment credited against your annual tax, not the tax itself, although PwC still presents it as a flat tax on gross rent.

Since 2025, landlords whose rent is withheld can opt for a final 20% on gross rent instead. It only pays when the rent would otherwise fall in the 34% or 37% bands, where the scale takes 20.4% or 22.2% of each extra dirham; on rent alone, that means above roughly MAD 1.25 million a year (our calculation).

The 5% withholding from 1 July 2026 covers rent paid to companies and business-regime landlords only. Individual landlords file online before 1 March each year. Lending the home free to anyone other than your ascendants or descendants (parents, children, grandparents, grandchildren) is taxed on its rental value.

Furnished and holiday lets are taxed differently

Rent counts as revenus fonciers only when it is not professional income (Art. 61-I). The tax administration treats furnished lettings as professional income without the 40% allowance, according to Upsilon Consulting (May 2026), and most holiday lets are furnished.

The code also charges VAT on accommodation, at 10%, and on other furnished rentals, at 20% (Arts. 89 and 99); whether that reaches an individual host is a question for an adviser. See our guide to short-term rental rules.

How much is capital gains tax on property in Morocco?

The seller pays 20% of the net gain, with a minimum of 3% of the sale price even without a gain (Arts. 73 and 144). The gain is calculated as follows (Art. 65):

Take the sale price, less documented selling costs.
Deduct the purchase price, acquisition costs (deemed 15% of the price unless you prove more), improvement works and loan interest or Islamic-finance margin.
Index that cost base by the tax authority's revaluation coefficient for the purchase year.
For inherited property, the cost is the market value at the date of death.

The 20% rate only exceeds the minimum when the gain is above 15% of the sale price. With prices up 0.6% in 2025 (Bank Al-Maghrib/ANCFCC), budget for the 3% unless your gain is large.

The seller files and pays online within 30 days of the sale (Art. 83). The registration inspector holds the deed until local taxes are paid up (Art. 138). Proceeds of a purchase funded in foreign currency can then be sent home.

From 1 July 2026, sales above MAD 300,000 pay a supplementary 2% registration duty on any part of the price paid in cash, or on the whole price if the deed records no traceable payment (Art. 133-III). See buying costs.

Which property sales are exempt from capital gains tax?

The exemptions that matter to private owners, and their limits (Arts. 63 and 144):

Main home: exempt after at least 5 years as your main residence, once per 5-year period, with up to a year to sell once it falls vacant. A home that has been let does not qualify.
Above MAD 4 million: even an exempt main home pays 3% on the part of the price above MAD 4 million.
MREs: the home kept in Morocco, or lent free to a spouse, parents or children, counts as the main residence (buying as an MRE).
Small sales: exempt when your total property sales in a calendar year are MAD 140,000 or less.
Gifts between ascendants and descendants (such as parents and children), spouses or siblings.

A holiday home is unlikely to count as a main residence, so most foreign owners should budget for 20% or the 3% minimum.

Worked examples (illustrative)

Letting an unfurnished flat

Assumptions: non-resident owner, private tenant, no other Moroccan income, 2026 scale.

Rent of MAD 8,000 a month (MAD 96,000 a year, about EUR 8,900): taxable MAD 57,600; tax MAD 1,760, or 1.8% of the rent. The outdated flat 10% would give MAD 9,600.
Rent of MAD 20,000 a month (MAD 240,000 a year): taxable MAD 144,000; tax MAD 26,960, or 11.2% of the rent.

Selling a holiday flat

Assumptions: bought in 2016 for MAD 2,000,000 with no receipts kept, never a main home, sold in 2026 for MAD 2,600,000 (about EUR 240,000) with MAD 60,000 of selling costs. The net price of MAD 2,540,000, less a cost of MAD 2,300,000 (price plus the deemed 15%), leaves a gain of MAD 240,000 before indexation; 20% of that is MAD 48,000. The 3% minimum, MAD 78,000 (about EUR 7,200), is higher, so that is the bill on a 30% price rise.

Annual local taxes: taxe d'habitation and taxe de services communaux

Two local taxes are charged yearly on a rental value set by a municipal commission and revised by 2% every 5 years (DGI):

Taxe d'habitation (TH), on main and second homes: 0% on the first MAD 5,000 of rental value, then 10% up to MAD 20,000, 20% up to MAD 40,000 and 30% above. New homes used as a main residence are exempt for 5 years.
Taxe de services communaux (TSC), on all buildings: 10.5% in urban communes and resorts, 6.5% in peripheral zones, with no new-build exemption.
A main residence, including an MRE's home in Morocco, gets a 75% reduction in rental value for both taxes.

Illustration: on an assumed rental value of MAD 30,000 for a second home in a city, TH is MAD 3,500 and TSC MAD 3,150 a year. Declare a change of ownership by 31 January of the following year.

Inheritance, gifts and double tax treaties

Morocco has no inheritance tax: transfers on death are not among the deeds subject to registration duty (Art. 127). Heirs pay land-registry fees: MAD 100 per property to register the heirs, MAD 500 per property to divide the estate within 2 years of death, then 1.5% plus MAD 100 (ANCFCC).

Tax treaties leave Morocco the right to tax Moroccan property:

France (1970): rental income is taxable only in Morocco (Art. 9), though France may use it to set the rate on other income (Art. 25); gains may be taxed in Morocco (Art. 24).
United Kingdom (1981, in force 1990): rent and gains may be taxed in Morocco (Arts. 6 and 13), and the UK credits the Moroccan tax (Art. 22).
Netherlands (1977): rent and gains may be taxed in Morocco (Arts. 6 and 14).
Belgium and Spain also have treaties with Morocco (PwC); we have not reviewed their texts.

This is general information, not tax advice: confirm your position with a notaire or a tax adviser who knows both countries.

Sources

Frequently asked questions

Do non-residents pay tax on rental income in Morocco?

Yes. Non-residents are taxed in Morocco on Moroccan-source income, which includes rent from Moroccan property. Unfurnished rent is taxed after a flat 40% allowance at the progressive scale, where the first MAD 40,000 of net income is taxed at 0%. The annual return is due online before 1 March. Your home country may tax the rent too, usually with treaty relief.

Is the main residence exemption in Morocco 5 or 6 years?

Five years. Under Article 63 of the 2026 tax code, a home that has been your main residence for at least 5 years, and has not been let, can be sold free of capital gains tax, once per 5-year period. The 6-year figure on PwC and some portals is an old rule. A 3% minimum still applies above MAD 4 million.

Do I pay tax if I sell my Moroccan property at a loss?

Usually yes. Morocco charges a minimum of 3% of the sale price even when there is no gain, so a loss-making sale for MAD 2 million still owes MAD 60,000. The main exceptions are a qualifying main home sold for MAD 4 million or less, and total property sales of MAD 140,000 or less in a calendar year.

Who pays capital gains tax on a property sale in Morocco, and when?

The seller, who files online and pays within 30 days of the sale. Before that, the seller can request an advance ruling within 30 days of signing the compromis, and the tax authority replies within 60 days. The registration inspector also holds the deed until local taxes on the property are paid up.

Is there inheritance tax in Morocco?

No. Morocco charges no inheritance tax on property passing on death. Heirs pay land-registry fees, from MAD 100 per property to record their names, and capital gains tax applies if they later sell, calculated from the value at death. Heirs resident in a country with its own inheritance tax, such as France, may still owe it there.

Will I be taxed twice on income from Moroccan property?

Usually not. Morocco's treaties with France, the UK and the Netherlands let Morocco tax rent and gains from Moroccan property. Under the French treaty, rent is taxable only in Morocco, though France can use it to set your rate on other income. The UK taxes it too but credits the Moroccan tax. Check your own country's treaty.

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