Morocco Capital Gains Tax Guide 2026

Overview — Capital Gains Taxation in Morocco

Morocco integrates capital gains into the ordinary income tax system (IR for individuals, IS for companies). There is no separate capital gains tax schedule. Gains from the sale of assets — whether shares, real estate, or business assets — are added to the taxpayer's other income and taxed at their marginal rate (0%–38% for individuals, 20% for most companies). Certain exemptions and reductions apply based on asset type, holding period, and the status of the seller.

Capital Gains on Securities — Taxed as Income

Gains from the sale of shares, bonds, and other securities are taxable as ordinary income. Key rules for individual investors:

• Gain is calculated as the difference between the sale price and the acquisition cost (plus transaction costs)
• Taxed at the individual's marginal IR rate (0%–38%)
• Capital losses can be offset against capital gains in the same year, but not against other income types
• Unused losses can be carried forward for 4 years (offset limited to 50% of gains each year)
• Gains from listed shares held for more than 3 years may qualify for a reduced inclusion rate

For companies, capital gains on securities are included in ordinary business income and taxed at the applicable IS rate.

Exemptions for Listed Shares

Morocco offers generous exemptions for gains on listed shares:

• Listed shares held long-term: Gains from the sale of shares listed on the Casablanca Stock Exchange (CSE) may be fully exempt if the shares have been held for more than 3 years and the seller is an individual
• IPO shares: Gains from the sale of shares acquired during an IPO are exempt from IR for the first 3 years (subject to conditions)
• Block trades: Certain large block transactions may qualify for exemption or reduced rates

These exemptions are designed to encourage long-term equity investment in the Casablanca Stock Exchange.

Capital Gains on Real Estate

Gains from the sale of real estate are subject to IR. Key features:

• Taxable gain = sale price minus acquisition cost (adjusted for inflation using DGI indices) minus improvement costs and transfer expenses
• Holding period reduction: 5% of the gain is exempt for each year of ownership beyond 5 years (full exemption after 25 years)
• Primary residence exemption: Fully exempt if held for more than 5 years; partial exemption if held for less
• A 3% withholding tax (retenue) is applied on the gross sale price by the notary as an advance IR payment
• Non-residents: A 3% withholding also applies, which may be the final tax for non-residents under certain conditions

Cryptocurrency Gains

Morocco has not yet issued specific tax guidance for cryptocurrency gains. However, as a general principle, capital gains from crypto trading would be treated as income and taxed under IR. Cryptocurrency is not recognised as legal tender in Morocco (Bank Al-Maghrib has issued warnings), and crypto trading platforms are not licensed. The DGI may treat crypto gains as taxable income from a source subject to IR. Taxpayers should seek specific advice.

Gains from Business Assets

Capital gains on the sale of business assets (machinery, equipment, goodwill, business premises) are included in the company's ordinary income and taxed at the applicable IS rate (20% for most, or the reduced rates). Gains from the sale of a business as a going concern (fonds de commerce) are subject to specific rules, including a registration duty of 5% on the value of the business.

FAQs

Is there a difference between short-term and long-term capital gains?

For securities, there is no formal short-term vs long-term distinction, but listed shares held over 3 years may qualify for exemption. For real estate, the holding period reduction (5% per year after 5 years) effectively creates a long-term benefit.

Can I offset capital losses against my salary income?

No. Capital losses can only be offset against capital gains. If you have no capital gains in a given year, losses can be carried forward for up to 4 years and offset against future gains (limited to 50% per year).

Do non-residents pay capital gains tax on Moroccan shares?

Non-residents selling shares in Moroccan companies are generally subject to IR on the gain at the standard rates. Tax treaties may provide relief. The 3% withholding on real estate sales does not apply to share sales.

Disclaimer

This guide provides general information about Moroccan capital gains tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Moroccan tax advisor (conseil fiscal) or the DGI directly for advice specific to your situation. InvestmentKit does not provide tax advice.