Morocco Property Tax Guide 2026

Overview — Property Taxation in Morocco

Property taxation in Morocco involves both national and local taxes. The main taxes are the registration duty (paid on acquisition), the annual taxes on built property (taxe d'édilité and taxe d'habitation), and capital gains tax on disposition. The system is administered by the DGI for national taxes and local municipalities for the taxe d'édilité and taxe d'habitation. Property values for tax purposes are based on the cadastral rental value (valeur locative), not market value.

Registration Duty (Droit d'Enregistrement) — 2% to 5%

Registration duty is payable by the buyer upon the transfer of real estate. The rates depend on the location and type of property:

• Urban property (standard): 5% of the higher of the purchase price and the cadastral value
• Rural property: 2.5%–5% depending on the region
• First-time home buyers (residence): Reduced rate of 2% for properties up to MAD 250,000 (subject to conditions)
• Property registered under Titre Foncier: Additional fee of 0.5% for the conservation foncière (land registry)

The duty is paid before the notary (adoul or notaire) can finalise the sale deed and register the transfer with the Conservation Foncière (land registry). The tax base cannot be lower than the cadastral value determined by the tax authorities.

Annual Taxe d'Édilité — 3% of Rental Value

The taxe d'édilité (also known as taxe des prestations communales or taxe de services communaux) is an annual local tax on built properties in urban areas. The rate is 3% of the cadastral rental value (valeur locative) of the property. This tax funds municipal services (street lighting, waste collection, roads). It is payable by the owner and is typically modest — for a typical apartment with a rental value of MAD 24,000 per year, the tax would be approximately MAD 720 annually.

Taxe d'Habitation (Residence Tax)

Occupants of residential properties (owners or tenants) are subject to the taxe d'habitation. The rate varies by municipality (typically 5%–12% of the cadastral rental value). Low-income households and properties below certain rental value thresholds may qualify for exemptions. The tax is paid annually and is typically collected by the local commune.

Capital Gains on Property — Taxed as Income

Capital gains from the sale of real estate are treated as taxable income under the IR (Impôt sur le Revenu) system. Key rules:

• Gains are calculated as the difference between the sale price and the acquisition cost (plus documented improvements and transfer costs)
• Taxed at the seller's marginal IR rate (0%–38%)
• A holding period reduction applies: 5% reduction in taxable gain for each year of ownership beyond 5 years (full exemption after 25 years)
• Primary residence exemption: Gains from the sale of the principal residence are fully exempt if the property has been held for more than 5 years
• Non-residents selling Moroccan property are also subject to tax on gains
• A 3% registration duty (retenue) is withheld at source by the notary on the gross sale price as an advance tax payment

Local Business Tax (CVAE — Cotisation sur la Valeur Ajoutée des Entreprises)

Businesses owning or occupying commercial property are subject to the CVAE, a local tax based on the cadastral rental value of the business premises. The rate is set by the local commune (typically 10%–30% of the rental value). The CVAE replaced the former taxe professionnelle and is deductible for corporate income tax purposes.

Rental Income Taxation

Rental income from property is taxable under IR at progressive rates (0%–38%). Landlords can deduct:

• Property management fees
• Maintenance and repair costs
• Property insurance premiums
• Interest on loans used to acquire the property
• Annual depreciation (2% for buildings)
• Taxe d'édilité and taxe d'habitation paid by the landlord

A notional 40% deduction (abattement forfaitaire) from gross rental income is available to cover all expenses, simplifying the calculation for most landlords.

FAQs

What is the total tax cost of buying a property in Morocco?

Buying a property typically involves 5%–7% in taxes and fees: registration duty (5%), conservation foncière (0.5%–1%), notary fees (1%–2%), and possibly VAT (20% on new properties). First-time buyers of affordable housing benefit from reduced rates.

Can foreigners buy property in Morocco?

Yes, foreigners can buy property in Morocco without restriction. There are no special taxes for foreign buyers. The same registration duties, annual taxes, and capital gains rules apply equally to residents and non-residents.

Is there an annual property tax based on market value?

No. Morocco does not have an annual property tax based on market value. The annual taxes (taxe d'édilité, taxe d'habitation) are based on cadastral rental value, which is typically far below market value.

Disclaimer

This guide provides general information about Moroccan property taxes 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.