Real Estate Capital Gains Tax in Morocco (IR/PF): Complete Guide 2026 - Agenz

What is the IR/PF? (formerly TPI)

Since the 2023 Finance Act, the Real Estate Profit Tax (TPI) has been renamed the Income Tax on Property Profits (IR/PF). It applies to any individual who makes a profit when selling real estate in Morocco, regardless of the type of property: apartment, villa, land, etc. Beyond the terminology change, the rules for taxation and oversight have also been updated.

How is the IR/PF calculated?

The IR/PF is calculated on the profit made from the sale:

Taxable profit = Sale price − Updated acquisition price − Acquisition costs and investment expenses

The acquisition price is updated using annual coefficients published by the Ministry of Economy and Finance, taking inflation into account.

Calculation example

Sale price = 1,000,000 MAD

Purchase price (2010) = 700,000 MAD

2010 adjustment coefficient = 1.202

Acquisition costs and investments = 70,000 MAD

Updated acquisition price = 700,000 × 1.202 = 841,400 MAD

Taxable base = 1,000,000 − 841,400 − 70,000 = 88,600 MAD

If the tax authorities do not have sufficient information, the taxable base is set at the sale price minus 20%.

What is the IR/PF tax rate?

Property profits are subject to a flat rate of 20%. A minimum contribution of 3% of the sale price also applies. If this amount exceeds the calculated IR/PF, the minimum contribution takes precedence.

Using the example above:

• IR/PF = 88,600 × 20% = 17,720 MAD
• Minimum contribution = 1,000,000 × 3% = 30,000 MAD
• Amount due: 30,000 MAD (minimum contribution applies as it is higher)

Property Tax Clearance Certificate: mandatory since July 2024

Since July 2024, notaries are prohibited from drafting a deed of sale without first obtaining the property tax clearance certificate (quitus fiscal). This certificate confirms that the seller is up to date with all local taxes, including:

• Habitation tax (TH)
• Municipal services tax (TSC)
• Undeveloped land tax (TNB)

Any outstanding tax situation must be resolved before starting the sale process. Without this certificate, the transaction will be blocked at the notary's office.

Undeveloped Land Tax (TNB)

If your property includes a large plot or consists of undeveloped land, the TNB applies directly. Rates have been revised upward based on the level of infrastructure in the area, reaching up to 22.5 MAD/m² in well-equipped zones. These amounts directly affect the costs the seller must settle before the sale in order to obtain the tax clearance certificate.

Payment traceability: the 300,000 MAD rule (Finance Act 2026)

Since the 2026 Finance Act, any real estate transaction exceeding 300,000 MAD must be settled exclusively through banking channels (bank transfer or certified cheque). Failure to comply results in:

• A 2% surcharge on registration fees
• The notary may block the transaction if payment documentation is not compliant

Prior opinion request: highly recommended

Introduced by the 2023 Finance Act, the prior opinion request allows you to ask the tax authorities to calculate your net taxable property profit before the sale. This request must be submitted within 30 days of signing the preliminary sale agreement. You will receive a tax assessment certificate specifying the taxable base and the amount due — and you will be protected from any future tax audit.

Without this step, you must provisionally pay the difference between the declared amount and 5% of the sale price (refundable after the correction procedure).

IR/PF exemptions

Your sale may be fully exempt from IR/PF in the following cases:

• Primary residence continuously occupied for at least 6 years at the time of sale.
• Social housing (art. 92-I-28° of the CGI) used as a primary residence for at least 4 years.
• Properties with a total value not exceeding 140,000 MAD.
• Gratuitous transfers between ascendants/descendants, spouses, or siblings, or under a Kafala arrangement.
• Contributions to the assets of a company or an OPCI (real estate investment fund).
• Transfers made at their original acquisition price (new since Finance Act 2025).

Checklist before selling your property

• Estimate your IR/PF or minimum contribution (3% of sale price).
• Settle all local taxes and obtain your tax clearance certificate (mandatory since July 2024).
• Check whether you qualify for an exemption (primary residence ≥ 6 years, value < 140,000 MAD, etc.).
• Submit a prior opinion request within 30 days of signing the preliminary agreement.
• For any transaction > 300,000 MAD, arrange payment exclusively through banking channels.

This guide is provided for informational purposes and summarises the tax provisions in force through 2026. For your specific situation, consult a tax advisor or a notary registered in Morocco.