When reselling a property in Morocco, sellers are subject to Personal Income Tax on Real Estate Profits, commonly known as **Capital Gains Tax (TPF)**. This tax is levied on the net profit realized between the initial purchase and the subsequent resale.
1. Tax Rates and Computation Formula
The standard TPF rate is **20% on the net capital gain**, subject to a minimum statutory tax floor of **3% of the total gross sale price**, even if no profit was realized.
- Net Profit Formula: Resale Price - (Adjusted Initial Purchase Price + Acquisition Costs + Invoice-proven Renovation Expenses).
- Adjustment Index: Initial purchase prices are adjusted using official annual revaluation coefficients published by the Tax Authority (DGI).
2. Full Capital Gains Tax Exemptions
Moroccan tax legislation grants full TPF exemptions under specific statutory conditions:
- Primary Residence Exemption: The property served as your primary residence for at least **5 consecutive years** prior to sale.
- Low-Value Sales Exemption: Total sale proceeds do not exceed **140,000 MAD**.
- Intra-Family Transfers: Gratuitous transfers (donations) between parents, children, spouses, and siblings.
3. Requesting a Tax Authority Prior Opinion
To prevent post-closing tax reassessments, sellers can file for an **Advance Tax Ruling (Avis Préalable)** with the Tax Authority via their notary before executing the sale deed. The authority confirms exact tax liabilities within 60 days.
For closing cost calculations, review our notary and property tax guide for Morocco.
4. Reselling Properties Acquired with Daam Sakane
Important: Buyers who received the Daam Sakane 2026 subsidy must maintain the property as their primary residence for 5 years before reselling without reimbursing state grant funds.
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