Legal guide · taxation
The taxation of property investment in Marrakech
You don't need to know every rate by heart: you need the map. Which taxes exist, when they apply, who pays them and which exemptions are possible. Moroccan property taxation is governed by the General Tax Code and revised with each finance act — so rates change over time. This guide gives you a clear view to plan your Marrakech investment; the exact rates in force are confirmed by your notary or tax adviser.
Fees and taxes at purchase
When buying, several costs are added to the price: registration duties, the entry at the Land Registry (ANCFCC) that formalises your title, fiscal stamps and the notary's fees.
These amounts depend on the property and its nature. The good practice is simple: ask the notary for a precise breakdown before signing, so you buy with no bad surprises and factor these costs into your overall budget from the start.
Taxation of rental income
If you rent out your property, the rent received falls under income tax as property income. The scale is progressive and provides, in principle, an exemption threshold for small rental income.
The key is to declare your income correctly and to know the deductible expenses. It is a point we invite you to frame with a tax adviser, especially if you target rental yield or a short-term rental operation.
Resale: the tax on property profits (TPI)
At resale, the gain realised is subject to the Tax on Property Profits (TPI). A minimum levy applies, calculated on the sale price, even when the gain is small.
An exemption in principle exists for the main residence, subject to a minimum holding period. Anticipating the TPI from the purchase — by keeping the price and works receipts — protects your future gain and avoids bad surprises on the day of sale.
Annual taxes: housing and communal services
Each year, two local taxes may concern your property: the Housing Tax, with a rebate for the main residence, and the Communal Services Tax, which funds local services and varies by the property's location.
These are modest recurring charges, but ones to factor into your operating budget, especially for a rental investment held over the long term.
New-build, off-plan (VEFA) and VAT
For a new home, VAT is most often included in the price displayed by the developer. New-build also comes with its own guarantees and, often, an off-plan purchase (VEFA) that frames the payment schedule.
If you are targeting new-build, our dedicated VEFA guide details the buyer's protections; we help you align the tax aspect with the programme's timeline.
Expatriate Moroccans and non-residents: plan and trace
For a Moroccan living abroad, taxation is thought through together with currency. Funding in foreign currency via a convertible dirham account, paying by a traceable means and declaring the investment open the retransfer guarantee — hence the ability to repatriate rental income and resale proceeds.
This alignment between taxation, traceable payment and a secure land title is exactly what we frame with you, in French, English or Darija, before any commitment — and we point you to a tax adviser for the precise figures.
Planning the taxation of your investment, step by step
Step by step
- 1
Map the taxes to your project
Identify the taxes that concern you according to the intended use: home, long-term rental, short-term rental or resale in time.
- 2
Ask for the breakdown of purchase fees
Have the notary draw up the detail of acquisition costs (registration duties, land registry, stamps, fees) before signing.
- 3
Plan the rental-income return
If you rent out, prepare the declaration of your property income and identify the deductible expenses with a tax adviser.
- 4
Anticipate the TPI at resale
Keep every receipt for the purchase price and works: they reduce the taxable gain on the day of resale.
- 5
Have the rates in force confirmed
Rates change with each finance act: have them confirmed by your notary or tax adviser at the time of your operation.
Frequently asked questions about property taxation
- What fees do you pay when buying a property in Marrakech?
- Mainly registration duties, the land-registry entry fees, fiscal stamps and the notary's fees. The amounts depend on the property; ask the notary for a precise breakdown before signing.
- Is rental income taxed in Morocco?
- Yes, rent received falls under income tax as property income, on a progressive scale that provides, in principle, an exemption threshold for small income. Declare it and frame the deductible expenses with a tax adviser.
- What is the tax on property profits (TPI)?
- It is the tax on the gain realised on the resale of a property, with a minimum levy calculated on the sale price. The main residence may be exempt subject to a minimum holding period.
- How can you legally reduce the taxable gain at resale?
- By keeping every receipt: the declared purchase price, acquisition costs and works invoices are, under the rules in force, deducted from the taxable profit. Hence the value of declaring the real price and paying traceably from the purchase.
- What annual taxes does an owner pay?
- The Housing Tax (with a rebate for the main residence) and the Communal Services Tax, which varies by location. These are recurring charges to factor into your budget.
- Do tax rates change?
- Yes. Property taxation is governed by the General Tax Code and revised with each finance act: rates and thresholds change. Your notary or tax adviser confirms the figures in force at the time of your transaction.