Capital Gains Tax Exemption in Morocco
Certain real estate sales may qualify for a full exemption from the capital gains tax (CGT) if strict legal conditions are met. The main cases concern primary residences, family transfers, and social housing. These exemptions allow sellers to avoid CGT under specific conditions.
What is a capital gains exemption?
An exemption means that the sale of a property will not be subject to CGT even if it generates a gain. It is regulated by the General Tax Code and the Finance Law in Morocco, and remains applicable in 2026.
Situations eligible for exemption
Primary Residence
The property must be the seller's primary residence and occupied for at least 6 years before the sale. If these conditions are met, CGT may be fully exempted.
Family Transfer
Sales between close family members (parents, children, spouses) may benefit from a CGT exemption, provided all legal documents are supplied.
Social Housing
Properties classified as social housing, occupied by the owner for at least 4 years, may benefit from legal CGT exemption.
Other Cases
Some expropriations for public utility or specific situations defined by decree may also be exempted.
How to prove eligibility for exemption?
To benefit from the exemption, the seller must provide valid documents:
- Official residence certificate
- Utility bills (water, electricity, phone) proving occupancy
- Local administrative certificates
- Marriage contracts or inheritance deeds depending on the case
Summary Table of Exemptions
| Exemption Case | Key Conditions | Practical Example |
|---|---|---|
| Primary Residence | Occupied ≥ 6 years | Full CGT exemption |
| Social Housing | Occupied ≥ 4 years | Exemption if property complies |
| Family Transfer | Sale to close relatives | CGT often nil or reduced |
| Expropriation | Public utility | Exemption according to decree |
Practical Examples
Example 1: Sale of Primary Residence
Owner lived in the apartment as primary residence for 6 years → Full CGT exemption.
Example 2: Sale of Social Housing
Social housing occupied for 5 years → Exemption possible under legal conditions.
Example 3: Sale to a Parent
Transfer between parent and child → Exemption under required documentation.
Interactive Calculations – CGT and Exemption
| Property | Purchase Price | Costs & Renovations | Sale Price | Net Gain | CGT Exemption | CGT Payable |
|---|---|---|---|---|---|---|
| Primary Residence 6 yrs | 800,000 MAD | 50,000 MAD | 1,200,000 MAD | 350,000 MAD | Yes (primary residence) | 0 MAD |
| Social Housing 5 yrs | 500,000 MAD | 20,000 MAD | 750,000 MAD | 230,000 MAD | Yes | 0 MAD |
| House sold to child | 1,000,000 MAD | 50,000 MAD | 1,400,000 MAD | 350,000 MAD | Yes (family transfer) | 0 MAD |
| Non-primary land, standard sale | 600,000 MAD | 0 MAD | 900,000 MAD | 300,000 MAD | No | 60,000 MAD (20%) |
FAQ – Capital Gains Exemption
How long must the property be occupied to qualify for exemption?
Generally ≥ 6 years for a primary residence to benefit from full CGT exemption.
Can Moroccans living abroad qualify for exemption?
Yes, if they meet occupancy conditions and provide the required documents.
Does renting the property prevent exemption?
Yes, renting usually interrupts the primary residence status required for exemption.
Is the exemption applied automatically?
No, it must be requested and supported with official documents submitted to the tax administration.