Real Estate Agency in Marrakech

Housing Tax (TH) and Municipal Services Tax (TSC) in Morocco: The Complete 2025 Guide Local taxation is not just paperwork: it directly affects how safely you own, rent out, sell, or pass on your property. Since June 2025, a major reform has changed the landscape: the Moroccan Tax Administration (DGI) now manages Housing Tax (TH) and Municipal Services Tax (TSC) instead of the local authorities and the Treasury (TGR). Good news: the way taxes are calculated and the main exemptions remain the same. This guide “translates” tax jargon into practical advice so you can understand the calculation, pay less legally, and avoid penalties or blocked sales. 1. 2025 Reform: Why Does the DGI Now Manage TH and TSC? What changes for you Before 2025, you often had to deal with: The commune (local authority), The Treasury (TGR), And sometimes the DGI. With the 2025 reform (law n°14‑25 amending law 47‑06 on local taxation): You now have one main contact: the DGI for TH and TSC (assessment, tax bills, recovery, claims). Procedures are being centralised and digitised: online accounts, electronic tax bills, online payment. The TGR still appears for certain payment channels and for the tax clearance certificate needed at the notary, but in coordination with the DGI. In practice: for any question on Housing Tax or TSC, your reflex should now be “ask the DGI / check the DGI portal”. Purpose of law n°14‑25 Modernisation and digitalisation of local tax collection. Better recovery of local taxes to finance communes and regions. Unified management of real estate–related taxes: professional tax, housing tax, TSC, rental income, capital gains, etc. 2. Who Is Liable for TH and TSC in Morocco? Taxable properties You are within the scope of TH and TSC if you own: Constructed buildings (houses, apartments, villas, mixed‑use property), Any type of construction (extensions, annexes), Dependencies: gardens, pools, garages or parking spaces attached to the main building. Who is the taxpayer? The tax is established in the name of: The owner or usufruct holder first, Failing that, the possessor or occupant. Legally, the owner remains the main person liable, even if the property is rented out. Professional equipment The TSC also applies, for professional premises, to: Equipment, tools and production means that are already subject to professional tax. For a workshop, shop or industrial unit, the TSC is therefore calculated on the rental value of the premises + taxable equipment. 3. TSC: Geographical Scope The Municipal Services Tax finances roads, lighting, street cleaning and other local services. It applies to taxable properties located: Within urban perimeters of urban communes, In peripheral zones defined by planning rules, In delimited centres of rural communes, In summer, winter and thermal resorts, And, since recent reforms, in certain areas covered by an urban development plan, even if they look like “outskirts”. Practical reflex: if your property is in a built‑up or planned urban area, assume that TSC applies, unless a specific exemption exists. 4. How Are These Taxes Calculated? The key concept: Rental Value (Valeur Locative – VL) The rental value is the annual theoretical rent your property could generate. It is determined by the administration based on: Local market rents for similar properties, The characteristics of your property (location, surface, condition, use), Periodic automatic revaluations. All calculations (TH and TSC) start from this rental value, then apply abatements and tax rates. TSC rates On the rental value (after abatements), the TSC rate is: 10.50% in urban areas, delimited centres and tourist resorts, 6.50% in peripheral areas or zones covered by a planning document but outside core urban perimeters. Who receives the money? The TSC revenue is shared as follows: 95% for the commune, 5% for the region. 5. Exemptions and Abatements: Paying Less Legally Main residence & MREs: 75% abatement For both Housing Tax and TSC: You benefit from a 75% abatement on the rental value if: The property is your main residence (you, your spouse, or direct ascendants/descendants), or It is the main residence in Morocco of a Moroccan residing abroad (MRE), occupied by you or close family. This abatement drastically reduces the taxable base. 5‑year exemption for new constructions (TH only) For new constructions used as a main residence: You get a 5‑year full exemption from Housing Tax, starting from the year after completion, On condition that you file the completion declaration within the legal deadline. Important: this does not exempt you from TSC, which remains due (but with the 75% abatement if it is your main residence). Non‑recoverable small amounts (200 MAD threshold) If the total of local taxes due (TH + TSC) for a year is less than 200 MAD, the administration usually does not pursue recovery. In practice, no effective payment is required below this threshold. Permanent full exemptions Typically exempt from TH and TSC: State‑owned buildings, Premises of political parties and trade unions, Certain foundations and cooperatives, subject to strict conditions (activity, turnover, public interest). 6. Owner vs Tenant: Who Pays What? Legal rule The legal taxpayer is the owner or usufruct holder, even if: The property is leased, The tenant actually reimburses the tax under the lease. The DGI will always turn to the owner first. In practice: what the lease should say Many commercial and residential leases include a clause stating that: The TSC, and sometimes the TH, are “recoverable charges” to be reimbursed by the tenant. Advice: Always include a clear clause on TH/TSC in the lease, Specify who pays, and how the owner proves payment (tax notice, proof of payment). In case of dispute, the court will look at the lease, but tax administration will still chase the owner if taxes remain unpaid. 7. Practical Guide: Payment, Deadlines and Penalties Tax calendar Tax notices (avis d’imposition) are generally issued around March/April. The deadline for payment is 31 May each year for TH and TSC. Where and how to pay (2025+) You can usually pay: Online via the DGI portal (and, during transition, via TGR online services), (tgr.gov.ma) At partner banks (branches, ATMs, e‑banking, mobile banking), At tax offices / Treasury offices, depending on what is indicated on your tax notice. Late payment penalties After 31 May: 10% flat penalty, 5% surcharge for the first month of delay, Then 0.5% per additional month or fraction thereof. In case of proven bad faith (fraud, concealment), higher penalties and forced recovery measures can apply. 8. Your Reporting Obligations: Don’t Get Caught Out You must file a declaration (often called “completion / change declaration”) in particular when: A new construction is completed, You make extensions or major renovations, There is a change in ownership (sale, gift, inheritance distribution), There is a change in use (from residential to professional, or the opposite). This must be done within the legal deadline (commonly by 31 January of the year following the event). If you fail to declare: You risk losing the 5‑year exemption on Housing Tax, Your rental value may be set too high or corrected retroactively. Tax clearance (Quitus fiscal): the “lock” on your sale Before signing a deed of sale with a notary or adoul, you must provide a tax clearance certificate proving that: All taxes affecting the property (including TH and TSC) are fully paid. If there are arrears or an ongoing dispute: The notary will block the transaction until the situation is settled. Practically: start checking your TH and TSC situation several weeks or months before you plan to sell. Main Residence vs Secondary Residence (TH/TSC)   Main residence Secondary / vacant property Rental value (VL) Same assessment method Same Abatement –75% (TH + TSC) None 5‑year exemption (TH) Yes, for new main residence (subject to declaration) None TSC Due, but reduced by 75% abatement Due at full rate Impact on capital gains Helps prove main residence (useful for TPI / capital gains relief) Usually less favourable tax treatment FAQ 2025 1. Am I exempt from Housing Tax if I do not live in the property (vacant dwelling)? No. Vacancy alone does not grant an exemption. Only main residence status (you or close family living there) or specific legal exemptions can reduce or remove TH. 2. How can I challenge a rental value that is too high? You can file a reasoned claim with the DGI (online or in writing) within the legal deadline, attaching evidence: market rents for similar properties, photos, technical reports, etc. The administration may review the rental value. 3. Is TSC due on bare land? TSC mainly targets built property and certain professional equipment. Urban bare land is usually taxed under a different tax: the Tax on Urban Undeveloped Land (TNB), with its own rules and rates. 4. Can I pay my Housing Tax by bank transfer / online? Yes. Payment is generally possible through online platforms (DGI/TGR), partner banks, and physical counters indicated on your tax notice.

The exemption from Taxe sur le Profit Immobilier (TPI) on the main residence is one of the most important mechanisms in real estate taxation in Morocco. Understanding it properly helps you prepare the sale of your home, secure the notarial process and optimise your net real estate capital gain in full compliance with the law. 1. Reminder: TPI and real estate capital gain TPI (real estate capital gains tax) is due when you sell a property for a price that is higher than its acquisition cost. In general: the real estate capital gain is the difference between the sale price and the cost price (purchase price, acquisition costs, eligible renovation works, etc.); this net gain is, in principle, taxed at a rate of 20% (subject to the current Finance Law). The sale of the main residence may, however, benefit from a TPI exemption, under certain conditions. 2. When is a property considered a main residence? To qualify for the exemption, the property must be recognised as the owner’s principal home by the Moroccan tax authorities. In practice, this is the dwelling: where the owner lives on a regular and effective basis; where they receive mail and manage their day‑to‑day life; which is neither a secondary home nor a purely rental investment. The exact rules (minimum occupation period, special cases, etc.) are set by the Finance Law and may evolve. It is therefore essential to check the conditions applicable at the time of the sale.   3. General conditions for TPI exemption on the main residence Without going into figures that may change, the underlying logic is stable: Real and continuous occupation The exemption targets the seller’s actual home, not a property held purely for speculation. Discontinuous occupation or predominantly rental use can jeopardise the tax advantage.   Minimum occupation / holding period The law requires a minimum occupation period of the property as a main residence. Once this threshold is met, the gain realised on the sale of the main residence may be exempt from TPI, subject to the other legal conditions.   Only one main residence An owner may hold several properties, but only one main residence can benefit from the exemption. In the event of an audit, you must be able to prove that the property sold is the one where you actually lived.   4. Documents to prepare for the tax authorities The TPI exemption on the main residence is not automatic. The tax administration may request concrete evidence, such as: national identity card or residence permit showing the address of the property; water, electricity, internet or phone bills in the owner’s name; residence certificate issued by the local authority or commune; bank documents, receipts and correspondence sent to this address. Keeping these documents for several years strengthens your file in the event of a review by the Direction Générale des Impôts. 5. Common mistakes that lead to loss of the exemption Several situations can result in refusal of the TPI exemption on the main residence: Renting out the property (fully or almost fully) shortly before the sale, while presenting it as a main residence; being unable to prove the minimum occupation period required by law; having official documents (ID card, bills, certificates) showing a different main address; confusing the purchase date with the actual move‑in date (long renovations, delayed occupation, etc.), which may reduce the recognised occupation period. Support from a notary or tax adviser generally helps anticipate and avoid these pitfalls. 6. Special cases: expatriates, MRE and foreign owners For Moroccans Residing Abroad (MRE), dual nationals or foreign owners in Morocco, the key question is the same: proving that the property sold is indeed a main residence in Morocco. In practice: a home used only for holidays will hardly be recognised as a main residence; a property where the owner stays regularly and for extended periods, with consistent documentary proof, may be treated as a main residence, subject to the applicable legal conditions. For these profiles, it is strongly recommended to seek a tailored opinion before putting the property on the market. 7. Role of the notary and best practices The notary plays a central role in the application of TPI: checking eligibility for exemption as a main residence; collecting supporting documents to be provided to the tax authorities; preparing the TPI declaration or the exemption clause in the deed of sale. To secure your transaction: address the main residence issue several months before the sale; have your situation reviewed by a professional (notary, chartered accountant, tax adviser) in light of the latest Moroccan tax legislation; ensure consistency between your actual use of the property, your official documents and what you declare. A clear understanding of the TPI exemption on the main residence in Morocco will help you maximise your net real estate capital gain while fully complying with Moroccan real estate tax rules.  

Yes, buying your future home in Marrakech in 2026 is not only possible but represents a remarkable strategic opportunity,  provided you master the specifics of the Moroccan real estate market and avoid the legal pitfalls that await poorly accompanied buyers. Whether you're a retiree seeking year-round sunshine, a digital nomad looking for an affordable primary residence at the gateway to Europe, or an investor attracted by the profitability of vacation rentals, Marrakech caters to all these profiles. But between authentic riads in the Medina, luxury villas in the Palmeraie, off-plan VEFA programs on the Fez road, and renovation properties on the Ourika or Amizmiz routes, how do you identify the right neighborhood, secure your purchase, and optimize your real estate investment? The current excitement is driven by several catalysts: preparation for the 2030 World Cup, the TGV extension, continuous infrastructure improvements (international schools, private clinics, airport), and attractive taxation compared to Europe. Yet behind this appealing facade lie crucial technical realities: the AVNA requirement for agricultural land, the subtleties of land titles, dirham convertibility management, and post-2023 seismic standards. This comprehensive guide provides all the keys to successful purchase: detailed neighborhood mapping by lifestyle, new vs. resale comparison with their respective advantages, step-by-step legal process breakdown, financing and monetization strategies via Airbnb, and above all, an actionable checklist to sign with peace of mind. Whether you're targeting a secondary residence with heated pool in a gated community or a riad with strong rental potential, here's everything you need to know to turn your project into reality. Why is Marrakech One of the Best Real Estate Destinations in 2026? An Exceptional Lifestyle at Europe's Doorstep Year-round sunshine is one of the main selling points: over 300 days of sunshine, mild winters (15-20°C) perfect for escaping European gloom. This "inverted seasonality" particularly attracts retirees and digital nomads seeking quality of life. Infrastructure now rivals international standards: cutting-edge private clinics (Al Madina Clinic, Clinique du Soleil), international schools (AMIR, George Washington Academy), prestigious golf courses, and an international airport with daily connections to European capitals. The "Morocco 2030" Effect: Accelerated Economic Momentum Co-hosting the 2030 World Cup catalyzes massive investments: infrastructure modernization, planned TGV extension toward Marrakech-Agadir, highway network improvements. These major projects mechanically increase land value, particularly on strategic routes (Fez road, Casablanca road). However, distinguish speculation from reality: short-term gains (2-3 years) remain moderate, but prospects toward 2030-2035 are promising, especially for well-located properties with competitive price-to-quality ratios. Attractive Taxation and Cost of Living The Franco-Moroccan tax treaty avoids double taxation for tax residents. Cost of living remains 30-40% lower than Western Europe: affordable domestic services (guard, cook, gardener), controlled current expenses. Enough to largely offset initial acquisition costs. Where to Buy Your Future Home in Marrakech? Neighborhood Mapping The Medina: For History Lovers and Rental Profitability Target audience: Vacation rental investors and charming secondary residence buyers. Authentic riads (€2,000-5,000/m², approximately depending on renovation level) offer exceptional rental potential on Airbnb, especially during events (Film Festival, Marrakech du Rire). The unique historical atmosphere and proximity to souks attract high-end international clientele. Drawbacks: Difficult car access (narrow streets), lack of private outdoor spaces, complex management for primary residence with children. Hivernage and Gueliz: Chic Urban Living Target audience: Primary residence or city pied-à-terre for professionals and remote workers. These historic neighborhoods mainly offer high-end apartments (€3,000-4,500/m² approximately) with shops, restaurants, and nightlife in immediate proximity. Fiber optic is generally available, an essential criterion for digital nomads. The Palmeraie and Golden Triangle: Iconic Luxury Target audience: High budgets (>€1M approximately) seeking prestige and large spaces. Luxury villas on vast tree-lined plots (2,000-10,000m² approximately), gated communities with premium services (golf, spa, restaurants). Heated pools and high-end facilities are standard. Ideal for luxurious secondary residence or wealth investment. The "Routes" (Ourika, Amizmiz, Fez, Ouarzazate): Space and Nature The most dynamic areas for families. Route de l'Ourika: Spectacular Atlas views, green setting, attractive prices (€1,500-3,000/m² approximately). Strong rental demand for villas with pools.   Route d'Amizmiz: Concentration of golf estates (Samanah, Assoufid), international clientele, excellent medium-term appreciation.   Route de Fès / Targa: More residential, proximity to international schools, favored by expatriates and affluent Moroccan families.   Crucial point: For foreigners buying outside urban perimeter, AVNA (Non-Agricultural Vocation Certificate) is mandatory. This administrative authorization confirms the land is no longer classified as agricultural. Without it, the sale is legally void. Your real estate agency must verify this beforehand. What Type of Property to Choose: Off-Plan Villa (VEFA) or Resale? Buying Off-Plan (VEFA): Opportunity or Risk? Advantages: Price 15-25% below market, customization of finishes, reduced notary fees, staggered payments (10% reservation, then installments according to progress). Major risks: Frequent delivery delays (6-18 months), developer bankruptcy risk (check track record), finishes not matching promises. Blocking point: Absence of individual land title until delivery prevents any bank loan and mortgage. Expert advice: Require completion guarantee (insurance policy), visit other developer projects, and reserve 10-15% of budget for missing finishes. Buying Resale: Safety First Advantages: Immediate visibility (no surprises), available land title enabling bank credit, rental exploitation upon signing, mature garden and tested equipment. Vigilance points: Structural condition (often improvable thermal insulation), technical installations to verify (pool, septic tank, well), price per m² generally 20-30% higher. Post-2023 earthquake: Even though Marrakech was little affected, systematically have structure verified by construction expert, especially for buildings predating RPS 2011 seismic standards. Riad, Detached Villa, or Villa in Gated Community? Villa in gated community: 24/7 security, shared maintenance (pool, green spaces), co-ownership charges (€150-400/month approximately), expat community, ideal primary residence. Detached villa: Total privacy, no charges, but 100% maintenance responsibility (guard essential), geographical isolation. Riad: Unique charm, maximum rental profitability, but constraining daily life (parking, medina noise). The Buying Process in Morocco: Legal and Administrative Steps Legal Prerequisites for Foreigners Good news: No special permit required to buy in urban areas. Only restriction: agricultural land requires AVNA, issued by Ministry of Interior (2-6 month delay). Purchase structure: Own name (simple, easier resale) vs Moroccan company SCI/SARL (tax optimization for intensive furnished rentals, but more complex). The 4 Key Transaction Steps Offer and reservation: Price negotiation, scope definition (furnished/unfurnished?), 5-10% reservation generally non-refundable.   Preliminary sales agreement: Mandatory signing before Moroccan notary, 10-30% deposit. Notary verifies land title validity at Land Registry (French cadastre equivalent).   Fund transfer: Crucial: Transfer all funds through Moroccan bank with exchange certificate. This traceability guarantees "retransfer right" upon resale (capital + capital gain repatriation).   Final deed: Balance payment, authentic deed signature, Land Registry registration (2-4 week delay). You then receive your final land title.   Additional Fees and Overall Budget Beyond displayed price, plan 7-8% additional: Registration fees: ~4% Land Registry: ~1.5% + fixed fees Notary fees: ~1% Real estate agency fees: 2.5-5% excl. tax (generally seller, but negotiable) Concrete example: €500,000 villa = plan €535,000-540,000 total budget. Financing Your Purchase: Credit and Currency Transfer Obtaining Mortgage in Morocco as Foreigner 2025 conditions: Minimum 30-40% down payment, 5-7% rate (varies by bank), max 15-20 year term, foreign income accepted by international banks (BMCE, Attijariwafa, CIH). Resident vs non-resident difference: Moroccan tax residents get slightly better conditions (rate -0.5 to 1%). Exchange Office and Convertibility Major pain point: Moroccan dirham is not freely convertible. To repatriate your capital + capital gain upon resale, all fund entries must be declared via exchange certificate issued by your Moroccan bank. Keep these documents carefully throughout property ownership. Monetizing Your Investment: Vacation Rentals Rental Potential in Marrakech Key figures: 50-70% occupancy rate depending on location, €80-400 nightly rate depending on quality. Recurring events (Film Festival, golf competitions, conferences) generate demand spikes at premium rates. High-performing areas: Medina riads (6-9% yield), Ourika road villas with pool (5-8% yield), Gueliz apartments (4-6% yield). Airbnb Regulation in Morocco: What You Need to Know Legality: Mandatory declaration to Ministry of Tourism, recommended tourist classification. Mandatory police form for each traveler (electronic transmission via approved platforms). Rental taxation: Rental income taxable (IR: progressive scale or 20% withholding tax after 40% deduction). Advice: hire local accountant. Property Management: Delegate to Earn More? Professional concierges: Manage 24/7 check-in, cleaning, pool maintenance, traveler relations. 20-30% commission on turnover, but optimize occupancy rate and positive reviews. Differentiating asset: Offering high-end services (cook, driver, resident guard) justifies premium rates (+30-50%) and builds international clientele loyalty. Ultimate Checklist Before Signing -> Land Title: Verify authenticity at Land Registry, absence of mortgages or easements. -> Urban compliance: Up-to-date cadastral plans? Undeclared extensions regularizable? -> Water and Electricity: Official ONEE connection or well? Crucial with current water stress: wells authorized only with Hydraulic Basin Agency declaration. -> Pool: Regulatory volume? Functional filtration system? Pool heating budget (€600-1,200/year gas). -> Neighborhood: Future construction projects (nuisances, view loss)? Consult municipal urban plans. -> Fiber optic: Actual availability (test speed) essential for remote workers. -> Co-ownership: Syndicate financial status, voted unprovisionned works? Conclusion: Marrakech, a Winning Bet for the Future Buying your future home in Marrakech in 2026 combines exceptional quality of life, advantageous taxation, and solid appreciation prospects toward 2030. Year-round sunshine, modern infrastructure, and European proximity make it a choice destination for primary residence, secondary residence, or rental investment. Keys to success: Choose your neighborhood well according to your profile, secure legally through competent notary, anticipate hidden costs (water, maintenance, local taxes), and for investors, delegate property management to seasoned professionals. Ready to realize your project? Contact our real estate agency for personalized property hunting, borrowing capacity estimate, or visit our turnkey villas with pools in Marrakech's most sought-after gated communities.