Foreign companies and non-resident investors who sell Moroccan real estate in 2026 face a procedural change that is both significant and underappreciated: the 2026 Finance Law has replaced the annual capital gains return with a 30-day declaration and payment window, effective from 1 January 2026.
This change applies to any non-resident company without a permanent establishment in Morocco that realises a gain on the disposal of Moroccan immovable property. Understanding the new mechanism, its timeline, and the associated payment obligations is now a prerequisite for any transaction closing after that date.
Before the Reform: The Annual Declaration Regime
Under the framework that applied until 31 December 2025, a non-resident company realising a real estate capital gain in Morocco was required to include that gain in its annual corporate tax return, filed in the ordinary course with the Moroccan tax authority (Direction Générale des Impôts).
In practice, this meant that the tax liability was quantified and settled months after the transaction closed — at the time of the annual return, typically in the third or fourth month following the financial year-end. For companies with no other Moroccan tax presence, this involved a stand-alone annual return filed solely to declare the real estate gain.
The New Regime: Declaration and Payment Within 30 Days
The 2026 Finance Law (Loi n° 50-25) replaces this approach with an obligation to file and pay within 30 days of the month of the sale.
The mechanism is as follows. Within 30 days of completing the sale of Moroccan real estate, the non-resident seller must:
- File a declaration of the capital gain using a simplified form prescribed by the DGI
- Calculate the net gain — sale price minus the tax base of the acquired cost, inflation-adjusted using the official coefficients
- Pay the corporate income tax due on that gain in full, within the same 30-day window
This procedure was clarified and formalised by the DGI’s Note Circulaire n° 737, which specifies the form of declaration required and confirms that both filing and payment must be completed electronically. The Note Circulaire positions the change as a simplification measure for international investors — replacing a complex annual return with a transaction-level settlement.
The Traceability Requirement: A Structural Change in the Market
Alongside the 30-day rule, the 2026 Finance Law introduces a broader traceability requirement for real estate transactions: all payments relating to a real estate sale must be evidenced by a bank transfer confirmation.
This formalisation has a practical consequence that goes beyond tax compliance. The DGI can now cross-reference declared transaction values against bank transfer records. Discrepancies between declared prices and actual fund movements create material audit risk.
Additionally, a supplementary registration duty of 2% applies where the payment instrument used in a real estate transaction is not clearly identified or does not rest on a recognised banking instrument — for transactions above MAD 300,000. This effectively penalises cash transactions and informally documented transfers.
The Applicable Corporate Tax Rate
The IS reform initiated in 2023 reached its final phase in January 2026:
- 20% is the standard IS rate for companies with annual taxable profits below MAD 100 million
- 35% applies to companies above that threshold
For non-resident sellers without a Moroccan PE, the capital gain from the real estate sale forms their entire Moroccan taxable base, meaning the 20% rate will apply in almost all cases.
A separate rule applies to branches of foreign companies transferring profits to their foreign headquarters: a 15% IS withholding applies to the net amount transferred.
Selling Moroccan real estate as a foreign company or non-resident investor? Lafrouji Avocats advises on capital gain calculation, the 30-day declaration procedure and exchange control compliance.
Contact us: contact@lafroujiavocats.com — +212 (5) 22 47 55 29
Rental Income Withholding: The Other 2026 Change
The 2026 Finance Law also extends withholding tax on rental income. Under the new rules, rental payments made to companies subject to IS — and to individuals carrying on a professional activity — are subject to a 5% non-liberatory withholding applied by the paying tenant.
The withholding is creditable against the final IS or IR liability, with any excess refunded. For foreign companies holding Moroccan real estate and leasing it to tenants who have Moroccan withholding obligations, this creates a cash-flow effect and a documentation requirement: withholding certificates must be obtained and matched against the final tax return.
Reduced Registration Duties on Share Sales of Property-Holding Companies
One change in the 2026 Finance Law benefits sellers: the registration duty on the transfer of shares in sociétés à prépondérance immobilière (companies whose assets consist primarily of real estate) has been reduced from 6% to 5%.
For foreign investors who have structured their Moroccan real estate holding through a Moroccan company — a common approach to simplify future exits — this reduction in transaction cost makes the share sale route marginally more attractive relative to an asset sale.
Preparing for a Real Estate Sale: Practical Checklist
For any non-resident foreign company selling Moroccan real estate in 2026:
- Establish the bank account chain: ensure all sale proceeds will be received into a Moroccan bank account from which they can be documented and later repatriated
- Obtain the tax certificate of residence from your home jurisdiction, to apply for treaty relief if applicable
- Calculate the capital gain in advance: the net gain is the difference between the sale price and the tax-adjusted acquisition cost; inflation coefficients are published annually by the DGI
- Register with the DGI for electronic filing if not already registered, since the declaration and payment must be made electronically
- Complete the filing and payment within 30 days of the month in which the sale deed is signed before the notary
Failure to comply with the 30-day deadline triggers late-payment surcharges and may result in a reassessment by the DGI. The new framework is designed to be straightforward for compliant sellers — but the timeline is tight, particularly where the seller’s legal and financial teams are based outside Morocco.
Lafrouji Avocats and Non-Resident Real Estate Sellers
Lafrouji Avocats advises non-resident foreign companies on real estate disposals in Morocco, including the calculation and declaration of capital gains under the 2026 Finance Law, the application of double taxation treaties, exchange control compliance at the time of repatriation, and representation before the DGI in the event of any audit or reassessment.
64 rue Taha Houssein, 20000 Casablanca
+212 (5) 22 47 55 29
contact@lafroujiavocats.com
