Moroccan Expats Beware: 5 Hidden Tax Traps When Selling Property Back Home

1. Believing that in the absence of profit, no tax is due

Many MREs think that if they sell at the purchase price or at a loss, they pay nothing. This is false: the law imposes a minimum of 3% of the sale price, even in the absence of profit.

2. Forgetting that the exemption for the main residence is not automatic

A property can be exempt from property tax if it has been occupied as a main residence for at least 5 years. But beware: this exemption is only possible once every 5 years. A mistake that is costly when selling properties in quick succession.

3. Not respecting the declaration deadlines

After signing a deed of sale, the seller must declare their property capital gain within 30 days and pay the corresponding tax online. Any delay results in penalties and late payment interest.

4. Neglecting to request a prior opinion from the administration

MREs can request the tax administration before the sale to obtain an opinion on the calculation of the taxable capital gain or on a possible exemption. Many are unaware of this possibility and end up with disputes afterwards.

5. Forgetting the rules specific to joint ownership

In the case of inheritance or co-ownership, each co-owner must declare their share separately and pay the corresponding tax. A frequent omission that often blocks the release of the sale price.

Selling a property in Morocco from abroad requires special vigilance. Knowing these rules makes it possible to avoid unpleasant surprises and unnecessary costs.