Selling French Property from Morocco: Tax Guide for Expatriates

Selling an apartment or house in France from Morocco is not a simple formality. For many Moroccan expatriates, the property was purchased during years of work in France, kept after leaving or rented out. But at the time of sale, the fact of living in Morocco does not exempt the owner from French tax authorities.

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The first question concerns capital gains. If the property is sold at a higher price than its purchase price, after applying the applicable rules, the capital gain may be taxable in France. The tax administration clarifies that non-residents who sell real estate located in France are subject to the French real estate capital gains regime.

The calculation depends in particular on the purchase price, the sale price, fees, any work taken into account and the length of ownership of the property. The longer the property has been held, the more deductions for length of ownership can reduce the taxable base. Income tax exemption is granted after 22 years of ownership, while social security contributions exemption only applies after 30 years.

For Moroccan expatriates settled in Morocco, another point must be examined closely: social security contributions. Residents of countries outside the European Union, the European Economic Area or Switzerland may be liable for these contributions on real estate capital gains. The overall rate indicated by the administration is 17.2%.

The tax representative, a step that can block the sale

The sale by a non-resident may also require the appointment of a tax representative in France. This obligation concerns in particular sellers domiciled outside the European Economic Area, which may affect Moroccan expatriates residing in Morocco, except in cases of exemption.

However, there are automatic exemptions. A tax representative is not required when the sale price is less than or equal to 150,000 euros per seller. It may also not be necessary when the sale benefits from a total exemption from capital gains, taking into account the length of ownership of the property, both for income tax and for social security contributions.

When the tax representative is mandatory, it can be a company or organization accredited by the administration, a banking establishment in France, the buyer if they are tax resident in France, or another person tax resident in France and accredited. The notary and lawyer cannot fulfill this role in this context.

This step can surprise sellers settled in Morocco. Many think that the notary handles the entire procedure. In reality, the notary plays a central role in the sale and payment of any tax, but does not replace the tax representative when the latter is required.

The tax due on the capital gain is in principle paid by the notary at the time of sale. But the file must be complete before final signature: seller’s tax status, length of ownership, supporting documents, capital gains calculation, possible exemption, tax representative if necessary. An oversight can delay the sale.

Moroccan expatriates must also pay attention to particular situations. A former home in France may have been the main residence before leaving for Morocco, but it does not automatically benefit from the same treatment as a main residence occupied on the day of sale. Certain exemptions exist, but they are regulated and depend on specific conditions.

Before selling, it is therefore preferable to gather documents related to the purchase, work, fees, any loans and years of ownership. These elements can modify the tax calculation and avoid unpleasant surprises.

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The rule to remember is simple: living in Morocco does not prevent you from selling property in France, but the sale remains subject to French rules when the property is located in France. For a Moroccan expatriate, the operation must therefore be prepared with the notary sufficiently in advance, especially if the price exceeds 150,000 euros or if a capital gain is possible.