TPI 6-year exemption: mortgage + home insurance combo 2026

1. TPI: what it actually is in 2026

The Professional Property Tax (TPI) is the new name for the former edility tax, restructured under Article 247 of the Moroccan General Tax Code. It applies annually to all built properties located within urban municipalities and delimited centers. The rate ranges from 10.5% to 13.5% of rental value depending on locality, with a 75% abatement for the owner's primary residence.

Unlike the Housing Tax (TH) and Communal Services Tax (TSC), TPI is a separate tax managed directly by the General Tax Directorate (DGI). It applies from the first year of occupation, unless you activate the 6-year exemption reserved for new primary residences, a scheme explicitly renewed by the 2026 Finance Law.

2. 6-year exemption: conditions for new primary residences

Article 247 of the CGI grants a full TPI exemption for 6 consecutive years to any taxpayer acquiring or building housing intended as their primary residence. Conditions are strict but accessible.

• New property: acquired from a developer or self-built on land title (no resale between individuals over 5 years old)
• Effective occupation within 12 months following acquisition or completion of works
• Prior declaration to DGI via form ADP060F-20E with supporting documents
• Exclusive allocation to primary housing (no rental, no mixed commercial premises)
• The 6-year count starts on January 1st of the year following first occupation

3. Combining TPI + mortgage + Daam Sakane + Mourabaha

The 6-year TPI exemption is fully combinable with all real estate financing schemes available in Morocco. Whether you finance your primary residence through a conventional fixed or variable-rate mortgage, a Mourabaha with a participatory bank (Bank Al Yousr, Umnia Bank, Al Akhdar Bank), or the state-subsidized Daam Sakane program, you retain the full tax benefit.

4. Savings calculation: practical case 1.5M MAD apartment in Casablanca

Consider the concrete case of an executive acquiring a new 110 sqm apartment in Casablanca (Maârif district) for 1.5 million dirhams, financed by a mortgage at 5.2% over 20 years.

The theoretical rental value retained by DGI for this property is around MAD 5,500/month, i.e. MAD 66,000/year. After the 75% primary residence abatement, the TPI taxable base drops to MAD 16,500. With Casablanca's TPI rate at 13.5%, the theoretical annual contribution would be MAD 2,227, plus accessory charges (TSC notably) bringing the real avoided bill to around MAD 6,000/year including all municipal levies.

5. DGI declaration procedure: step by step

The exemption is not automatic. You must actively declare it to DGI within 90 days of acquisition or completion of works. Here's the procedure validated by the tax administration in 2026.

• Step 1: Collect form ADP060F-20E from your local DGI subdivision or download from tax.gov.ma
• Step 2: Attach property deed (notary or adoul), occupancy permit or completion certificate
• Step 3: Provide residence certificate issued by the mokataa (local authority)
• Step 4: Attach ID card copy + RIB + occupancy proof (Lydec/Redal bills for at least 3 months)
• Step 5: Submit the complete file against receipt at the competent DGI subdivision
• Step 6: Receive the exemption certificate within 30 to 60 days

6. Home insurance: mandatory from the primary residence

The TPI exemption does not exempt you from insurance obligations. Any primary residence in Morocco must be covered by multi-risk home insurance (MRH) including at minimum: fire, water damage, civil liability towards neighbors and third parties. If your property is financed by a mortgage, the bank systematically requires MRH with subrogation clause in its favor (covering the outstanding capital in case of major loss).

The average MRH cost for a 110 sqm apartment in Casablanca is around MAD 1,800 to 2,500/year depending on coverage (theft, glass breakage, natural disasters since 2020). Comparing 3 to 5 quotes before signing saves up to 40% for equal coverage — Wafir.ma compares offers from Wafa Assurance, Saham, RMA Watanya, Sanad, AXA Morocco in 2 minutes.

7. Cross-sell: delegated borrower insurance — 30% savings

Death-Disability-Incapacity (DII) insurance linked to a mortgage represents 8% to 15% of total loan cost. By default, your bank imposes its in-house group contract (Wafa Assurance for Attijariwafa, Saham for BMCE, RMA for BCP), often 30% to 50% more expensive than a delegated individual contract.

Since the ACAPS 2020 circular reinforced in 2024, borrower insurance delegation is a legal right in Morocco. You can subscribe to an individual contract with a third-party insurer offering equivalent guarantees, present the attestation to your bank, which cannot refuse without written justification. On a 1.5M MAD mortgage at 5.2% over 20 years, net savings reach MAD 45,000 to 70,000 over the full term.

8. Penalties for false declaration or non-occupation

• Full recall of evaded taxes over 6 years with 100% surcharge
• Late interest of 5% the first year + 0.5% per additional month
• Administrative fine up to MAD 50,000 for characterized fraudulent maneuvers
• Registration in the defaulting taxpayers file (impact on future credit)
• In case of resale before 6 years: pro-rata reimbursement of the exemption obtained

DGI regularly conducts a posteriori audits, notably cross-checking data with Lydec/Redal (abnormal water-electricity consumption), the Land Registry (early resale), and IR declarations. In case of false declaration — property rented during exemption period, fictitious occupation, declaring a secondary residence as primary — sanctions are heavy.