Retiring traders: a 50% allowance on the capital gain from selling the business

For many traders and craftspeople, the business (fonds de commerce) makes up most of their business assets and is often their only retirement savings. The Finance Act (Loi de Finances) 2026 introduced a 50% allowance on the capital gain made when the business is sold, for taxpayers under the single professional contribution (CPU) who permanently cease trading. The measure applies to sales and withdrawals of businesses made from 1 January 2026.

The conditions

The new paragraph V of article 31 of the General Tax Code (CGI) sets four conditions, all of which must be met:

1. Being taxed under the CPU: the flat-rate regime for small traders, craftspeople and service providers.
2. Having no pension scheme.
3. Permanently ceasing trading.
4. Being at least 65 years old on the date trading permanently ceases.

What is covered

The allowance applies to the capital gain made or recorded on the intangible assets of the business: customers, goodwill, leasehold rights, trade name and shop sign. Gains on tangible assets (equipment, fixtures and fittings) or on stock are not covered.

The text provides for a 50% allowance “on the amount of the capital gain […] up to one million (1,000,000) dirhams of that amount”. The part of the gain eligible for the allowance is therefore capped at 1 million dirhams (MAD), so the taxable gain can be reduced by no more than 500,000 dirhams.

Examples

A 67-year-old grocer with no pension sells her business in 2026, making a capital gain of MAD 600,000 on its intangible assets. She permanently ceases trading.

• Allowance: 600,000 × 50% = MAD 300,000.
• Taxable gain: MAD 300,000.

A 70-year-old trader sells a well-located business, making a capital gain of MAD 1,600,000 on its intangible assets.

• Allowance: 1,000,000 × 50% = MAD 500,000 (cap).
• Taxable gain: 1,600,000 − 500,000 = MAD 1,100,000.

A 62-year-old craftsman in the same situation does not qualify: he is not yet 65 on the date he ceases trading. Waiting a few years before selling can therefore make a significant difference to the tax bill.

Points to check before selling

• Your age on the date trading permanently ceases, not on the date of the preliminary agreement.
• No pension scheme: if you have paid into a pension scheme, or already receive a pension, check whether you meet this condition.
• Genuine cessation: starting to trade again, even in another form, could put the allowance at risk.
• Allocation of the price: the deed must clearly separate intangible assets, tangible assets and stock.
• Payment method: since 1 July 2026, the sale of a business that is not paid by a traceable method, whatever the price, bears an additional 2% registration duty (droit d’enregistrement).
• Filing obligations on cessation: notice of cessation, settlement of taxes due and formalities at the trade register (Registre de Commerce, RC).

A social measure that calls for planning

This measure reflects a reality: for many small traders, selling the business takes the place of a pension. It only delivers its full benefit if the sale is well planned: a realistic valuation of the business, the right timing, a properly drafted deed and traceable payment.

Our tax and legal team helps traders and craftspeople pass on their business. To discuss your situation, get in touch.