Morocco Housing Tax exemption: who qualifies in 2026

Who qualifies

Any owner occupying their home as primary residence on January 1 of the tax year. Only one primary residence per fiscal household. The home must be continuously inhabited (not just weekends or holidays).

The abatement applies AUTOMATICALLY upon first declaration to the tax office or registration at the land registry, provided the property's 'use' field was correctly filled.

Effect on final amount

The 75 % abatement applies to the cadastral rental value (VL) BEFORE TH calculation. Example: an apartment with VL = MAD 36,000/year in Casablanca → after 75 % abatement, taxable base = MAD 9,000/year → TH at 10 % = MAD 900/year (vs MAD 3,600 without abatement).

Combined with TSC (flat 10.5 % rate without abatement), the total annual bill for a primary residence is typically 4 to 6 times lower than for a rental property.

Supporting documents to keep

No documents are requested spontaneously, but keep in case of audit: water/electricity bills (continuous consumption), school enrolment certificate for children nearby, residence certificate issued by the commune.

Cumulative conditions

Purchase of NEW housing (never previously inhabited); use as primary residence within 12 months of purchase; total property value ≤ MAD 700,000 (2026 ceiling, periodically revalued by the Finance Act).

Duration and formalities

The exemption covers the first 5 years starting from January 1 following the year of purchase. To benefit, file a request with the local tax office with: purchase deed copy, ownership certificate, first-occupancy certificate, and sworn statement of primary-residence use.

No annual renewal needed: the exemption runs automatically for 5 years once granted.

Eligible housing

Housing acquired under State programs: social housing MAD 250,000, low property value (FVI) ≤ MAD 140,000, Daam Sakane program (MAD 100,000 subsidy). These benefit from a 7-year exemption from purchase date.

For housing acquired via Fogarim, the exemption is also 7 years if the property is the primary residence.

Elderly and disabled persons

Taxpayers aged 65 and over whose total taxable net income does not exceed MAD 24,000/year (i.e. MAD 2,000/month) benefit from a full TH exemption on their primary residence. Same for persons with recognized disability.

Involuntarily vacant housing

Housing UNINHABITED for at least 6 months for reasons beyond the owner's control (for sale, unsettled inheritance, major works, rental dispute) may benefit from an exemption upon declaration. Documents: bailiff vacancy certificate, syndic works certificate, pending judgment, etc.

Diplomats and public buildings

Properties belonging to embassies, consulates, diplomatic agents subject to reciprocity (under the Vienna Convention), and all public buildings owned by territorial authorities are exempt.

Standard procedure

1. Download the 'TH Exemption Request' form from tax.gov.ma or get it at the tax office. 2. Fill in with your IF, property address, exemption reason, and attach supporting documents. 3. File at the local tax office OR send by registered post. 4. DGI response within 30 to 60 days. If silent > 60 days, exemption is tacitly granted.

Appeal in case of refusal

If DGI rejects your request, you have 60 days to lodge a hierarchical appeal to the Regional Tax Director, then 90 days to seize the Administrative Court. Most refusals are linked to missing documents — fill the file carefully from the start.