Morocco Housing Tax exemption: who qualifies in 2026

Who qualifies

Any owner who occupies their home as a primary residence on January 1 of the tax year qualifies, with only one primary residence per fiscal household. The home must be lived in continuously, not just at weekends or during holidays.

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

Effect on the final amount

The 75 % abatement applies to the cadastral rental value (VL) before TH is calculated. Example: for a Casablanca apartment with a VL of MAD 36,000/year, the taxable base after the 75 % abatement drops to MAD 9,000/year, and TH at 10 % comes to MAD 900/year, compared with MAD 3,600 without the abatement.

Adding the TSC (flat 10.5 % rate, no abatement), the total annual bill for a primary residence is usually 4 to 6 times lower than for a rental property.

Supporting documents to keep

No documents are requested up front. In case of an audit, keep your water and electricity bills (showing continuous consumption), a school enrolment certificate for your children at a nearby school, and a residence certificate issued by the commune.

Cumulative conditions

The home must be new (never previously inhabited), become your primary residence within 12 months of purchase, and have a total property value of MAD 700,000 or less (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 claim it, file a request with the local tax office together with a copy of the purchase deed, an ownership certificate, a first-occupancy certificate and a sworn statement that the home is your primary residence.

Once granted, the exemption runs automatically for 5 years with no annual renewal.

Eligible housing

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

Housing acquired via Fogarim is also exempt for 7 years if it 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) get a full TH exemption on their primary residence. The same exemption applies to people with a recognized disability.

Involuntarily vacant housing

Housing left uninhabited for at least 6 months for reasons beyond the owner's control (for sale, unsettled inheritance, major works, rental dispute) may be exempted upon declaration. Supporting documents include a bailiff's vacancy certificate, a works certificate from the syndic, a pending judgment, etc.

Diplomats and public buildings

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

Standard procedure

1. Download the 'TH Exemption Request' form from tax.gov.ma or pick it up at the tax office. 2. Fill in your IF, the property address and the exemption reason, and attach the supporting documents. 3. File it at the local tax office or send it by registered post. 4. The DGI replies within 30 to 60 days; if there is no reply after 60 days, the exemption is tacitly granted.

Appeal in case of refusal

If the DGI rejects your request, you have 60 days to lodge a hierarchical appeal with the Regional Tax Director, then 90 days to bring the case before the Administrative Court. Most refusals come down to missing documents, so prepare the file carefully from the start.