1. 1. Unfurnished vs furnished rental: distinct tax regimes
Moroccan CGI distinguishes 2 main tax regimes.
Unfurnished rental — real estate income, 40% allowance
Regime applicable to any property rented without furniture. Taxable base: annual gross rent × 60%. The 60% balance subject to IR at progressive scale.
Furnished rental — BNC, 50% allowance
Regime applicable if property is rented WITH furniture. Tax regime: Non-Commercial Profits (BNC). Taxable base: gross rent × 50%.
Special case — Airbnb short-term rental
Tax regime identical to furnished (BNC 50% allowance). BUT VAT obligation if annual turnover exceeds MAD 500,000.
2. 2. Detailed IR calculation by profile
IR on rental income adds to your global IR.
2026 IR scale reminder
Bracket 1: 0 to MAD 30,000 = 0%. Bracket 2: 30,001 to 50,000 = 10%. Bracket 3: 50,001 to 60,000 = 20%. Bracket 4: 60,001 to 80,000 = 30%. Bracket 5: 80,001 to 180,000 = 34%. Bracket 6: > 180,000 = 38%.
Example 1 — Employee MAD 12,000/month + 1 unfurnished apartment MAD 6,000/month
Annual income: salary MAD 144,000 + gross rent MAD 72,000. Taxable salary: MAD 109,000. Rent taxable base: MAD 43,200 (60%). Total taxable: MAD 152,200. IR ~ MAD 34,548.
Example 2 — Unfurnished vs furnished comparison same rent MAD 72,000
UNFURNISHED: rent base MAD 43,200, marginal IR ~ MAD 14,700. FURNISHED: rent base MAD 36,000, IR ~ MAD 12,240. Furnished savings vs unfurnished: MAD 2,460/year (16.7%).
Example 3 — MRE with foreign pension + 1 rental apartment
France pension MAD 275,000/year. Casa rent MAD 84,000/year. Pension benefits 80% allowance. IR ~ MAD 15,700 (5.7% of gross income — very advantageous).
3. 3. Capital gain at resale: 2026 rules
When selling real estate in Morocco, capital gain is taxable under specific rules.
Tax rates by holding duration
Holding < 6 years: 20% on net capital gain. Holding ≥ 6 years with constructed property: 30%. PRIMARY RESIDENCE inhabited > 6 years: TOTAL EXEMPTION (article 63 CGI).
Taxable capital gain calculation
Gross capital gain = Sale price - Acquisition price (revalued). Acquisition fees + improvement works added to purchase price. Example: purchase MAD 1.2M + MAD 80k fees + MAD 150k works = MAD 1.43M. Resale MAD 1.73M. Net gain MAD 300k. IR: 20% × 300k = MAD 60k.
Capital gain declaration and payment
ADC-080 declaration filed within 30 DAYS after deed signing. Notary withholds at source. Every seller must obtain "fiscal clearance" from DGI before deed signing.
4. 4. 2026 charges and legal optimizations
Legal optimizations to reduce taxable base.
Charges INCLUDED in flat allowance
40% (unfurnished) / 50% (furnished) allowance includes flatly: co-ownership charges, local TH/TSC taxes, PNO insurance, management fees, vacancy, regular maintenance.
Improvement works ADDED to purchase price
Works increasing property value (extension, raising, heavy renovation) added to purchase price for capital gain calculation. KEEP all invoices throughout holding duration.
Property dismemberment and donation
Advanced estate strategy: give bare ownership to children while keeping usufruct. Tax advantages: avoids future capital gain, reduces death transfer duties.
Investment via real estate SARL
For significant rental estates (5+ properties, > MAD 10M total value), creating a dedicated real estate SARL allows: real accounting with effective deduction of ALL charges, IS taxation 20-25% on net profit, easier family transfer.
5. 5. 2026 reporting obligations
Every landlord-owner has 3 main annual reporting obligations to DGI.
Annual global income declaration ADC 010 (before March 31)
Mandatory annual form. Specific section for real estate income and BNC. Declare: annual gross rent, tenant identity, rental duration. Online filing via SIMPL-IR.
Sale declaration ADC 080 (within 30 days)
Mandatory at each real estate sale. Declaration in duplicate. Mentions: sale price, purchase price + fees + works, calculated capital gain.
Fiscal clearance prior to any sale
Mandatory document to obtain from DGI BEFORE deed signing. Certifies you're up-to-date on all taxes. Free request, issuance delay 15-30 days.
6. FAQ
Q.How is rental income taxed in Morocco 2026?
Q.Is it better to rent a property unfurnished or furnished in Morocco 2026?
Q.What are real estate capital gain tax rates in Morocco 2026?
Q.Can real charges be deducted from rental income in Morocco 2026?
Q.Must an MRE declare Moroccan rents in country of residence?
Q.How to declare rental income in Morocco 2026?
Q.Is investment via real estate SARL tax-advantageous in Morocco 2026?
Calculate Your Rental IR
Our simulator calculates your exact IR by rents, charges, other income. Compares unfurnished vs furnished.
Launch IR simulator