MRE taxation in Morocco: complete 2026 guide

Property income earned in Morocco (rents from an apartment or villa, furnished tourist rental) is taxable in Morocco regardless of your fiscal residency, as property IR. 2026 scale: 40% flat allowance for expenses (increased to 50% for new housing during the first 3 years), then progressive IR scale (0% to 38% depending on income). In practice, for an annual rent of 60,000 MAD, IR is about 4,500 to 6,000 MAD. Declaration is made via form ADP040F-16 before March 31 of the following year. Under the tax treaty, this income is then declared in your country of residence (France, Belgium, etc.), where you benefit from a tax credit equal to the Moroccan tax (avoiding double taxation). MRE in France declare via box 4BE on form 2047.

When reselling a property in Morocco, gross capital gain (sale price minus acquisition price indexed for inflation + acquisition costs + documented works) is taxed at 20% for non-residents (slightly more for properties held under 5 years). Three major exemptions: (1) main residence occupied for more than 6 years: total exemption (with occupancy certificate), (2) sale to the State or a local authority: exemption, (3) properties held for over 10 years and sold in certain cases: allowances or exemption. Tax is withheld at source by the notary upon sale and paid to the DGI. Note: an MRE who has held a property for over 10 years and lived in it for more than 6 years before expatriation can claim the main residence exemption by producing residency evidence (old rent receipts, children's school records, etc.).

Good news for MRE returning to Morocco: foreign-source retirement pensions transferred to Morocco benefit from an 80% allowance for Moroccan IR calculation (Article 76 of the GTC). In practice, only 20% of the transferred amount is subject to the IR scale. For a French pension of 3,000 € per month (36,000 €/year, about 389,000 MAD), the taxable base in Morocco would be about 78,000 MAD, with IR around 4,000 to 8,000 MAD, an effective rate of 1.5% to 2%. Compare with the French marginal rate often exceeding 30%. Combined with the tax treaty, returning to Morocco is very tax-advantageous for MRE retirees. Condition: actually transfer the pension to a Moroccan bank account (MRE or resident).