Taxes in Morocco
Morocco has a progressive income tax system. Understanding tax residency and the favorable pension regime is crucial for expats and retirees.
Tax Residency
You are a Moroccan tax resident if:
- Your habitual home is in Morocco
- You spend 183+ days in Morocco in a calendar year
- Your center of vital interests is in Morocco
Residents: Pay tax on worldwide income
Non-residents: Pay tax only on Moroccan-source income
Income Tax Rates (2025-2026)
| Annual Income (MAD) | Rate |
|---|---|
| 0 - 40,000 | 0% (exempt) |
| 40,001 - 60,000 | 10% |
| 60,001 - 80,000 | 20% |
| 80,001 - 100,000 | 30% |
| 100,001 - 180,000 | 34% |
| 180,001+ | 38% |
Exemption threshold raised from 30,000 to 40,000 MAD in 2025 Finance Law
Key Tax Types
Income Tax (Impôt sur le Revenu / IR)
- Progressive rates 0-38%
- Employment income withheld by employer
- Self-employed file annually
Corporate Tax (IS)
- Progressive: 10%-35% based on profit
- CFC zone: 0% first 5 years, then 8.75%
VAT (TVA)
- Standard rate: 20%
- Reduced rates: 7%, 10%, 14% for certain goods/services
Property Tax
- Urban tax: based on rental value
- Rental income: 10% (under 120,000 MAD) or 15% (above)
- Optional flat rate: 20% for rental income (2025 reform)
Capital Gains on Property
- 20% of net gain (minimum 3% of sale price)
Pension Tax Benefits (Major Advantage)
For Foreign Retirees:
- 80% reduction on income tax for foreign-source pensions repatriated to Morocco
- Effective tax rate on pensions: just 4-7.6% instead of 20-38%
- From January 2026: Basic pension income fully exempt from income tax
- This makes Morocco one of the most tax-friendly retirement destinations
No Wealth, Gift, or Inheritance Tax
- Morocco has no wealth tax
- No gift tax between family members
- No inheritance tax in the Western sense (Islamic inheritance law applies)
- This is a significant advantage for high-net-worth individuals
Social Security
Employed in Morocco:
- Employee: ~6.74% of salary
- Employer: ~21.09% of salary
- Covers pension, family allocations, medical care
Self-employed:
- Must register with CNSS
- Contributions based on declared income
Tax Treaties
Morocco has double taxation agreements with 50+ countries including:
- France, Spain, Germany, Italy, most EU
- United States, United Kingdom, Canada
- UAE, Saudi Arabia, Qatar
Filing and Payment
Deadlines:
- Annual return: Before March 1 (for previous year)
- Employer withholding: Monthly
Filing:
- Online through the DGI (Direction Générale des Impôts) portal
- French or Arabic language
- Tax advisors (expert-comptable) recommended for complex situations
Pro Tips
- •Foreign retirees benefit from an 80% tax reduction on repatriated pensions
- •Track your days carefully - 183+ days makes you a tax resident on worldwide income
- •No wealth, gift, or inheritance tax makes Morocco attractive for asset planning
- •Use a local expert-comptable (accountant) for tax filing - the system is in French/Arabic
- •CFC zone in Casablanca offers 0% corporate tax for 5 years for qualifying businesses
Have questions about taxes in Morocco?