Yes, property owners in Morocco pay yearly local taxes, and being a foreigner or a non-resident does not exempt you.
The two main ones are the housing tax (taxe d’habitation) and the municipal services tax (taxe de services communaux).
Both are calculated on the property’s rental value, and the bill is generally addressed to the owner.
Quick answer
Most owners of a home in a Moroccan city pay two yearly taxes: the housing tax, at 0% to 30% of the rental value depending on the bracket, and the municipal services tax, at 10.5% of the rental value in urban areas. A principal residence gets a 75% reduction on the housing tax, but a holiday home or a home owned by a non-resident usually does not. New buildings are generally exempt from the housing tax for their first five years.
This article is general educational information, not tax advice. Rates and rules can change, and the assessed rental value is set by the authorities, not by you. Confirm the exact amounts for a specific property with the DGI, the local tax office or a qualified accountant.
Which yearly property taxes do owners pay in Morocco?
Property tax in Morocco is mainly local tax, governed by Law 47-06 on local taxation, which was amended by Law 07-20 (summary of Law 07-20, Ministry of the Interior).
For a typical apartment or villa, three taxes matter:
| Tax | What it applies to | Basic rule |
|---|---|---|
| Housing tax (taxe d’habitation) | Homes in urban areas, whether you live in them or keep them as a second home | Progressive rate on the rental value, 75% reduction for a principal residence |
| Municipal services tax (taxe de services communaux) | Built properties, including rented and empty homes | 10.5% of the rental value in urban areas, 6.5% in some non-urban areas |
| Tax on unbuilt urban land | Empty building plots inside urban areas | A yearly amount per square metre set locally |
These are separate from the one-time taxes you pay when you buy, explained in our guide to property transfer taxes for foreigners.
They are also separate from the tax on the profit when you sell, which you will find in our article on capital gains tax for foreign sellers.
How is the housing tax calculated?
The housing tax is calculated on the annual rental value of the property, meaning the yearly rent the authorities consider it could earn.
You do not choose this value: it is set by comparison with similar properties and revised periodically.
Professional summaries of Law 47-06 describe this progressive scale (Upsilon Consulting, April 2026):
| Annual rental value | Rate |
|---|---|
| Up to 5,000 MAD | Exempt |
| 5,001 to 20,000 MAD | 10% |
| 20,001 to 40,000 MAD | 20% |
| Above 40,000 MAD | 30% |
The 75% reduction applies only to the owner’s principal residence: the rental value is cut to a quarter before the scale is applied.
A holiday apartment in Marrakech, or a home owned by someone who lives abroad, usually pays on the full rental value.
New constructions are generally exempt from the housing tax for five years after completion, which matters if you buy a new build or off plan.
Example to understand the scale (illustrative only)
Imagine a second home with an assessed rental value of 30,000 MAD. The first 5,000 MAD is exempt, the part from 5,001 to 20,000 MAD is taxed at 10%, and the part from 20,001 to 30,000 MAD at 20%. The real bill depends on the value the authorities set and on how the scale is applied to your file, so ask the tax office for the figure before you budget.
How does the municipal services tax work?
The municipal services tax pays for local services such as street cleaning and lighting.
According to the DGI, it is due from the owner or usufructuary, and failing that from the possessor or occupant (DGI, taxe de services communaux).
For homes subject to the housing tax, it uses the same rental value.
For rented properties, the DGI says the base can be the total amount of rent received.
The rate is 10.5% of the rental value in urban areas and 6.5% in certain non-urban areas covered by development plans.
Unlike the housing tax, there is no 75% reduction for a principal residence.
From my experience
One of my purchases in Marrakech came with a shop that was already rented for around €400 per month. Rental income makes a deal attractive, but it also means local taxes and income tax on that rent. If you buy a rented property, budget for both from the first month the rent is paid to you.
For the income side, read our guide to rental income tax for foreigners.
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Do foreigners and non-residents pay property tax in Morocco?
Yes. These taxes follow the property, not the owner’s nationality.
The main practical difference for non-residents is the 75% reduction, which is reserved for a principal residence.
The other difference is paperwork: if you live abroad, you may not receive the notices on time.
Professional sources report that management of these two taxes was transferred to the DGI under Law 14-25 in 2025, so ask the DGI or the local tax office how notices are now sent and paid for your property.
Give someone you trust a written mandate to collect your mail and pay on time, and keep every receipt.
Why should you check property taxes before you buy?
Unpaid local taxes do not always cause problems straight away.
They often surface when the property is sold, because that is when the tax history is checked.
That is one reason the safer route is to pay through the notary, for example with a traceable bank cheque made out to the notary rather than to the seller.
The notary can then check that taxes and charges are settled before the seller receives the money, so you receive a clean property.
Yearly taxes also change what a property really costs you.
A high rental value in a premium area means a higher bill every year, on top of syndic fees, insurance and maintenance.
Before you make an offer, ask the seller for:
- The last housing tax and municipal services tax notices, to see the rental value used.
- Proof that recent years are paid, with receipts or a tax clearance document.
- Whether the home was the seller’s principal residence, because your bill may be higher if it will be a second home for you.
- The monthly syndic fees and any planned building works.
Our property due diligence checklist covers the other documents to request.
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Which mistakes should owners avoid?
| Mistake | Safer alternative |
|---|---|
| Budgeting only for the purchase price | Add yearly local taxes, syndic fees and maintenance to your cost plan |
| Assuming the 75% reduction applies to a holiday home | Plan on the full rental value unless it is your principal residence |
| Ignoring notices while living abroad | Give someone a limited mandate to receive mail and pay, with receipts |
| Buying without checking the seller’s tax history | Ask for recent notices and receipts, and let the notary check before releasing funds |
| Forgetting tax on rent received | Declare rental income and budget the municipal services tax on rented units |
Frequently asked questions
How much is property tax in Morocco per year?
It depends on the rental value set for the property. The housing tax runs from 0% to 30% of that value by bracket, with a 75% reduction for a principal residence, and the municipal services tax is 10.5% in urban areas. Ask the tax office for the rental value of the specific property.
Do I pay housing tax on a home I rent out?
A rented home is occupied by the tenant, and the rules on who pays which tax can differ. The municipal services tax can be based on the rent received. Confirm your case with the DGI or an accountant.
Is a new apartment exempt from property tax?
New constructions are generally exempt from the housing tax for five years after completion. The municipal services tax can still apply, so check both.
What happens if I do not pay?
Late payment can lead to penalties, and unpaid amounts can delay a future sale. Keep receipts for every year.
What should you do before making an offer?
Ask for the seller’s recent tax notices and receipts, work out the yearly cost based on how you will use the property, and let the notary check that everything is settled before any money reaches the seller.
If you are still early in your search, our guide on verifying a title deed before buying is the next step.
Already considering a property?
See the 14 Day Buyer Plan: $299 →Get 14 days of personal buyer support, three private calls and WhatsApp support.
Get help reviewing up to three properties before you commit money.
Anis is the founder of Buy Property Morocco, a research-based resource created to help foreign buyers understand the real process of buying property in Morocco safely.
He focuses on the practical details most buyers only discover too late: title deed checks, notary steps, compromis de vente risks, transfer taxes, foreign banking rules, repatriating money after a sale, and avoiding common mistakes when dealing with agents or sellers.
Anis has personally bought 4 properties in Morocco and shares practical guidance based on real experience, not theory.
If you are seriously considering buying property in Morocco and want private guidance before you send money, pay a deposit, or sign anything, you can book a buyer safety call here:
