Rental income tax in Morocco for foreigners follows the property, not the passport of the owner.
So if your apartment or riad sits in Morocco and earns rent, Morocco can tax that income while you live abroad.
However, what you pay depends on the rent, the tenant, the type of letting and the option you choose.
Below is the current picture, plus the points to confirm with the Direction Générale des Impôts, known as the DGI.
At a glance: Morocco rental income tax for foreign owners
- Moroccan sourced rent is taxable here, even for non resident owners.
- Under the ordinary route, a flat deduction of 40% applies to gross rent.
- The balance enters the income tax scale, which starts with an exempt band and reaches 37%.
- Company and professional tenants normally withhold tax at source, at 10% or 15% of gross rent.
- Owners collecting 120,000 MAD or more may instead be able to elect a final rate of 20%.
- The annual declaration is normally filed before 1 March for the previous calendar year.
- Furnished short term letting may count as a business activity rather than ordinary rental income.
Who must declare Moroccan rental income?
Any owner receiving rent from a Moroccan property sits inside the Moroccan tax system, resident or not.
In practice, therefore, a foreign landlord needs a Moroccan tax identification number and files an annual declaration.
Moreover, filing still matters when a tenant has already withheld tax, because that is how the withholding gets credited.
Small rental incomes have long benefited from an exemption, although published thresholds differ, so confirm yours with the DGI.
How Morocco currently calculates taxable rental income
Under the ordinary route, a flat deduction of 40% comes off your gross rent before anything is taxed.
Because that deduction stands in for normal costs, you cannot usually claim repairs, syndic charges or insurance separately.
The remaining amount then joins your other Moroccan taxable income under the progressive scale below.
| Annual net taxable income in MAD | Rate |
|---|---|
| Up to 40,000 | 0% |
| 40,001 to 60,000 | 10% |
| 60,001 to 80,000 | 20% |
| 80,001 to 100,000 | 30% |
| 100,001 to 180,000 | 34% |
| Above 180,000 | 37% |
Bands move with each finance law, so confirm the current scale before you file.
From gross rent to tax due
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Current rates, withholding at source and the 20% option
Landlords do not all pay the same way, because the tenant decides who sends the money to the authorities.
When the tenant is a company, or an individual taxed on professional profits, tax normally comes off the rent first.
| Your situation | Usual treatment |
|---|---|
| Tenant is a private individual | No withholding, so you declare and pay yourself |
| Company or professional tenant, gross annual rent below 120,000 MAD | Withholding at 10% of gross rent |
| Company or professional tenant, gross annual rent of 120,000 MAD or more | Withholding at 15% of gross rent |
| Gross annual rent of 120,000 MAD or more, by election | Possible final rate of 20% on the gross amount |
Tax withheld by a tenant is normally set against the tax finally due, and an excess can create a refund.
Meanwhile, the 20% election is not automatically cheaper, since a modest rent taxed under the scale can attract far less.
Before you elect anything: ask a Moroccan accountant to compare both routes on your own numbers.
An illustrative calculation, not a quote
Take an apartment let unfurnished at 8,000 MAD per month, with no other Moroccan income.
| Step | Illustrative amount | Note |
|---|---|---|
| Gross annual rent | 96,000 MAD | Twelve months at 8,000 MAD |
| Flat deduction of 40% | 38,400 MAD | Applied under the ordinary route |
| Taxable base | 57,600 MAD | Enters the progressive scale |
| Indicative tax | About 1,760 MAD | Nothing on the first 40,000 MAD, then 10% |
These figures are illustrative only, and they show the method rather than your bill.
Your result changes as soon as you add other income, a second property or a company tenant.
Can mortgage interest be deducted from Moroccan rental income?
Generally not on top of the 40% deduction, because that allowance already stands in for property costs.
Interest relief in Morocco is more closely tied to main residence rules than to investment property.
If you are comparing lenders, read the guide to getting a mortgage in Morocco as a foreigner, then confirm the tax side with an accountant.
Long term rent or Airbnb: does the treatment change?
Yes it can, and this is a common misunderstanding among foreign owners in Marrakech.
Unfurnished letting on a long term lease normally falls under property income, which is the regime described above.
Regular furnished short term letting looks closer to a commercial activity, with its own registration and accounting rules.
Two different worlds for the same apartment
Before assuming the higher gross figure wins, compare Airbnb against long term rental in Marrakech and read the guide to running an Airbnb business in Morocco.
How to declare rental income in Morocco step by step
- Obtain a Moroccan tax identification number, since you cannot file without one.
- Keep a written lease for every tenant, whatever the length of the letting.
- Collect rent by bank transfer, because a traceable trail is easier to prove than cash.
- File before 1 March for the previous year, through the online services of the DGI at tax.gov.ma.
- Declare any tax already withheld by a tenant, so that it is credited against the amount due.
- Pay at filing, then store the receipt with your property file.
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What changes when the tenant is a company?
Company leases look attractive, because payment is regular and the paperwork is usually clean.
Still, the tenant then withholds tax from your rent, which changes the cash reaching you each month.
Ask for the annual withholding certificate, since that document supports the credit you claim when filing.
Holding property through a Moroccan company follows different rules again, as the guide to buying property in Morocco through a company explains.
Several properties, empty months and non resident owners
Moroccan rental income is generally looked at together, rather than property by property.
Two apartments that each look lightly taxed alone can therefore push the total into a higher band.
Vacant periods need records too, because local taxes and assessed rental values can still apply.
Why records matter when you sell or move money abroad
It becomes urgent at two moments: when you sell, and when you send money out of Morocco.
At a sale your notary works through the tax position of the property, so gaps slow everything down.
Owners who bought through a convertible dirham account usually find repatriating money after a sale far simpler.
The tax side of an exit sits in the guide to selling property in Morocco as a foreigner.
Records a foreign landlord should keep
Double taxation and your home country
Morocco taxes the rent first, because the property is located here.
Your home country may then tax the same income, while usually granting relief under a double taxation treaty.
Relief is rarely automatic, though, and it normally depends on declaring the Moroccan income correctly at home.
From my experience
I am Anis Chity, a Moroccan based in Marrakech, and I have personally bought four properties in the city.
My work is the buying side, so I am not an accountant and not a tax adviser.
What I see is that owners cope best with the tax stage when they kept clean documents from the first payment.
A practical checklist for foreign landlords
- Register for a Moroccan tax identification number before the first rent arrives.
- Receive rent into a Moroccan bank account rather than in cash.
- Ask a company tenant for the annual withholding certificate.
- Compare the scale against the 20% election as gross rent approaches 120,000 MAD.
- Tell your home country adviser about the Moroccan income every year.
FAQ: rental income tax in Morocco for foreigners
Must I pay Moroccan tax if I live abroad?
Income from a Moroccan property is generally taxable in Morocco whatever your country of residence.
How is taxable rental income calculated?
A flat deduction of 40% comes off gross rent, and the balance joins your other Moroccan income under the scale.
Can mortgage interest be deducted?
Not usually on top of the 40% deduction, so confirm your own case with a Moroccan accountant first.
Is Airbnb income treated like long term rent?
Often not, since regular furnished short term letting can count as a business activity with extra obligations.
What happens when the tenant is a company?
The tenant normally withholds 10% or 15% of gross rent, and that amount is credited when you file.
Do I combine income from several properties?
Moroccan rental income is generally assessed together, so a second apartment can lift the total into a higher band.
Can I get double taxation relief?
Many countries have a treaty with Morocco granting credit for tax already paid here, subject to declaring it at home.
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This page is general information for foreign property owners, and it is not tax, legal or financial advice.
Moroccan rules change with each finance law, so confirm your position with the DGI or a qualified Moroccan accountant.
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:
