Living in Morocco: tax scale from 0 to 37 %, tax residency criteria and additional registration fee of 2 %

This page reports on information published by the Moroccan Ministry of Economy and Finance, the Exchange Office, and the BOFiP (Official Bulletin of Public Finances). Income tax rates range from 0 to 37 % for non-property income acquired since January 1, 2025, with a tax-free allowance of 40,000 dirhams (DH). The General Tax Code (CGI) establishes three alternative criteria for tax residence: permanent residence, center of economic interests, or residence for more than 183 days out of 365. Since July 1, 2026, an additional registration fee of 2 % applies to certain real estate acquisitions where the price is not paid through an accepted method.

The withholding tax on share proceeds is reduced to 12.5 % for amounts distributed since January 1, 2025, and then to 11.25 % since January 1, 2026. The page indicates each point that the sources consulted do not confirm.

Tax residence: three alternative criteria

Article 23 of the General Tax Code (CGI), in the 2014 edition published by the Ministry, subjects individuals who have their tax residence in Morocco to income tax on all their income and profits, whether from Moroccan or foreign sources. Paragraph II specifies that a person has their tax residence in Morocco in one of the following cases:

• She has her permanent home there;
• It has the center of its economic interests there;
• the duration of his stays exceeds 183 days in any 365-day period.

The notes to the finance laws for 2021, 2023, 2025 and 2026 do not indicate any changes to these criteria.

Between France and Morocco, the convention of May 29, 1970, and its amendment of August 18, 1989, establish a dual residence in this order, according to the BOFiP (Official Bulletin of Public Finances): the permanent home, then the center of professional activities, and finally the place of stay. Details can be found on our page dedicated to the convention.

Income tax: a six-tier tax bracket system

The explanatory note for the 2025 finance law, published by the ministry, gives the scale of income other than property acquired from January 1, 2025. The marginal rate increases from 38 % to 37 %.

Circular note no. 737 on the 2026 Finance Law (10/03/2026) does not modify this scale. It increases the family allowance from 500 to 600 DH per dependent, with a ceiling of 3,600 DH instead of 3,000 DH, for income acquired from 1 January 2026.

The 2025 note exempts basic retirement pensions from January 1, 2026, and note no. 737 exempts pensions and annuities from group supplementary retirement contracts administered by CIMR. They do not specify whether these exemptions cover pensions paid by foreign schemes.

Dividends, securities and foreign source income

The note accompanying the 2025 Finance Law gradually reduces the withholding tax on income from shares and equity interests (Article 247-XXXVII-C of the French General Tax Code). It does not specify whether this rate applies to individuals, whether resident or non-resident.

The table of measures in the 2023 Finance Law expressed this schedule by fiscal year: 13.75 % for the fiscal year beginning on or after January 1, 2023, then 12.50 %, 11.25 %, and 10 % for fiscal years beginning on or after January 1, 2024, 2025, and 2026. The more recent 2025 memorandum titles the measure "Revision of Implementation Procedures" and sets the rate according to the distribution date; this is the one that applies. Note No. 737 does not modify this rate.

For sales of securities not held in accounts with authorized financial intermediaries and carried out from January 1, 2026, note no. 737 stipulates that the tax must be paid within thirty days of the sale; securities held in securities accounts remain subject to the withholding tax under Article 174-II-B. A new Article 84 bis requires the annual declaration, before April 1 of the following year, of income and profits from movable capital of foreign origin, along with a certificate from the foreign tax authorities. The tax rates on profits from movable capital are not included in the notes reviewed.

Real estate: acquisition, registration and rentals

Acquisition. The Exchange Office classifies the acquisition of real estate as a foreign investment. For investments financed in foreign currency, its policy guarantees the transfer of income and proceeds from liquidation. It sets no other conditions for non-residents and is undated.

Additional right of 2 %. Article 133-III of the General Tax Code (CGI), as amended by the 2026 Finance Law (Law No. 50-25, Official Bulletin No. 7465 bis of December 16, 2025), establishes an additional registration fee of 2,130 DH on deeds of transfer for valuable consideration of real estate where the price exceeds 300,000 DH. This fee applies if the deed does not specify the payment terms, or if the price is not paid by an accepted method. For a partial payment in cash, the fee applies only to the cash portion. It applies to deeds executed on or after July 1, 2026. Example from the note: a price of 600,000 DH, of which 200,000 DH is paid in cash, results in an additional fee of 4,000 DH.

Rents. For property income received from January 1, 2025, the 2025 note allows you to opt for a flat-rate tax of 20 %, with exemption from annual declaration of this income, when it is subject to a non-flat-rate withholding tax of 10 % or 15 %.

Capital gains. The notes read do not specify the tax rate on capital gains from real estate. They deal with specific cases, such as the transfer of private property into a company's assets or the withholding tax on expropriation compensation paid since July 1, 2025. Article 24 of the convention leaves the taxation of capital gains on real estate to the State where the property is located.

Inheritance, gift and inheritance

The official Moroccan websites consulted do not detail inheritance rights. The BOFiP (Official Bulletin of Public Finances) indicates that Article 33 of the convention applies to registration and stamp duties for estates opened after December 1, 1971, without specifying their treatment, and that the convention does not cover wealth tax. Our page on the convention presents Article 26.

A specific regime: employees of Casablanca Finance City (CFC) companies

Note No. 737 revises the tax regime for employees of companies with "Casablanca Finance City" (CFC) status, for salaries and wages earned from January 1, 2026 (Articles 73-II-F-9° and 79-VII). They are subject to income tax at a flat rate of 20% for a maximum period of ten years, whether continuous or discontinuous; periods worked outside of CFC companies are not counted. Employees may opt for the progressive tax scale by requesting it from their employer before February 1 of the year in question. This page does not detail other conditions.

Coordination with the Franco-Moroccan convention

The BOFiP (version of 24/07/2019) presents the following rules.

Leaving France is subject to tax domicile and exit tax: see related pages below.

What this page does not cover

It does not detail ordinary registration fees, capital gains tax, investment tax, inheritance tax, social security contributions, residence permits, or exchange control regulations beyond the cited Exchange Office page. The wording of Article 23 in the 2026 edition of the French General Tax Code (CGI), published by the Ministry on January 5, 2026, is not detailed here: the text reproduced is from the 2014 edition. Balmont Conseil is neither a law firm nor a local tax advisor: local tax matters must be assessed by a professional based in Morocco. French tax matters, particularly the departure declaration and the accounts to be declared, are addressed in our pages on tax residency and exit tax.

What changes depending on your situation

• The nature of your income: salary, pension, dividends, rent, capital gains.
• The location of your home, the center of your economic interests, and the number of days spent in Morocco.
• The price and method of payment of a real estate purchase, with regard to the additional tax of 2 %.
• Your residency situation in France and Morocco, year by year.

The rule depends on your situation. No results are guaranteed.