For several years now, Morocco has put in place measures to facilitate and secure real estate investment by foreigners, without the need for them to reside in Morocco. In order to take advantage of these incentives and facilitation measures, it is however advisable to be well accompanied in the acquisition process.

If you buy a property that is already rented out, or if you decide to rent out your residence, you must declare the income from it, which is subject to income tax. The gross property income from rented properties is the total gross rental income. This amount is increased by the expenses normally incurred by the owner and the usufructuary and charged to the tenants, in particular major repairs. It is reduced by the expenses borne by the owner on behalf of the tenants. The net taxable income is obtained by applying an allowance of 40% to the amount of gross property income. It will also be necessary to provide for council tax and local authority tax.

Excluded from the scope of application of the tax is the rental value of buildings which the owners make available free of charge to :

  • Their ascendants and descendants, when these buildings are assigned to the dwelling of the interested parties;
  • State and local authority administrations, public hospitals;
  • Private assistance and charity organisations subject to State control by virtue of Dahir n°1-59-271 of 17 CHAOUAL 1379 (14 April 1960)
  • Associations recognised as being of public utility when the said buildings are home to non-profit charitable institutions. (Article 62)


Income tax scale (IR)

  • From 0 to 30.000 dhs: exemption from IR.
  • From 30.001 to 50.000 dhs: 10% taxation with an abatement of 3.000 Dhs.
  • From 50.001 to 60.000 dhs: Tax of 20%, abatement of 8.000 Dhs.
  • From 60.001 to 80.000 dh: Taxation of 30% abatement of 14.000 Dhs.
  • From 80.001 to 180.000 dh: Taxation of 34% abatement e 17.200 Dhs.
  • More than 180.000: 38% taxation, allowance of 24.400 Dhs.