Belgian Tax Moroccan Income MRE Declaration Requirements

Having an account in Morocco is one thing. Earning income from it is another. For Moroccans who are tax residents in Belgium, certain income earned in Morocco may need to be declared to the Belgian tax authorities, even when it has already been received or taxed in Morocco.

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The SPF Finance reminds residents that a Belgian resident must declare their worldwide income. This rule applies to Belgian income, but also to income earned abroad. Morocco is therefore not exempt from this obligation when a person is a tax resident in Belgium.

The situations can be very common. An MRE may receive interest on a Moroccan bank account, collect rent from an apartment in Morocco, receive a pension, obtain dividends, conduct professional activity, or hold an investment abroad. These income sources should not be ignored when completing the tax return.

The rule is often misunderstood. Many believe that income paid in Morocco to a Moroccan account falls solely under Moroccan tax jurisdiction. But for a Belgian resident, the location where the money arrives is not sufficient. What also matters is the tax residence of the person receiving the income.

Declaring does not mean paying twice

Filing a declaration in Belgium does not automatically mean that the same income will be taxed twice. Belgium and Morocco have a convention to prevent double taxation. Depending on the nature of the income, the tax may be due in Morocco, taken into account in Belgium, or subject to an exemption mechanism.

But even when foreign income is not taxable in Belgium due to a convention, it must in principle be mentioned. It can notably serve to determine the tax rate applied to other income of the Belgian taxpayer. This is what the administration calls exemption with progressive rate reservation.

Real estate income is a frequent case. A Moroccan property owner living in Belgium may rent an apartment or house in Morocco. This income must be distinguished from a property that is simply not rented. Depending on the use of the property and the type of rental, the Belgian tax authority may request information on the cadastral income, rental amounts, or the tax situation in Morocco.

Interest and dividends must also be examined closely. When a Belgian resident receives interest or dividends directly from a foreign bank or company, without intervention from a Belgian organization that has withheld a withholding tax, this income may need to be indicated in the declaration. The fact that a withholding has been made abroad does not automatically replace the Belgian withholding tax.

Even a simplified declaration proposal does not always solve the problem. The SPF Finance clarifies that if foreign income is not pre-filled, the taxpayer should not simply accept the proposal. They must submit a complete declaration mentioning the relevant income.

For MREs in Belgium, the risk often comes from modest or old income: a small interest-bearing account in Morocco, a family property rented for a few months, local pension, dividends, or occasional professional income. These amounts may seem secondary, but they can still create a declaration obligation.

The Belgian tax authority can also verify certain information through automatic information exchanges provided for by international conventions. Failing to spontaneously declare foreign income can therefore expose you to penalties or tax increases.

The right approach is to distinguish three things: the Moroccan bank account, which may need to be declared as a foreign account; the real estate property in Morocco, which may need to be reported; and the income earned in Morocco, which may also need to appear in the declaration.

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Before completing their declaration, Moroccans in Belgium should therefore take inventory of their income in Morocco: rental income, interest, dividends, pensions, professional income, life insurance, or investments. The money comes from Morocco, but when the taxpayer is a tax resident in Belgium, the Belgian tax authority may also ask to see it.