Moroccan Expats Beware: 5 Hidden Tax Traps That Could Cost You Thousands

1. Forgetting the municipal services tax

Even if you are exempt from the housing tax (for example for 5 years for a new construction), the municipal services tax is still due. Many MREs mistakenly think it is the same tax. Result: adjustments and penalties.

2. Believing that in the absence of profit, nothing is paid when selling

When selling a property, you always have to pay at least 3% of the sale price, even if you do not make any profit. This minimum applies systematically, except for rare exemptions (for example a main residence under certain conditions).

3. Ignoring the limit of an exemption for a main residence

Selling your main residence can allow you to avoid the tax on land profits. But beware: this exemption is only possible once every 5 years. Many MREs think it is automatic for each sale, which is not the case.

4. Not respecting the declaration deadlines

Moroccan taxation imposes strict deadlines:

• 30 days to declare a land profit after a sale,
• January 31 to report the completion of work or the vacancy of a dwelling,
• March 1 for the annual income tax return.
Any delay results in significant penalties and increases.

5. Poorly managing the joint ownership between heirs

In the event of a succession, each co-owner must file their own declaration and pay the tax corresponding to their share. Forgetting this rule creates disputes and often blocks the sale or regularization of the property.

These errors may seem minor at first glance, but they can cost several thousand dirhams in adjustments. It is better to anticipate and systematically check your obligations with the General Directorate of Taxes (DGI).