Moroccan Expats: 5 Hidden Tax Benefits That Could Save You Thousands

1. A 75% deduction on the housing tax

MREs benefit from a 75% deduction on the rental value of their main residence in Morocco, even if it is occupied free of charge by the spouse, children or parents.

2. An 80% reduction in tax on foreign pensions transferred

Retired MREs who transfer their pension to Morocco in non-convertible dirhams obtain an 80% reduction in the tax due, in addition to a flat-rate deduction on the gross amount (70% up to 168,000 DH, then 40% beyond).

3. A 5-year exemption from housing tax for new construction

New constructions used as the main residence benefit from a total exemption from housing tax for 5 years, starting from the year following the completion of the work.

4. A reduced rate of 1.5% for certain donations

Donations between parents and children, between spouses, between brothers and sisters, as well as those made within the framework of the kafala, benefit from a reduced registration fee of 1.5%, instead of the normal rate of 4% or 5%.

5. An exemption from social contribution for modest housing

Main residence constructions with an area of less than or equal to 300 m² are exempt from the social solidarity contribution. This levy only concerns large areas.

Deductions, exemptions and reduced rates offer MREs major tax opportunities. Too often ignored, these mechanisms nevertheless represent a real lever for savings.