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

1. A 75% deduction on the housing tax

If you maintain a home in Morocco considered as your main residence, you automatically benefit from a 75% deduction on the rental value used as the basis for calculating the housing tax. This benefit also applies if the property is occupied free of charge by your spouse, children or parents.

2. An 80% reduction in tax on foreign pensions

Retired MREs who choose to transfer their pension to Morocco in non-convertible dirhams benefit from an 80% reduction in the tax due. In addition, there is a flat-rate deduction on the gross amount: 70% up to 168,000 dirhams per year, then 40% beyond that.

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

If you build a house intended to be your main residence, you are exempt from housing tax for 5 years starting from the year following the completion of the work. A welcome boost for those investing in real estate in the country.

4. A reduced rate of 1.5% for family donations

Donations made in direct line (parents, children), between spouses, between siblings, or within the framework of kafala, benefit from a reduced registration rate of only 1.5%. A mechanism that facilitates the transfer of assets without heavy taxation.

5. An exemption from the social contribution for modest constructions

If you build a main residence not exceeding 300 m², you are exempt from the social solidarity contribution. This levy only applies to large housing, which represents a significant saving for the majority of MREs.

Between deductions, exemptions and reduced rates, the Moroccan tax system has some pleasant surprises in store for MREs. However, you need to be aware of these provisions and take the necessary steps to fully benefit from them.