Morocco Lures Foreign Retirees with 80% Tax Break on Overseas Pensions

The taxpayer first benefits from a flat-rate deduction on the taxable gross amount of their pension. Two rates are provided. The first is 70% for the annual portion of the pension that does not exceed 168,000 dirhams. The second is 40% for the portion that exceeds this amount. These deductions are applied before calculating the income tax, according to the progressive scale established.

Beyond this deduction, a reduction equal to 80% of the amount of tax due can be applied, provided that the pension is transferred to Morocco on a permanent basis in non-convertible dirhams. The benefit of this reduction is subject to this effective transfer.

The procedure requires subscribing, by electronic means, to an annual declaration of global income, accompanied by the payment of the corresponding tax. This declaration must be filed before March 1st of the year following the year in which the pension was received.

For the reduction to be granted, the declaration must be accompanied by two documents. The first is a certificate of pension payments, issued by the debtor or any other document serving this purpose. The second is a bank certificate issued by the credit institution or the organization involved in the payment of the pension. This document must specify the amount received in foreign currency and its countervalue in dirhams on the day of the transfer.

These conditions apply only to pensions from foreign sources permanently transferred. The guide does not provide for additional exemptions or special tax treatment for other types of income, including in the case of dual residence or intermittent stay.

The tax administration makes its SIMPL portal (www.tax.gov.ma) available for electronic declaration and tax payment. No other mode of declaration or transmission is specified in the official text.