Morocco Lures Retirees with 80% Tax Cut on Foreign Pensions

Moroccans residing abroad who choose to settle in Morocco upon retirement can benefit from a significant tax advantage on their pension from a foreign source. The 2025 MRE Tax Guide specifies that two tax reductions are possible:

A flat-rate deduction on the taxable gross amount of the pension:
• 70% on the portion not exceeding 168,000 dirhams per year,
• 40% on the excess portion.

An 80% reduction in the amount of tax due, provided that the pension is transferred to Morocco, permanently, in non-convertible dirhams.

The essential condition: the permanent transfer in non-convertible dirhams

This point is crucial: the 80% reduction can only be granted if the pension is transferred to Morocco permanently, in a currency converted into non-convertible dirhams.

This is the only condition required by the tax administration for the retiree to benefit from this exceptional reduction.

Annual declaration is mandatory

Even in the presence of a pension transferred in accordance with the rules, the retiree is required to:
• File the declaration of his global income, electronically,
• And pay the income tax due, according to the progressive scale in force.

This declaration must be made before March 1st of each year for the income of the previous year.

The Guide indicates that to benefit from the 80% reduction, the taxpayer must attach to his declaration:
• A certificate of payment of pensions, issued by the pension provider (pension fund or other paying organization), or any other equivalent document,
• A bank certificate indicating:
— > the amount in foreign currency received for the pensioner’s account,
— > and the countervalue in dirhams on the day of the transfer,

this certificate must be issued by the credit institution or the organization in charge of the payment.

In summary, therefore:

The 80% reduction on the tax due on foreign pensions is subject to the permanent transfer of the pension in non-convertible dirhams.
In case of non-compliance with this condition, the reduction is lost.
The annual declaration of income remains mandatory, even in case of a granted reduction.