Morocco Rental Income Tax Deadline Looms for Airbnb and Booking Hosts

In accordance with Article 154 bis of the General Tax Code, owners of real estate and holders of a usufruct right are required to submit a detailed declaration of their properties, including the amounts of annual rents, before March 1 next. As for investors using the Booking and Airbnb real estate rental platforms, they must declare the income generated annually by this activity, which is subject to income tax.

In the declaration, the taxpayers concerned must provide their name and surname, the location and description of the rented property, the registration number in the municipal service register, the total amount of annual rents received, the total amount of annual rents paid, and the corresponding amount of tax withheld at source. Moroccan taxpayers are urged to regularize their situation, at the risk of periodic tax adjustments. Tax auditors are closely monitoring this file due to the notable increase in investments in the real estate rental sector, particularly in the summer season, and the significant income generated by this activity.

According to Law 80.14, relating to tourist establishments and other forms of tourist accommodation in Morocco, investors in real estate rentals via platforms like Booking and Airbnb must, under penalty of financial sanctions, obtain an operating permit for a period of 5 years and pay income tax, value added tax (VAT) at a rate of 10%. The tourist tax and the tourist promotion tax are collected from the tenants and paid to the tax administration.

"Complying with these obligations not only protects the hosts legally, but also helps to structure the sector and strengthen the trust between owners and tenants," said an accountant and tax advisor in a statement to Hespress. A real estate and tax expert will further specify that "the application of a 20% tax on net income, plus a 10.5% municipal levy, is a bold move to structure the sector, but it also poses challenges, particularly regarding the reaction of owners to these obligations."

Moreover, these new tax obligations could lead some owners to no longer declare their rental income, promoting the informal sector. "Tax evasion could intensify, making it even more difficult for the authorities to closely monitor rental income," notes the expert. These reforms continue to raise concerns among professionals who wonder about their effects on the real estate market in Morocco.