Moving to Morocco? France may still tax your income and property

Moving to another country is not enough to change your tax residence. The tax treaty between France and Morocco first looks at where your permanent home is. If a taxpayer has a home in both countries, the center of their professional activities, followed by the length of their stays, helps determine their tax domicile.

A case involving €28 million in capital gains showed how important these criteria are. A taxpayer claimed to live in Morocco, but investigators established that he had spent at least 170 days in France, compared with just 15 in Morocco. The courts ultimately confirmed that he was a French tax resident.

On Bladi.net : France taxes Morocco residency: fiscal obligations explained

For those who do become non-residents, the formalities change in the year they move. The following spring, form 2042 is used to declare income received from January 1 up to the departure date. Form 2042-NR covers French-source income that remains taxable in France through December 31.

The Directorate General of Public Finances also asks taxpayers to report their new address abroad. If they retain income taxable in France, their file will then be handled by the tax office for non-residents.

Rental income in France, pension in Morocco

A home kept in France continues to create tax obligations. Rent from an apartment in Lyon or Marseille remains taxable in France, even if its owner now lives in Morocco. Property tax is still due, while a home kept as a second residence may also be subject to residence tax.

The real estate wealth tax (IFI) may also apply when taxable net real estate assets located in France exceed 1.3 million euros.

French income subject to non-resident tax is generally taxed under a scale with minimum rates of 20% and 30%, depending on the brackets. However, taxpayers can request the average rate, calculated on their total worldwide income, if it is more favorable. That rate then applies only to income taxable in France.

On Bladi.net : France Rental Income MRE Tax Obligations Non-Resident

Pensions are treated differently under the French-Moroccan tax treaty. Article 17 reserves the right to tax pensions and life annuities to the country where the beneficiary is tax-resident. A French pension paid to someone who is tax-resident in Morocco is therefore taxable in the Kingdom, as confirmed by the Official Bulletin of Public Finances.

In Morocco, Article 23 of the General Tax Code 2026 subjects tax residents to tax on their Moroccan and foreign income, subject to tax treaties.

Recipients of foreign pensions may nevertheless benefit from a significant tax break. Article 76 provides for an 80% reduction in the tax due on the portion of their pension permanently transferred to Morocco in non-convertible dirhams, provided they meet the reporting and documentation requirements.

Retirees moving to Morocco must also give their pension fund their new address and provide the necessary supporting documents to have the tax treaty applied.