Retirement in Morocco: how Moroccans living abroad (MREs) can reduce their taxes by 80%

The net taxable income is determined after applying a 70% deduction on the annual gross tranche not exceeding 168,000 dirhams, and 40% for the surplus. Beneficiaries also benefit from an 80% reduction in the amount of tax due on the transferred pension. The granting of this reduction is subject to the final transfer of the pension to Morocco in non-convertible dirhams.

Administratively, retirees must file an electronic declaration of their global income before March 1st of each year. The tax is then calculated according to a progressive scale whose rates range from 0% to 37% for income above 180,000 dirhams.

To justify these rights, two documents must be attached to the declaration: a certificate of payment of the pensions issued by the debtor and a bank certificate indicating the amount in foreign currency received and its countervalue in dirhams on the day of the transfer. These measures are part of the tax provisions applicable in 2025, including new options for rental income as of January of the same year.