Taxation of rental income in Morocco: what an owner should know
By Robin Moreau
Must rental income be declared in Morocco?
Yes, always. Whether a property is let unfurnished or furnished, the rent received is taxable income to be declared every year to the tax authorities.
Income from letting a property is, by default, classified as property income under the Code Général des Impôts. The owner — resident or non-resident — remains required to declare it, regardless of the amount received.
This declaration is separate from any withholding applied during the year: it covers the gross amount of rent actually received.
How is tax calculated on standard property income?
The base regime applies a flat 40% deduction on gross rent before the income tax scale is applied.
This 40% deduction is meant to cover property-related costs on a flat-rate basis — upkeep, management, vacancy — without needing to justify each expense. It is the central mechanism of Morocco's property income regime.
The tax rate applied to the remainder then depends on the regime chosen and the amount of annual rent. This calculation varies from one owner to another; it should be worked out case by case, which we recommend doing with a chartered accountant.
Does furnished tourist rental follow the same rules?
Not necessarily. Regular furnished rental with associated services (welcome, housekeeping, linen) can be reclassified as professional income rather than simple property income.
The distinction between property income and professional income rests on the nature of the activity: an occasional furnished let generally remains property income, while a repeated activity with hotel-type services can fall under a different regime, with its own reporting obligations.
This is a point we consistently flag to our partner owners: the exact tax classification depends on the volume of activity and the services offered, and is worth confirming with a professional from the start rather than discovering it after the fact.
What does the 2026 finance law change?
A 5% withholding tax has applied since 1 July 2026 to certain professional property rents — a measure that, based on analyses available to date, does not apply to Maison Minara-style furnished tourist rental.
The 2026 finance law introduced a 5% withholding tax on property rental income paid in a professional context — typically commercial leases or long-term leases to businesses. Tax analyses available to date explicitly distinguish this measure from furnished tourist rental, which remains subject to its own regime.
This reform mainly illustrates a broader point: Moroccan property taxation is moving fast. This is precisely why we provide every owner with a detailed monthly statement — revenue, expenses, occupancy rate — the groundwork your accountant will use to prepare your return with confidence.
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