Morocco Inheritance & Gift Tax Guide 2026

Overview — No Inheritance Tax in Morocco

Morocco abolished inheritance tax (droits de succession) effective 2021 as part of a broader tax reform under the Finance Law. Before abolition, inheritance tax rates ranged from 5% (for direct descendants) to 25% (for non-relatives) with a tax-free allowance of MAD 100,000. The government determined that the tax yielded relatively little revenue (approximately MAD 200 million per year) while imposing significant administrative costs on families. Today, wealth can be transferred at death entirely free of tax.

Inheritance — No Tax

Inheritances in Morocco are not subject to any tax. Key points:

• No inheritance tax (droits de succession) on any assets — cash, shares, real estate, business interests
• No estate duty on the deceased's estate
• No wealth transfer tax of any kind on inheritance
• Beneficiaries do not report inherited assets as income for IR purposes
• Inherited assets retain the original cost basis for future capital gains calculations

The abolition applies regardless of the relationship between the deceased and the beneficiary — spouse, children, siblings, distant relatives, and unrelated beneficiaries all receive inheritances tax-free. This makes Morocco one of the most tax-friendly jurisdictions in the MENA region for estate planning.

Gifts — No Tax on Movable Assets

Gifts of movable assets (cash, shares, vehicles, jewellery) are not subject to any gift tax in Morocco. Key rules:

• Gifts between individuals are not taxable to the recipient (they are not considered income)
• Gifts are not deductible for the donor (no charitable deduction for individuals)
• There is no annual limit or lifetime exemption — gifts of any size are tax-free
• Business gifts may be subject to scrutiny if they appear to be hidden compensation

Gifts of Real Estate — Registration Duty (5%)

While gifts of real estate are not subject to gift tax, they are subject to the standard registration duty (Droit d'Enregistrement) of 5% of the property's value (the higher of the declared gift value and the cadastral value). This is the same duty that applies to any property transfer, whether by sale or gift. Additional costs:

• Conservation Foncière registration fee: 0.5%–1% of the property value
• Notary fees (typically 1%–2%)
• A gift deed (acte de donation) must be executed before a notary or adoul

The 5% duty is borne by the recipient (the donee). For gifts between spouses and direct descendants, certain municipalities may apply reduced rates.

Inheritance Procedures and Costs

While there is no inheritance tax, settling an estate involves certain procedural costs:

• Notarial fees: The notary charges fees for preparing the acte de notoriété (certificate of inheritance) and the acte de partage (division of assets)
• Court costs: If the estate goes through the succession court (tribunal), court fees apply
• Land registration: Transfer of real estate title requires registration with the Conservation Foncière (0.5%–1% of value)
• Publication costs: Legal announcements in newspapers may be required

These costs are typically 1%–3% of the estate value, far lower than the inheritance tax that existed before 2021.

Comparison with Regional Peers

Morocco's absence of inheritance tax is competitive in the region:

• Tunisia: Inheritance tax at progressive rates up to 35% (with exemptions for direct descendants)
• Algeria: No inheritance tax (abolished)
• Egypt: Inheritance tax of 6%–12% (certain exemptions)
• UAE: No inheritance tax
• Saudi Arabia: No inheritance tax

Morocco joins a growing number of countries in the MENA region that have abolished inheritance taxation.

FAQs

Do I need to file any return for an inheritance in Morocco?

There is no inheritance tax return to file. However, the estate must go through the legal succession process (procédure successorale), which involves the notary and possibly the court, to establish the legal heirs and divide the assets. The DGI is not involved in the inheritance process (except for real estate registration).

Are foreign inheritances taxed if I am a Moroccan resident?

No. If you inherit assets from abroad as a Moroccan resident, there is no Moroccan tax on the inheritance. However, you may need to report the inheritance for information purposes if required by the foreign jurisdiction.

Can I give my house to my child without paying 5% registration duty?

No, the 5% registration duty applies to any transfer of real estate, including gifts to family members. There is no exemption for intra-family gifts of property. However, the 5% duty is significantly lower than the combined tax burden in many other countries.

Disclaimer

This guide provides general information about Moroccan inheritance and gift taxation for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Moroccan tax advisor (conseil fiscal) or the DGI directly for advice specific to your situation. InvestmentKit does not provide tax advice.