Morocco Rental Income Tax Guide

the Morocco rental income taxation for 2026. The guide covers: the rental income (revenus fonciers) subject to the IR (Impôt sur le Revenu) at the progressive rates of 0-38%; the 40% standard deduction for the expenses (the "abattement forfaitaire de 40%"); the TP (Taxe d'habitation — the Habitation Tax) and the TNB (Taxe des services communaux — the Municipal Services Tax) levied on the property owners; the non-resident WHT at 20-25% on the rental payments; and the rented property registration requirements.

Rental Income — IR (IIT) 0-38% Progressive

Classification — revenus fonciers: The rental income from the real estate property (the "revenus fonciers" — the "property income") is subject to the Impôt sur le Revenu (IR) at the progressive rates of 0-38%. The rental income is classified as the "revenus fonciers" separate from the employment income and the business income.
IR brackets for 2026: (a) 0 to MAD 30,000 — 0%, (b) MAD 30,001 to MAD 50,000 — 10%, (c) MAD 50,001 to MAD 60,000 — 20%, (d) MAD 60,001 to MAD 80,000 — 30%, (e) MAD 80,001 to MAD 120,000 — 34%, (f) MAD 120,001 to MAD 180,000 — 38%, (g) above MAD 180,000 — 38%.
Aggregation: The rental income is aggregated with the other income (the employment, the business, the investment) for the calculation of the total taxable income and the application of the progressive IR scale.

40% Standard Deduction for Expenses

Flat 40% deduction: The landlord is entitled to the standard deduction of 40% (the "abattement forfaitaire de 40%" — the "flat-rate deduction of 40%") from the gross rental income to cover the expenses related to the property — the maintenance, the repairs, the insurance, the property management fees, and the depreciation.
No actual expenses election: The 40% standard deduction is mandatory for the individual landlords — the actual expenses cannot be claimed instead of the flat deduction. The net taxable rental income = the gross rental income × 60%.
Example: If the landlord receives the annual rental income of MAD 120,000, the net taxable rental income is MAD 120,000 × 60% = MAD 72,000. The IR is calculated on MAD 72,000 (plus the other income).

TP — Taxe d'Habitation (Habitation Tax)

TP — the habitation tax: The TP (Taxe d'habitation — the "Habitation Tax") is the local tax imposed on the property owner (or the tenant, depending on the agreement) for the residential properties. The tax is calculated based on the rental value of the property (the "valeur locative") determined by the municipality.
Who pays: The TP is the obligation of the property owner, but the lease agreement may provide for the reimbursement by the tenant. The TP is paid annually to the local tax authority.
Rate: The TP rate varies by the municipality — typically between 5% and 15% of the cadastral rental value.

TNB — Taxe des Services Communaux (Municipal Services Tax)

TNB — the municipal services tax: The TNB (Taxe des services communaux — the "Municipal Services Tax") is the local tax imposed on the properties benefiting from the municipal services — the waste collection, the street lighting, the road maintenance, and the sanitation.
Rate and calculation: The TNB is calculated as the percentage (typically 10-15%) of the rental value of the property. The tax is paid by the property owner annually.
Combined local taxes: The TP + the TNB constitute the total local property tax burden — approximately 15-30% of the cadastral rental value, depending on the municipality.

Non-Resident WHT — 20-25% on Rent

Non-resident withholding: If the landlord is the non-resident (the individual or the entity), the rental income is subject to the withholding tax (WHT) at the rate of 20-25% of the gross rental amount. The tenant must withhold the tax and remit it to the DGI.
DTA reduction: The non-resident may claim the reduced WHT rate under the applicable DTA. The typical DTA rate for the rental income is 10-20%.
Filing obligation: The non-resident landlord (or the tenant as the withholding agent) must file the monthly withholding declaration and the annual summary with the DGI.

Rented Property Registration Requirements

Registration — contrat de location: The rental agreement (the "contrat de location" — the "lease agreement") must be registered with the local tax office (the "Inspection des Impôts" — the "Tax Inspectorate") within 30 days of the signing. The registration is done by filing the "déclaration de location" (the "rental declaration") on the DIR portal.
Cadastral registration: The property must be registered in the cadastre (the "registre cadastral" — the "cadastral register") maintained by the ANCFCC (Agence Nationale de la Conservation Foncière, du Cadastre et de la Cartographie — the National Agency for the Land Registration, the Cadastre and the Mapping).
Penalties: The failure to register the rental agreement may result in: (a) the penalty of MAD 500 to MAD 2,000 for the late registration, (b) the denial of the 40% standard deduction for the unregistered agreements, (c) the potential reassessment by the DGI.