News brief · Cost of living
Morocco: Marrakech, an affordable haven for French-speaking retirees
Marrakech attracts French-speaking retirees with its cost of living and proximity. Moroccan taxation, however, is not light: it is the pension regime and the tax treaty with France that make the project worthwhile.
By Editorial team · on July 13, 2026
What Morocco taxes
The Moroccan income tax scale starts at 0%1 on its first bracket and peaks at 37%2 at its top marginal rate.
This top rate is comparable to that of many European states. Contrary to a widespread belief, Morocco is therefore not, under ordinary law, a low-tax destination.
Dividends bear a withholding tax of 12.5%3 for distributions from 1 January 2025, compared with 15%4 historically, and 11.25%5 for later distributions.
Corporate income tax ranges from 20%6 under the standard regime to 35%7 above a profit threshold.
Tax residency is acquired in particular through a continuous or non-continuous presence of more than 183 days8 over a period of three hundred and sixty-five days.
What makes it worthwhile for a retiree
Morocco applies a large allowance to foreign-source pensions and, subject to the funds being permanently transferred into non-convertible dirhams, a substantial tax reduction.
It is this mechanism, not the tax scale, that makes the country attractive to a French retiree. It does, however, require actually transferring the pension to Morocco and converting it, which ties the funds up in the local economy.
We do not publish the rate of the pension allowance, the rate of the tax reduction linked to the transfer, or the exact conditions of that transfer: they do not appear in the extracts we were able to verify. They must be established with the Moroccan Direction générale des impôts.
The France–Morocco tax treaty also determines how pensions are treated. Public-sector pensions generally follow a different rule from private-sector pensions, and may remain taxable in France.
This point is decisive and often discovered after settling. A former civil servant and a former private-sector employee are not in the same situation, even when they settle in the same city.
Marrakech in practice
The city's appeal lies in a rare combination: a cost of living far below French levels, a three-hour direct flight, widespread use of French and a dry climate.
Foreigners are free to buy built property, with a restriction on agricultural land. The market is divided between the medina, the new town and the peripheral villa areas, each with its own pricing logic.
Two points call for particular vigilance. The state of title deeds in the medina, where old land tenure regimes coexist and checks are essential. And the real cost of renovating a riad, which is systematically underestimated.
We do not publish Moroccan registration duties, housing tax, the taxation of rental income or a typical monthly budget: they do not appear in our verified sources.
The dirham is also not freely convertible, and transfers of funds abroad are subject to exchange control regulations. A foreign resident must have their foreign-currency inflows registered on entry; otherwise, later repatriating the proceeds of a sale becomes difficult.
What to do
- Have your pension classified under the France–Morocco tax treaty: public or private, the treatment differs.
- Check the conditions for transferring the pension into dirhams and the consequences for access to the funds.
- Obtain the Moroccan residence card and count your days against the 183 days8 threshold.
- For a purchase in the medina, have the property's land tenure status established by a Moroccan notary.
- Handle the departure from France according to its own criteria.
Finally, healthcare is an item to plan for: Marrakech's private sector is adequate for routine care, but major procedures frequently mean going to Casablanca or France. International cover is the norm among foreign residents, and its cost rises with age.
Please note
Sources and verification dates
- 1.
Morocco: rate of the first bracket of the income tax scale : 0%
« Article 73.- Taux de l'impôt — I.- Barème de calcul — Le barème de calcul de l'impôt sur le revenu est fixé comme suit : la tranche du revenu allant jusqu'à 40 000 dirhams est exonérée ; 10% pour la tranche du revenu allant de 40.001 à 60.000 dirhams ; 20% […] 60.001 à 80.000 ; 30% […] 80.001 à 100.000 ; 34% […] 100.001 à 180.000 ; 37% pour le surplus. — Code Général des Impôts 2026, art. 73-I (loi de finances n° 60-24 pour 2025). »
tax.gov.maVerified on Nov 2, 2026Verified source
- 2.
Morocco: top marginal income tax rate : 37%
« Article 73.- Taux de l'impôt — I.- Barème de calcul […] 34% pour la tranche du revenu allant de 100.001 à 180.000 dirhams ; 37% pour le surplus. — Code Général des Impôts 2026, art. 73-I. »
tax.gov.maVerified on Nov 2, 2026Verified source
- 3.
Morocco: withholding tax on dividends distributed from 1 January 2025 : 12.5%
« Article 247-XXXVII-C — Le taux de l'impôt retenu à la source s'applique aux produits des actions, parts sociales et revenus assimilés distribués comme suit : 12,50% pour les montants distribués à compter du 1er janvier 2025 ; 11,25% pour les montants distribués à compter du 1er janvier 2026 ; 10% pour les montants distribués à compter du 1er janvier 2027. — Code Général des Impôts 2026, art. 247-XXXVII-C (taux cible de 10 %, art. 73-II-B). »
tax.gov.maHistorical value, applicable until January 1, 2026
- 4.
Morocco: historical rate of withholding tax on income from shares : 15%
« Article 247-XXXVII-C — […] 12,50% pour les montants distribués à compter du 1er janvier 2025 ; 11,25% pour les montants distribués à compter du 1er janvier 2026 ; 10% pour les montants distribués à compter du 1er janvier 2027. — Code Général des Impôts 2026. »
tax.gov.maHistorical value, applicable until January 1, 2026
- 5.
Morocco: withholding tax on dividends from subsequent distributions : 11.25%
« Article 247-XXXVII-C — Le taux de l'impôt retenu à la source s'applique aux produits des actions, parts sociales et revenus assimilés distribués comme suit : 12,50% pour les montants distribués à compter du 1er janvier 2025 ; 11,25% pour les montants distribués à compter du 1er janvier 2026 ; 10% pour les montants distribués à compter du 1er janvier 2027. — Code Général des Impôts 2026, art. 247-XXXVII-C (taux cible de 10 %, art. 73-II-B). »
- 6.
Morocco: standard corporate income tax rate : 20%
« Article 19.- Taux d’imposition — I.- Taux normal de l’impôt — Sous réserve des dispositions du paragraphe XXXVII-A de l’article 247 ci-dessous, le taux de l’impôt sur les sociétés est fixé à : A.- 20% ; B.- 35%, en ce qui concerne les sociétés dont le montant du bénéfice net est égal ou supérieur à cent millions (100 000 000) dirhams […] ; C.- 40%, en ce qui concerne les établissements de crédit et organismes assimilés […] — Code général des impôts 2026, art. 19-I (art. 6 de la loi de finances n° 50-22 pour 2023). »
tax.gov.maVerified on Oct 21, 2026Verified source
- 7.
Morocco: corporate income tax rate above the profit threshold : 35%
« Article 19.- Taux d'imposition — I.- […] le taux de l'impôt sur les sociétés est fixé à : A.- 20% ; B.- 35%, en ce qui concerne les sociétés dont le montant du bénéfice net est égal ou supérieur à cent millions (100 000 000) dirhams, à l'exclusion : 1) des sociétés de services ayant le statut « Casablanca Finance City » […] — Code Général des Impôts 2026, art. 19-I-B. »
tax.gov.maVerified on Nov 2, 2026Verified source
- 8.
Morocco: presence over three hundred and sixty-five days establishing tax domicile : 183 days
« Article 23 — II.- Au sens du présent code, une personne physique a son domicile fiscal au Maroc lorsqu'elle a au Maroc son foyer d'habitation permanent, le centre de ses intérêts économiques ou lorsque la durée continue ou discontinue de ses séjours au Maroc dépasse 183 jours pour toute période de 365 jours. — Code Général des Impôts, édition 2026 (Direction Générale des Impôts), art. 23-II. »
tax.gov.maVerified on Nov 2, 2026Verified source