News brief · Taxation
Morocco: retirees benefit from an allowance on pensions
Morocco applies an allowance to foreign-source pensions, together with a reduction linked to the transfer of funds. It is this mechanism, not the Moroccan tax scale, that makes the country attractive to a French retiree.
By Editorial team · on May 12, 2026
The tax scale, which is not the selling point
The Moroccan income tax scale starts at 0%1 on its first band and peaks at 37%2 at its top marginal rate.
This top rate is comparable to that of many European States. Under the ordinary rules, Morocco is therefore not a low-tax destination — contrary to a widespread belief.
Dividends bear a withholding tax of 12.5%3 on distributions from 1 January 2025, compared with 15%4 historically, and 11.25%5 on subsequent distributions.
Corporate tax ranges from 20%6 to 35%7 depending on profit.
Tax residency is acquired, among other ways, through continuous or non-continuous presence of more than 183 days8 over a period of three hundred and sixty-five days.
The mechanism specific to pensions
Moroccan law applies a substantial allowance to foreign-source pensions, followed by a substantial tax reduction, on condition that the funds are permanently transferred to Morocco in non-convertible dirhams.
It is the combination of these two mechanisms that sharply lowers a retiree's effective tax burden, and it has no equivalent in the country's ordinary rules.
We do not publish the rate of the allowance, the rate of the reduction or the exact conditions of the transfer: they do not appear in the extracts we were able to verify.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 transfer condition calls for particular attention. It requires bringing one's pension into Morocco and converting it into non-convertible dirhams, which ties the funds up in the local economy.
Yet the dirham is not freely convertible, and transfers abroad are subject to exchange control regulations. A foreign resident must have their foreign currency inflows registered on entry, failing which later repatriation becomes difficult.
It should be noted that this mechanism is not a recent attractiveness regime but a long-standing provision of Moroccan law, originally designed to encourage the return of Moroccans living abroad. Its availability to foreign retirees is a consequence of this, not its original purpose.
This origin explains its relative stability: it is not among the schemes targeted by international pressure, and it lacks the political visibility of a regime aimed at wealthy newcomers.
What the treaty decides
The France–Morocco tax treaty 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 the move. A former civil servant and a former private-sector employee are not in the same situation, even though they settle in the same city.
The classification of each pension must therefore be established before departure, pension by pension, including when the same retiree receives several of different origins.
A retiree whose pensions come mainly from the public scheme will find very little benefit in the Moroccan mechanism, and it is better to know this before moving.
What to do
- Have each pension classified under the France–Morocco tax treaty.
- Check the conditions of the transfer in dirhams and its consequences for the availability of the funds.
- Have your foreign currency inflows registered on entry, to preserve the possibility of repatriation.
- Obtain the residence card and count your days against the 183 days8 threshold.
- Handle the departure from France according to its own criteria.
Finally, the healthcare system is an item to plan for. The Moroccan private sector is adequate for routine care in the major cities, but major procedures frequently mean going to Casablanca or France. International cover is the norm among foreign residents, and its cost rises steeply with age — which must be costed over the duration of the project.
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