What taxes do I pay as a foreign property owner?

Three kinds of tax to be aware of, depending on how you use the property.

Annual holding taxes. Every property owner in Morocco pays the taxe d'habitation (residence tax) and the taxe de services communaux (municipal services tax) annually. These are calculated on the rateable value of the property — typically a few thousand dirhams total for a medina riad. The taxes are low by European standards and are collected by the commune. Foreign owners pay the same rates as Moroccan owners.

Capital gains tax when you sell (plus-value). When you sell a Moroccan property for more than you paid for it, the gain is subject to an income tax called the plus-value immobilière. Rates in 2026 are 20% to 30% depending on how long you held the property, with allowances that reduce the effective rate after five years of ownership and exemptions available for primary residences after six years. The notaire handling your sale withholds and remits this tax at closing.

Rental income tax. If you rent your property, the rental income is subject to Moroccan income tax. For short-term rentals (Airbnb, Booking.com-style), the declaration is annual and the rate depends on your total annual rental revenue. For long-term rentals, a simpler declaration applies. Most foreign owners work with a local accountant or property manager who handles these filings; the cost is modest and the consequences of missing filings are not.

What you do not pay. There is no annual wealth tax, no foreign-owner surcharge, no recurring capital tax. The Moroccan tax system is relatively straightforward for a foreign property owner. The notaire and a competent local accountant handle nearly all of it on your behalf.