The 2026 Finance Law creates a 5% withholding tax on certain property rental income. It targets rents paid to legal entities subject to corporate income tax and to individuals under the RNR or RNS regimes where the property is held as a business asset.
Scope and tax base
The measure covers built properties, similar installations and undeveloped land, including land used for agricultural, commercial or industrial purposes. The municipal services tax re-invoiced to the tenant, and charges contractually borne by the tenant, form part of the tax base.
Rental income received privately by an individual remains subject to its own regime — non-final rates of 10% or 15%, or a final 20% rate by election. Rents paid to the State, local authorities, Habous, leasing companies and OPCIs are among those excluded from the new mechanism.
Timetable
The obligation begins on 1 July 2026 for public entities, banks, insurers and businesses whose turnover excluding VAT exceeds MAD 500 million. The thresholds fall to MAD 350 million in 2027 and MAD 200 million in 2028. For rents paid to an individual acting in a business capacity, legal entities and RNR/RNS professionals are concerned from 1 July 2026, with no turnover threshold.
The withholding must be paid over before the end of the following month. It is creditable against corporate or individual income tax, and any excess may give rise to a refund.
Sources
- Directorate General of Taxes — Circular note no. 737 on the tax measures of Finance Law no. 50-25 for the 2026 budget year, 2026-03-09.
- Directorate General of Taxes — Circular note no. 737 — full text (74 pages), 2026-02-27.
- Le Desk — 2026 Finance Law: all the tax measures explained by the DGI, 2026-02-27.
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This publication is provided for information purposes only and does not constitute personalised tax or legal advice.