Definition
What this covers
Rental income means the proceeds derived from letting built and unbuilt property located in Morocco, as well as constructions of any kind art. 61 CGI. It is one of the categories of income making up global income liable to income tax.
Gross rental income consists of the total gross amount of the rents, increased by expenses normally falling on the landlord but borne by the tenant, and reduced by charges borne by the landlord on the tenant's behalf art. 64-I CGI. For the property covered by article 61 (I-A-1°, B, C and D), net taxable income is obtained by applying a relief of 40 % to that gross amount art. 64-II CGI.
This income is not subject to the progressive scale : it falls under specific rates art. 73-II CGI. Depending on the status of the payer, the tax is either withheld at source when the rent is paid or paid over by the landlord themselves. Confusion between those two situations is the most common source of error among individuals.
Scope
Who is affected
- Individuals with their tax domicile in Morocco who let a property, whether for residential or professional use.
- Non-resident persons, including Moroccans living abroad, who own property located in Morocco: they remain taxable on that Moroccan-source income.
- Co-owners in undivided ownership, each to the extent of their share.
- Owners whose property is occupied free of charge by a third party, whose position calls for specific review.
Tax domicile in Morocco follows from three alternative tests: a permanent home, the centre of economic interests, or a stay of more than 183 days over any 365-day period art. 23-II CGI. That last test is assessed over a rolling period, not by calendar year — a decisive nuance for those splitting their time between Morocco and abroad.
Applicable rules
Who withholds, at what rate, and who may opt
The starting point is not the landlord but the payer of the rent. Withholding at source falls only on public or private legal entities and on individuals whose professional income is determined under the actual net profit or simplified net profit regime art. 154 bis and 160 bis CGI. A private tenant renting for their own use never withholds.
Withholding at source
The withholding is made at a rate of 10 % where the gross amount of taxable rental income is less than 120,000 MAD, and 15 % where it reaches or exceeds that amount art. 73-II-B-5° and C-4°.
The payer is relieved of withholding at those rates where the gross annual taxable amount paid to a landlord does not exceed 40,000 MAD art. 160 bis. This is a relief from withholding for the payer, not an exemption : the income remains taxable.
No withholding
Where the tenant falls into none of the categories in article 154 bis, no withholding is made. The landlord files and pays the tax on their rental income themselves.
Nor do they have access to any option : the final rate is reserved for income subject to the withholding under article 160 bis.
The option for the 20 % final rate
The option is open only to taxpayers with rental income subject to the withholding at source provided for in article 160 bis art. 64-IV CGI. It applies to the gross taxable amount and substitutes for the 10 % or 15 % rates a final rate of 20 % art. 73-II-F-12°. Its benefit is therefore not a more favourable rate, but the discharging effect : the part of the rental income subject to that rate is relieved from the annual global income return art. 86-6°.
The option is requested from the tax administration by electronic means, against a receipt. It takes effect only from the month following delivery of a copy of the receipt to the payer, which must occur at least thirty days before the due date for payment of the rent for the month following the filing of the request. It is not irrevocable : it may be brought to an end by a request in the same form, the copy of the receipt having to be delivered to the payer at least fifteen days before the due date concerned art. 64-IV CGI.
Deadlines and limitation periods
The timeline
- On each payment
A payer required to withhold deducts the tax on each rent payment and pays it over to the Treasury on the landlord's behalf art. 160 bis. The landlord must be able to evidence the amounts withheld.
- Before 1 March
A payer required to withhold files its own return of the rental income paid, landlord by landlord, with the amount of the rents and the corresponding withholding art. 154 bis. The administration therefore already holds this information.
- Before 1 March
Filing by the landlord of the annual global income return for the previous year art. 82. Any tax due is paid at the same time.
- Until 31 December of the 4th year
Period during which the administration retains its power of audit and adjustment art. 232-I. For years never filed, that power is exercised beyond it, up to a limit of ten years art. 232-VIII-15°.
The relief from filing provided by law ceases to have effect as soon as the taxpayer considers themselves overtaxed or intends to claim deductions art. 86 CGI. In other words, anyone seeking to recover an overpayment must file, even if they were relieved from doing so.
Documents and supporting evidence
What the file contains
The file rests on the following elements :
- Evidence of ownership : land title, deed of acquisition or equivalent certificate, and where applicable the elements relating to undivided ownership.
- Contractual and collection records : leases, receipts and statements evidencing that the rents were actually received over the period.
- Evidence of the withholdings made : certificates from the tenant required to withhold, which condition the crediting of the withholding against the final tax.
- The landlord's tax details : tax identification number, position in respect of other categories of income, and documents relating to earlier years where a regularisation is in issue.
- The receipt for the option , where applicable, a copy of which must have been delivered to the payer art. 64-IV.
This list is indicative ; the exact composition of the file depends on the circumstances.
Points to watch
What can derail a file
- Believing that withholding at source settles the tax : the 10 % and 15 % rates are not among the rates in full discharge listed in the last paragraph of article 73, so the annual return remains due. Only the part subject to the 20 % final rate carries relief from it art. 86-6°.
- Confusing relief with exemption : the relief in article 160 bis concerns the payer's obligation. The landlord remains taxable and required to file.
- Believing the option is open to everyone : it is reserved for income subject to the withholding under article 160 bis. A landlord letting to a private individual has no access to it.
- Underestimating the time for the option to take effect : it takes effect only from the month following delivery of the receipt to the payer, that delivery being itself subject to thirty days' notice art. 64-IV.
- Neglecting earlier years : for years never filed, the administration may claim the tax beyond the ordinary period, up to a limit of ten years art. 232-VIII.
- Underestimating the surcharges : late filing carries a surcharge of 5 % within thirty days of the due date, rising to 15 % beyond that and to 20 % on an ex officio assessment, with a minimum of 500 MAD art. 184, late payment being penalised separately art. 208.
The withholding relief threshold is frequently presented as being set at 30,000 MAD. The General Tax Code in its 2026 edition relieves the payer where the gross annual taxable amount paid to a landlord does not exceed 40,000 MAD art. 160 bis — the threshold is therefore inclusive, and it is assessed landlord by landlord.
We take the file in hand
Aurion determines the regime applicable to your position, assembles and checks the file, files the return with the relevant administration and follows the file through to its conclusion. We deal with the administration's further requests and with blocked situations, including for landlords resident abroad.
Have my position reviewed- General Tax Code, 2026 edition — art. 23-II, 61-I, 64 (I, II and IV), 73-II (B-5°, C-4° and F-12°), 82, 86 (6° and opening words), 154 bis, 160 bis, 184, 208, 232 (I and VIII-15°), 235
- Finance Act No. 80-18 for the 2019 budget year — 40 % relief, 10 % and 15 % rates, withholding at source under articles 154 bis and 160 bis
- Finance Act No. 60-24 for the 2025 budget year — option for the final rate under article 64-IV and relief from filing under article 86-6°
- Finance Act No. 50-22 for the 2023 budget year — extension to individuals under the RNR and RNS regimes
Page current as at 20 August 2026. The amounts and time limits cited are those of the General Tax Code in its 2026 edition.
- Directorate General of Taxes portal DGI · Official entry point to the DGI and its online services.
- SIMPL-IR for individuals DGI · Online filing and payment of income tax for individuals.
- SIMPL — Tax account DGI · Log in to the tax account and pay tax assessments online.
Institutional profiles: DGI · Institutional directory
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