Morocco Tax Rates
Morocco operates a progressive personal income tax system with rates up to 38%. The Direction Générale des Impôts (DGI) administers the tax system, which features a 31% standard corporate tax rate (with varying rates by profit level), 20% VAT, and capital gains taxation. Morocco has undertaken significant reforms to attract foreign investment, including free zone incentives and a broad treaty network.
Top Income Tax Rate
38%
Corporate Tax Rate
20%
VAT / Sales Tax
20%
Capital Gains Tax
20%
Detailed Tax Information
Income Tax Brackets
Morocco levies progressive personal income tax on residents' worldwide income. Rates range from 0% on income up to MAD 30,000 to 38% on income exceeding MAD 180,000. Employment income is subject to PAYE withholding. Non-residents are taxed at 20% on Moroccan-sourced income unless a treaty provides otherwise. Various deductions are available for social security contributions, mortgage interest, and pension savings.
| Income Range | Tax Rate |
|---|---|
| MAD 0 – MAD 30K | 0% |
| MAD 30K – MAD 50K | 10% |
| MAD 50K – MAD 60K | 20% |
| MAD 60K – MAD 80K | 30% |
| MAD 80K – MAD 180K | 34% |
| MAD 180K+ | 38% |
Corporate Tax
Morocco's 2026 corporate tax reform established a unified standard rate of 20% for most companies, with 35% applying to companies with net taxable income of MAD 100 million or more. Credit institutions, banks, and insurance companies face a 40% rate. Companies in Casablanca Finance City enjoy a 0% rate for five years then 15%. Free zone companies pay 0% for five years then 15%. Export companies also benefit from reduced rates.
Standard Rate
20%
Small Business Rate
20%
Capital Gains Tax
Capital gains on real property are taxed at 20% with a minimum tax of 3% of the sale price. Gains on listed securities are taxed at 15%. Unlisted securities are taxed at 20%. A primary residence exemption applies for properties held more than 6 years with a sale price below MAD 4 million. Rollover relief is available for reinvestment in another primary residence.
Rate
20%
VAT / Sales Tax
Morocco's VAT is levied at a standard rate of 20% with reduced rates of 14%, 10%, and 7% for specific goods and services. Basic foodstuffs like bread, milk, and sugar are exempt. Financial services, education, and healthcare are also exempt. Registration is mandatory for businesses with annual turnover exceeding MAD 500,000.
Standard Rate
20%
Cryptocurrency Tax
Morocco does not have specific cryptocurrency tax legislation. Bank Al-Maghrib (the central bank) issued a warning against cryptocurrency use in 2017, but no formal ban exists. General tax principles would apply to gains from crypto transactions. Morocco is studying regulatory frameworks for digital assets.
Tax Treaties
Morocco has an extensive network of approximately 55 double taxation agreements. The treaty network reflects Morocco's strong economic ties with Europe and the Middle East. Treaties typically reduce withholding rates on dividends, interest, and royalties.
Treaty Network
55
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Morocco
See how much you could save by moving here from your current country.
+$823
Tax in United States
$24K
24.4% effective
Tax in Morocco
$24K
23.5% effective
You Save
3.4%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
