Housing tax in Morocco

There are two taxes to be paid as an owner of an apartment, house, or villa in Morocco, excluding income tax on rental income if your property is rented:

1. Housing Tax: This is applicable if the property serves as your primary or secondary residence.
2. Communal Services Tax: This tax is owed by the owner in both scenarios described above.

But how are these property taxes calculated and what are the applied scales ? How can you properly establish your annual budget and avoid unpleasant surprises ? Here's everything you need to know as a property owner:

How is the Housing Tax calculated in Morocco ?

The housing tax is only due when the apartment is not rented out, because if it is, the income tax (see above) automatically applies. These two taxes cannot be combined.

The housing tax is calculated based on the annual rental value of the housing, whether it's for a primary or secondary residence. This rental value is determined directly by the General Directorate of Taxes according to the average rents calculated in the neighborhood for similar properties. The applied scale is as follows:

• Annual rental value between 0 and 5,000 DH = 0%
• Annual rental value between 5,001 DH and 20,000 DH = 10% then deduct an amount of 500 DH
• Annual rental value between 20,001 DH and 40,000 DH = 20% then deduct an amount of 2,500 DH
• Annual rental value over 40,000 DH = 30% then deduct an amount of 6,500 DH

How is the Communal Services Tax calculated in Morocco ?

The communal services tax is due in all cases, whether the property is rented out or not. Like the housing tax, it is calculated based on the annual rental value of the property with a fixed scale of 10.5% on the annual rental value of the property.

The housing tax is calculated based on the annual rental value of the properties, whether they are intended for a primary or secondary residence. This rental value is directly determined by the General Directorate of Taxes according to the average rents calculated in the neighborhood for similar properties. The applied rate is as follows:

• If the annual rental value is between 0 and 5,000 DH = 0%
• Annual rental value between 5,001 DH and 20,000 DH = 10% then deduct an amount of 500 DH
• Annual rental value between 20,001 DH and 40,000 DH = 20% then deduct an amount of 2,500 DH
• Annual rental value over 40,000 DH = 30% then deduct an amount of 6,500 DH

If it is your primary residence occupied by a spouse, ascendant, or descendant, you benefit from a 75% reduction on the rental value of the property before applying the rate.

Good to know : The housing tax can be paid:

• At the collection office indicated on the tax notice.
• At partner banks.
• Or online at the website www.tgr.gov.ma

Attention : The tax notice is generally received in March of each year, and non-payment of the tax is subject to a 10% penalty and a 5% surcharge for the first month of delay.

How is the communal services tax calculated in Morocco ?

The communal services tax is due in all cases, whether the property is rented out or not. Like the housing tax, it is calculated based on the annual rental value of the properties with a fixed rate of 10.5% on the annual rental value of the property.

Similarly to the housing tax, you benefit from a 75% reduction if it is a primary residence.

Salima Hamrini Editor and journalist specializing in real estate.

10 Oct 2023