Moving to Morocco to work quickly raises a tax question: in which country should income tax be paid? The answer depends first on tax residence, then on where the salary comes from and, where relevant, on the tax treaty between Morocco and the country of origin.
Being a tax resident in Morocco: three criteria
The General Tax Code (article 23) treats a person as having their tax domicile in Morocco when they meet one of the following criteria:
- they have their permanent home there;
- they have the centre of their economic interests there;
- they stay there more than 183 days in any 365-day period.
Two useful points:
- the 365-day period is rolling: it does not follow the calendar year, and successive stays add up;
- the tax authority looks at the criteria in order: permanent home first, then economic interests, and finally length of stay.
What residence changes
| Situation | Income taxable in Morocco |
|---|---|
| Tax resident | All their income, whether from Moroccan or foreign sources |
| Non-resident | Only their Moroccan-source income |
An expatriate resident in Morocco must therefore, in principle, also declare income still received abroad (rent, investments, pensions), subject to tax treaties.
Taxation of the salary
The salary of an expatriate working in Morocco is subject to income tax on the progressive scale, from 0% to 37%, like any employee’s. We explain the calculation in our article on income tax on salaries in 2026.
Two situations must be distinguished:
- the salary is paid by a company established in Morocco: the employer withholds the tax each month and pays it to the Treasury;
- the salary is paid from abroad by a company with no establishment in Morocco: there is no Moroccan employer to withhold the tax. The employee must declare and pay the tax themselves on time. This is one of the most frequent causes of reassessment.
The Casablanca Finance City regime
Employees of companies with Casablanca Finance City status may benefit from a flat 20% rate on their gross salary, for a limited period. The 2026 Finance Act clarified the rules for employees taking up their posts from 2026, with the option of the progressive scale when it is more favourable.
Avoiding double taxation
Morocco has signed tax treaties with many countries. They determine which State may tax each type of income, and have their own tie-breaker rules for a person treated as resident in both countries: permanent home, centre of vital interests, habitual abode, then nationality.
In practice, for a salary:
- it is in principle taxable in the State where the work is performed;
- exceptions exist for short assignments, where the employee is still paid by a foreign employer and their stay does not exceed a period set by the treaty.
Each treaty is worded differently: always read the one concluded with your country of origin before drawing conclusions. A certificate of tax residence is often needed to claim treaty benefits.
Foreign retirement pensions
A foreign retiree who is a Moroccan tax resident is taxed in Morocco on their pension, with two significant advantages:
- an allowance on the gross pension;
- an 80% tax reduction on the part of the pension permanently transferred to Morocco in non-convertible dirhams.
Good reflexes before moving
- Determine the date you will become resident and its consequences in your country of origin.
- Read the tax treaty that applies to your situation.
- Organise payroll: Moroccan employer, secondment or salary paid from abroad.
- Plan income transfers, which fall under foreign exchange regulations.
- Keep evidence of stays, housing and tax payments.
Ascensu supports companies welcoming foreign staff and investors settling in Morocco: payroll, returns and the interaction with tax treaties.
Official sources
This article is provided for general information, as at its publication date. It is not personalised advice: the rules change and every situation must be reviewed on its own facts.