Rental taxation in Morocco is complex and varies depending on the nature of the property rented, its use and the status of the lessor. Here is an overview of the main taxes and tax obligations applicable to rental income: 1. Income Tax (IR) • Property income: Rents received from the rental of unfurnished real estate for residential use are considered property income. They are subject to IR with a 40% reduction on the gross amount of rents received. In the event that the lessee is a professional under the RNR or RNS regime or subject to IS, a non-liberatory withholding tax of 10 or 15% is mandatory pending regularization during the overall income declaration before March 1 of each year, this withholding tax will become liberatory on option at the rate of 20% in 2025. • Professional income: Rents from the rental of furnished properties, whether for residential or professional use, are considered professional income (unless the owner is an individual who does not rent out furnished apartments on a regular basis). They are subject to professional IR according to the progressive scale. 2. Value Added Tax (VAT) • Furnished rentals for residential use: In principle, these rentals are subject to VAT, unless the lessor is a non-professional individual, or a professional whose turnover does not exceed 500,000 dh. • Unfurnished rentals for professional use: These rentals are generally subject to VAT at the rate of 20%, if the lessor is a professional who has exercised a right to deduction or has acquired the property exempt from VAT. • Furnished rentals for professional use: These rentals are generally subject to VAT at the rate of 20%. 3. Municipal Services Tax (TSC) The TSC is a local tax applicable to built properties and constructions of all types. It is due annually by the owner or usufructuary of the property. • Taxable base: The TSC is calculated on the annual rental value of the property, determined by the tax authorities. • Rate: • 10.5% for properties located within the perimeter of urban municipalities, delimited centers, summer, winter and thermal resorts. • 6.5% for properties located in the peripheral areas of urban municipalities. It is important to note that the TSC is due regardless of the use of the property (residential or professional) and is the responsibility of the owner. 4. Professional Tax (TP) The TP is due by any natural or legal person exercising a professional activity in Morocco. In the context of the rental of real estate, the TP applies if the lessor is considered to be exercising a professional rental activity. • Taxable base: The TP is calculated on the annual rental value of the goods used for the exercise of the professional activity. • Rate: The rates vary according to the nature of the activity and the location of the property. It is essential to determine whether the rental activity is exercised on a professional basis or not, as this influences the liability to the TP. 5. Reporting obligations • Income declaration: Rental income must be declared annually to the tax authorities, whether as property or professional income. • Payment of local taxes: The TSC and TP must be paid according to the terms and deadlines set by the local authorities. In conclusion, the taxation of rentals in Morocco requires particular attention to the various applicable taxes and the associated reporting obligations. It is recommended to consult a tax expert to ensure compliance with the regulations in force and optimize the tax management of rental income. ملخص الضرائب لسنة 2025 تختلف الضرائب المفروضة على الدخل العقاري في المغرب بناءً على وضع المؤجر (المالك)، وضع المستأجر، ونوع العقار (فارغ، مفروش، تجاري أو مهني)