MRE Retirees: basic pensions fully exempt from income tax in Morocco since January 2026
The 2026 Finance Law fully exempts basic retirement pensions (CNSS, CMR, RCAR) from income tax in Morocco. A measure that makes retiring in Morocco even more attractive for MRE.
What changes from 1 January 2026
Basic retirement pensions paid by CNSS, CMR and RCAR are now fully exempt from income tax in Morocco. This measure, introduced by the 2026 Finance Law (amending Article 57-27° of the General Tax Code), ends the taxation that previously applied to these pensions.
Only individual supplementary pensions remain subject to income tax, after a 70% allowance up to MAD 168,000 of annual pension, then 40% above.
Practical impact for an MRE retiree
An MRE who retires in Morocco and transfers foreign pensions in non-convertible dirhams accumulates several advantages:
- •Full exemption of the Moroccan basic pension (CNSS/CMR/RCAR)
- •80% reduction of income tax on foreign pensions permanently transferred in dirhams
- •70% allowance on gross taxable pension income up to MAD 168,000 per year (40% above)
In practice, an MRE retiree with a French pension of EUR 1,600/month and a CNSS pension of MAD 2,200/month pays an effective income tax close to zero in Morocco, versus around 11% in France on the same pension.
Conditions for the 80% reduction
For foreign-source pensions, the 80% income tax reduction is subject to:
- •The pension is transferred permanently to Morocco in non-convertible dirhams
- •The annual global income return is filed before 1 March, see our MRE France-Morocco tax return guide
- •Payment is made electronically
- •A certificate of payment from the pension provider plus a bank certificate stating the amount in foreign currency and its dirham equivalent are provided
CNSS threshold lowered to 1,320 days
Since 1 May 2025 (Law 02.24, decree 2.25.265), the minimum contribution threshold for a CNSS pension dropped from 3,240 to 1,320 days (about 4 years). Pension levels are tiered:
- •1,320 to 1,619 days: minimum pension
- •1,620 to 2,159 days: intermediate pension
- •2,160 to 2,699 days: higher pension
- •2,700 to 3,239 days: high pension
This measure is retroactive to 1 January 2023. Affected retirees can apply via the Taawidaty portal or in a CNSS branch.
Why Morocco attracts MRE retirees
The combination of tax advantages (full exemption + 80% reduction), lower cost of living, accessible AMO health coverage and proximity to Europe makes Morocco one of the most advantageous retirement destinations. A retired MRE settling in Morocco can reduce their tax bill by 5 to 10 times compared to France or Belgium.
Concrete steps to claim the exemption
- •Notify your foreign pension provider of your new Moroccan address.
- •Open a non-convertible dirham account at a Moroccan bank (CDC). See our bank account opening guide.
- •Set up the international transfer with your bank stating the pension origin.
- •File the annual return before 1 March of each year on the DGI portal.
- •Attach the certificate from the pension provider plus the bank's dirham-conversion certificate.
Other 2026 measures benefiting retirees
The 2026 Finance Law also reinforces:
- •The AMO Tadamoun coverage for retirees without prior affiliation
- •Inheritance protection (see the Moudawana reform 2026: 8 key changes for MRE)
- •The simplification of CNSS pension transfer to MRE bank accounts via the new Taawidaty portal
For concrete simulations adapted to your situation, find a verified Moroccan tax expert in our LesMRE directory.
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