MRE Retirees: basic pensions fully exempt from income tax in Morocco since January 2026

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:

1. •The pension is transferred permanently to Morocco in non-convertible dirhams
2. •The annual global income return is filed before 1 March, see our MRE France-Morocco tax return guide
3. •Payment is made electronically
4. •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

1. •Notify your foreign pension provider of your new Moroccan address.
2. •Open a non-convertible dirham account at a Moroccan bank (CDC). See our bank account opening guide.
3. •Set up the international transfer with your bank stating the pension origin.
4. •File the annual return before 1 March of each year on the DGI portal.
5. •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.

Share this article

Related articles

19 July 2026

Summer Pop-Up: Bank of Africa Comes to MRE, 7 Days a Week, No Branch Needed

During Marhaba 2026, Bank of Africa is rolling out pop-up banking spaces on the Agadir Corniche, in downtown Tiznit and at Dania Land park. Open 7 days a week from 10 am to 10 pm, they let MRE get information, personal support and start certain procedures during the holidays.

19 July 2026

The Euro Buys Fewer Dirhams: What It Means for Your Transfers This Summer

The euro reference rate slipped from 10.691 to 10.658 dirhams between July 9 and 15, 2026, according to Bank Al-Maghrib. On 1,000 euros exchanged, that is 33 dirhams less. In the middle of the Marhaba season, here is the real impact and the right reflexes to limit the loss.

17 July 2026

Remittances from Moroccans abroad: over 50 billion dirhams by end of May 2026, a new record, and what it means for your transfers

Remittances from Moroccans worldwide reached 50.22 billion dirhams by the end of May 2026, up from 46.16 billion a year earlier. An 8.8% rise that sets a new record. Beyond the figure, we look at what this volume means for your transfers and how to compare the real cost of sending money.

Related practical guides

Have a project in Morocco?

Find a LesMRE-verified expert to guide you through your steps.