Income received in France, rental income in Morocco, capital gains on property: the tax situation of an MRE residing in France is subject to two sets of legislation. Practical guide for correct declaration in both countries and using the Franco-Moroccan tax treaty signed in 1970.
Determine your main tax residence
You can only have one main tax residence at a time. French tax residence criteria: having your home (family) in France, your main place of stay (more than 183 days), or your main professional activity there. If you are a tax resident in France, you are liable for tax in France on your worldwide income (France + Morocco). The Franco-Moroccan tax treaty then determines which country has priority for taxation on each type of income.
💡 Tip — If in doubt about your tax residence, consult a Franco-Moroccan tax lawyer — an error in tax residence can lead to significant reassessments in both countries.
Understand the 1970 France-Morocco tax treaty
The 1970 Franco-Moroccan tax treaty allocates taxation rights according to income type: rental income — taxation possible in both countries, with tax credit in France to avoid double taxation; capital gains on property — taxable in Morocco, declarable in France with tax credit; dividends — withholding tax in Morocco capped at 10-15% depending on circumstances; salaries — taxable in the country where the activity is carried out.
💡 Tip — The 1970 convention is freely available online on the impots.gouv.fr website — take time to read the articles concerning your specific type of income.
Declare Moroccan income in France
If you are a French tax resident, you must declare your worldwide income on your French tax return (form 2042 and 2047 for foreign income). For Moroccan rental income: report it in the box provided for foreign income. The French administration will calculate the corresponding tax then grant you a tax credit equivalent to the tax you paid in Morocco on that income. Net result: you don't pay twice on the same income.
💡 Tip — Keep the Moroccan tax assessment (or withholding tax certificate) for each Moroccan income declared in France — the administration may request it during an audit.
File online in both countries
In France: declaration on impots.gouv.fr before 31 May (usual deadline), form 2047 mandatory for foreign income. In Morocco: declaration on simpl.tax.gov.ma in the non-residents section, before 31 January for income from the previous year. Both declarations must be consistent: the same income must appear in both countries with the same amounts converted at the official rate for the year.
💡 Tip — Keep a summary table of your income by country with the exchange rates used — this greatly facilitates preparation of returns in both countries and avoids inconsistencies.
Special cases and optimisations
Sale of property in Morocco: capital gain is taxable in Morocco (TPI) and must be declared in France with tax credit. Dividends from a Moroccan company: taxable in Morocco with withholding tax, to be declared in France. Pension received in Morocco by a French resident: taxable in France under the treaty. For complex situations (multiple properties, income in several countries), a firm specialising in Franco-Moroccan international tax is strongly advised.
💡 Tip — For complex situations, invest in a specialist firm from the first year — international tax errors are often very costly to correct retrospectively.
❌ Common mistakes to avoid
- ✕Believing you have nothing to declare in France if you've already declared in Morocco — false if you're a French tax resident
- ✕Not using the tax credit mechanism and paying twice on the same income
- ✕Declaring inconsistent amounts between the two countries by using different exchange rates
🔗 Official links and resources
❓ Frequently asked questions
Need an expert for your project?
Find a Moroccan professional verified by LesMRE to guide you step by step.
Find a verified expert