The tax convention between the United Kingdom and Morocco, signed in 1981, remains fully in force after Brexit: leaving the EU has no impact on this independent bilateral treaty. For the 80,000 MRE residing in the UK, this convention governs the taxation of Moroccan income (rents, dividends, CNSS pension) and allows double taxation to be avoided via the tax credit system. This guide explains how to declare your Moroccan income via HMRC Self Assessment and how to optimize your post-Brexit tax situation.
Costs & fees
| UK specialist accountant | £300–1,500/year | For Self Assessment with foreign income |
| Online Self Assessment (HMRC) | Free | Via the gov.uk portal |
| HMRC late filing penalty | £100 minimum | Plus interest if tax is owed |
| GBP/MAD conversion | Variable | Use official HMRC rate or annual average rate |
Timeline
Confirm Your UK Tax Residency
You are considered a UK tax resident if you spend more than 183 days during the UK tax year (6 April – 5 April), or if you have sufficient ties there (family, housing, work). The UK Statutory Residence Test is a precise tool for determining your status. As a UK tax resident, you are taxable on all your worldwide income. The British tax year runs from 6 April to 5 April of the following year, an important particularity for timing your returns.
💡 Tip — Use the HMRC online tool 'Check your UK tax residency status' for an initial assessment.
⚠️ Warning — Even if you have non-domiciled (non-dom) status, your Moroccan income may still be taxable under specific rules.
Identify Moroccan Income to Declare
All your income from Moroccan sources must be identified: rents received on real estate in Morocco (first taxed in Morocco under the convention), dividends from Moroccan companies (15% withholding at source in Morocco), CNSS pension or retirement paid by a Moroccan employer, interest on Moroccan bank accounts. The exchange rate to use is generally the annual average rate published by HMRC or a spot rate at the date of receipt. In 2026, 1 GBP ≈ 13.5–14 MAD, which directly impacts the declared amount.
💡 Tip — Download your CNSS career statement and DGI tax assessments before starting your return.
Declare Moroccan Income in HMRC Self Assessment
Self Assessment is the tax filing system for people with income not subject to automatic withholding (PAYE), such as foreign income. You must register with HMRC to obtain a UTR (Unique Taxpayer Reference), then complete form SA100 with supplements SA106 (foreign income) and SA105 (foreign rental income). The online return must be submitted before January 31 following the end of the tax year. The system automatically calculates tax owed based on the information entered.
💡 Tip — Complete your Self Assessment before December to avoid the January rush and allow time if documents are missing.
⚠️ Warning — Failing to declare foreign income can trigger an HMRC investigation with penalties up to 200% of tax owed.
Claim Tax Credit for Taxes Paid in Morocco
The UK-Morocco convention provides a Foreign Tax Credit Relief mechanism allowing you to deduct from your UK tax the taxes legally paid in Morocco on the same income. This credit is claimed in form SA106, section 'Foreign Tax Credit Relief'. It is capped at the UK tax amount corresponding to Moroccan income. For each income category (rents, dividends, pensions), you enter the gross amount, Moroccan tax paid, and HMRC calculates the applicable credit. Always attach Moroccan payment proof.
💡 Tip — Calculate the credit separately for each income source (rents, dividends, pensions) as the cap applies per category.
⚠️ Warning — Foreign Tax Credit Relief cannot be carried forward to subsequent years if it exceeds UK tax owed.
Keep Proof of Taxes Paid in Morocco
HMRC may request evidence of the foreign tax for which you are claiming credit. Keep essential documents: DGI payment receipts or certificates (downloadable from tax.gov.ma), Moroccan tax assessments, bank statements showing tax deductions, and rental contracts if declaring rents. These documents must be kept for at least 7 years (HMRC prescription). If your documents are in Arabic, arrange a certified English translation in case of audit. The Moroccan DGI portal now allows most tax certificates to be downloaded.
💡 Tip — Create an annual digital folder with all your Moroccan tax documents, easily accessible from the UK.
In depth
Brexit on January 31, 2020 changed many rules for British nationals and UK residents in Europe, but had no effect on bilateral tax conventions like that between the UK and Morocco. These treaties are concluded directly between sovereign states and are independent of EU membership. The 1981 UK-Morocco convention therefore remains fully applicable. However, Brexit has created indirect complications for UK MRE: financial transfers between the UK and the eurozone may require additional intermediaries, GBP/MAD exchange rate fluctuations may be greater, and MRE with assets in EU countries now need to manage up to three potential tax systems. New HMRC rules on non-domiciled residents (non-doms), reformed in 2025, also affect some MRE in the UK: from April 2025, the remittance basis regime was progressively abolished, making all UK residents taxable on their worldwide income from their first year of residence.
❌ Common mistakes to avoid
- ✕Believing Brexit abolished the UK-Morocco tax convention (it remains fully in force)
- ✕Forgetting to register for Self Assessment if you have Moroccan income
- ✕Using the wrong GBP/MAD exchange rate to convert Moroccan income
- ✕Not keeping Moroccan tax receipts needed for Foreign Tax Credit Relief
🔗 Official links and resources
❓ Frequently asked questions
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