You are an MRE who owns an apartment or house in Morocco and you are heading back to Europe at the end of summer. How do you secure your property in your absence? Can you rent it out and repatriate the income? What are your tax obligations? This guide covers all the practical steps for managing your Moroccan property from abroad, including the 2026 tax changes. Sources: Moroccan General Directorate of Taxes (DGI), Office des Changes, National Agency for Land Registration (ANCFCC).
Costs & fees
| Notarised management power of attorney (France) | Check with the notary in the country of residence | Apostille depending on the country |
| Property management agency fees | Check with the agency | According to the management contract |
| Seasonal rental concierge fees | Check with the concierge service | Including reception, cleaning, platform management |
| IR foncier (rents, effective rate) | Scale from 0% to 37% (CGI, art. 73-I) | After 40% flat-rate deduction for expenses. Progressive rate |
| Withholding at source on professional leases (from July 2026) | 5% of rent | Rental income allocated to legal entities and to RNR/RNS taxpayers (business buildings), excluding a private owner's rents (DGI circular no. 737) |
| Home insurance (standard apartment) | Check with the insurer | Variable by property value and chosen cover |
Timeline
Setting up a property management power of attorney
Before leaving Morocco, draw up a notarised power of attorney giving a trusted third party (family member, real estate agency, lawyer) the powers to manage your property in your absence. This document must specify: (1) the property identification (address, land title or property number), (2) the authorised acts: signing leases, collecting rents, settling charges, authorising repairs up to a certain amount, representing before the co-ownership and public services, (3) the mandate duration, (4) the agent's remuneration if applicable.
💡 Tip: A written management contract specifies the fees of the property management agency.
⚠️ Warning: A power of attorney without limits on amounts or acts can expose assets in the event of bad faith by the agent. Acts of disposal (sale of the property, mortgage) require the principal's express authorisation (Code of Obligations and Contracts, art. 894).
Renting your property as a seasonal tourist let
Seasonal tourist rental (Airbnb, Booking.com type) is governed in Morocco by law 80-14 on tourist accommodation establishments and its implementing texts: see the guide [Renting out your property in Morocco: Airbnb, agency or direct](/en/guides/rent-out-property-morocco-mre-airbnb-agency-direct). For MREs, it can generate income during the summer. Options: (1) manage it yourself via online platforms (Airbnb, Booking, Expedia) with a trusted person on site to welcome tenants and handle check-ins and check-outs; (2) entrust management to a specialist concierge service (listings, reception, cleaning, inventories), whose remuneration is set by contract.
💡 Tip: The rules applicable to tourist rental (operating authorisation, declaration of travellers) are detailed in the guide on renting out a property in Morocco.
⚠️ Warning: Some co-ownership properties prohibit short-term rentals in their co-ownership rules, which specify the permitted uses.
Understanding Moroccan rental income taxation
Rental income in Morocco is subject to income tax on property income (IR foncier). For non-resident MREs: (1) Rents from standard leases (rental to individuals): subject to IR foncier with a 40% flat-rate deduction for expenses. The income tax scale ranges from 0% to 37% depending on taxable income (CGI, art. 73-I). (2) Rents from professional leases (rental to companies): the 2026 Finance Law introduced, from July 1, 2026, a 5% withholding at source on rental income allocated to legal entities and to individuals taxed under the actual or simplified net income regime for buildings that form part of their business assets (DGI circular no. 737). The rent that a private owner receives as property income does not fall within this scope. (3) The tax treatment of short-term tourist rental depends on how the income is classified: it is to be checked with the DGI (tax.gov.ma).
💡 Tip: The property income tax return is to be filed before March 1 each year with the DGI (CGI, art. 82).
⚠️ Warning: The 5% withholding at source introduced by the 2026 Finance Law on rental income (legal entities, taxpayers under the actual or simplified net income regime) does not exempt the recipient from filing a return with the DGI. It does not apply to the rent that a private owner receives as property income.
Repatriating your rental income to Europe
The transfer abroad of rental income is governed by the Foreign Exchange Office's General Instruction on exchange operations: the conditions and the documents to be handed to the bank are available on oc.gov.ma.
💡 Tip: The conditions of convertible dirham accounts are set by the Foreign Exchange Office (oc.gov.ma).
⚠️ Warning: The documents to be handed to the bank for a transfer of income are specified by the Foreign Exchange Office (oc.gov.ma).
Securing the property during your absence
Common practices to protect a property during the owner's absence: (1) Entrust keys to a trusted neighbour or family member with a list of emergency contacts (plumber, electrician, building caretaker). (2) Take out home insurance covering rental risks (water damage, fire, theft): conditions are set by each insurer. (3) For furnished rentals, carry out a detailed photo inventory before handing over keys to each tenant. (4) Install remote surveillance (connected exterior camera) if the property is isolated. (5) Pay co-ownership and syndic charges in advance to avoid arrears during your absence.
💡 Tip: Property documents (land title, notarial deed, plans) can be kept in a safe place and as digital copies.
⚠️ Warning: Posting the actual details of a tourist rental property on unsecured social-media or messaging groups exposes the owner to scams between individuals (fake tenants).
In depth
2026 tax changes for MRE rental income
5% withholding at source on rental income (Finance Law 2026): The 2026 Finance Law introduced a 5% withholding at source on the gross amount, excluding VAT, of rental income allocated to legal entities and to individuals taxed under the actual or simplified net income regime, for buildings that form part of their business assets. It applies from July 1, 2026, with a phased start for rents allocated to legal entities depending on the turnover of the payer (DGI circular no. 737). The rent that a private owner receives as property income does not fall within this scope.
40% flat-rate deduction: For property income, a 40% flat-rate deduction is granted on the gross rent amount before calculating IR. This deduction represents expenses (works, co-ownership charges, management fees, etc.).
Tourist rental and VAT: The tax treatment of income from tourist rental (short-term furnished) depends on how the income is classified: VAT and professional tax are to be checked with the DGI (tax.gov.ma).
France-Morocco tax treaty: The France-Morocco tax treaty (signed in 1970) provides that property income is taxable in the country where the property is located. Reporting formalities in France (forms, any tax credit) are handled by the French tax administration.
❌ Common mistakes to avoid
- ✕Leaving your property without a management power of attorney and being unable to handle emergencies remotely
- ✕Not declaring rental income to the Moroccan DGI
- ✕Believing that the 5% withholding at source of the 2026 Finance Law applies to a private owner's rent: it covers rental income allocated to legal entities and to RNR/RNS taxpayers (DGI circular no. 737)
- ✕Not carrying out an inventory before handing over keys and being unable to prove any subsequent damage
- ✕Authorising acts of disposal (sale, mortgage) in the management power of attorney without explicit limitations
🔗 Official links and resources
DGI Morocco, IR foncier (rental income)
Property income declaration and IR calculation
Office des Changes Morocco, MRE fund transfers
Rules for repatriation of rental income and funds for non-resident MREs
ANCFCC, Land Registration Agency (land title)
National Agency for Land Registration: land title verification and mortgage inscriptions
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