If you own property in Morocco, you must pay two local taxes each year: the housing tax (TH) and the municipal services tax (TSC). Many MREs are unaware of them or pay them incorrectly, unknowingly accumulating penalties. Since June 2025, these two taxes are now managed by the DGI and no longer by the TGR, pursuant to law 14-25. The rates have not changed, but the contacts and payment channels have.
Understanding the two taxes: who pays what
Housing tax (TH): payable by any property owner in Morocco, whether occupied or not, primary or secondary residence. It is calculated on the annual rental value of the property, set by a local commission and revised by 2% every 5 years. The rental value corresponds to rents charged in the same neighbourhood for similar properties. Example: a flat in Casablanca with comparable rents of 5,000 DH/month has a rental value of 60,000 DH/year. Municipal services tax (TSC): payable by all owners of built premises. It funds street lighting, roads, and refuse collection. It is also calculated on the rental value. Since 12 June 2025 (law 14-25): the DGI manages both taxes. You pay on simpl-cf.tax.gov.ma/comptefiscal/login.
💡 Tip — To find out the rental value determined for your property, check your online account on simpl-cf.tax.gov.ma/comptefiscal/login with your tax identification number (IF) or your CIN.
⚠️ Warning — Property vacancy (empty, unoccupied property) does not exempt from housing tax. Only primary residence status or MRE status entitles you to allowances.
The 75% allowance: how to benefit from it in practice
As an MRE, you benefit from a 75% allowance on the rental value used as the basis for calculating both taxes, for your accommodation considered as your primary residence in Morocco. This allowance also applies if the accommodation is occupied free of charge by your spouse, children, or parents. You do not need them to pay rent. Concrete calculation with the allowance: rental value 60,000 DH/year - 75% = taxable base 15,000 DH. TH on 15,000 DH = (15,000 - 5,000) × 10% = 1,000 DH/year. TSC on 15,000 DH in urban area = 15,000 × 10.5% = 1,575 DH/year. Total of 2,575 DH/year, compared to over 10,000 DH without allowance. How to claim this allowance: declare your property as MRE primary residence to the DGI, including a copy of your foreign residence permit proving your residence abroad.
💡 Tip — Even if the accommodation is occupied by a relative without paying rent, declare it to the DGI as occupied free of charge by a family member. This triggers the 75% allowance.
⚠️ Warning — If you do not make this declaration, the DGI applies the full rate without allowance by default. Catch-up is possible by complaint but takes time.
The exact scales for housing tax and TSC
Housing tax scale (on rental value after any allowance): from 0 to 5,000 DH: 0% rate. From 5,001 DH to 20,000 DH: 10% rate. From 20,001 DH to 40,000 DH: 20% rate. Above 40,000 DH: 30% rate. Municipal services tax (TSC) scale: For properties in urban areas: 10.5% of rental value. For properties in peripheral areas of urban communes: 6.5% of rental value. Debt write-off threshold (law 07-20): if the total TH + TSC amount is less than 200 DH after allowances, the administration does not issue a tax notice. TH exemption for new constructions: new housing allocated to primary residence is exempt from TH for 5 years from completion. This exemption does not apply to TSC, which is due from the first year.
💡 Tip — Properties located in the former province of Tangier benefit from a permanent 50% reduction in the TH amount, in addition to applicable allowances.
⚠️ Warning — The 5-year exemption for new constructions is conditional on the completion declaration being made within the deadlines. Without this declaration, the exemption may be lost.
Payment deadlines and penalties for late payment
Tax notices generally arrive at the end of March/beginning of April, issued by the DGI. Payment deadline: 8 weeks from receipt of the notice. In practice: payment before the end of May (first instalment), before the end of October (second instalment if instalments are granted). Penalties for late payment: 10% immediate surcharge from the first month, then an additional 0.5% per month. Example: TH + TSC of 3,000 DH unpaid for 12 months = 3,000 × (10% + 12 × 0.5%) = 3,000 × 16% = 480 DH in penalties. How to pay from abroad: the portal simpl-cf.tax.gov.ma/comptefiscal/login allows online payment with your CIN and IF. A notarised power of attorney to a relative in Morocco can also be used to pay at a partner bank branch.
💡 Tip — Set up an annual alert on your calendar to check your tax notices on simpl-cf.tax.gov.ma/comptefiscal/login each year in April. Do not count on receiving a paper notice from abroad.
⚠️ Warning — Unpaid taxes create a blockage at the notary during any sale. Tax clearance has been mandatory since July 2024 to sell property in Morocco. Local tax debt can block a transaction worth a million dirhams.
What to do if you receive a reminder for past years
The tax administration can issue retroactive notices for the previous 4 years (limitation period). If you have never paid TH or TSC since purchasing your property, you may receive a reminder covering several years with all accumulated penalties. How to regularise: contact the DGI responsible for your property. Present your title deed, your CIN, and justify your MRE status to obtain the 75% allowance on arrears. Request a payment plan if the amount is high. How to contest an excessive rental value: file a reasoned complaint with the DGI with comparative evidence (rents charged in your neighbourhood, actual condition of the property, photos). The DGI can refer to the census commission for downward revision.
💡 Tip — If you have just inherited a property or bought it, immediately make a declaration of change of ownership to the DGI. This formality is mandatory within 3 months of any transfer of ownership.
⚠️ Warning — TH and TSC arrears constitute a charge on the property, transferable to heirs. A property with large local tax debts will be difficult to sell.
❌ Common mistakes to avoid
- ✕Never declaring your MRE status to the DGI and paying at full rate without allowance for years
- ✕Not checking your tax notices online each year: paper notices sent abroad rarely arrive
- ✕Ignoring arrears: 10% + 0.5%/month surcharges accumulate quickly and block any sale
- ✕Forgetting to declare a change of ownership to the DGI within 3 months of a purchase or inheritance
- ✕Not declaring accommodation occupied free of charge by a relative: the 75% allowance is lost
- ✕Believing that vacant accommodation is not taxed: vacancy does not exempt from TH or TSC
🔗 Official links and resources
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