MREs residing in the United Kingdom face a fiscal system different from the continental European model: tax year 6 April to 5 April, online Self Assessment via HMRC, Statutory Residence Test (SRT) introduced in 2013, and the major 6 April 2025 reform that abolished the historic non-dom regime in favour of the FIG (Foreign Income and Gains) regime, a 4-year exemption for new UK residents. The UK-Morocco tax treaty signed on 8 September 1981 and in force since 29 November 1990 remains the reference text for allocating taxing rights. This guide details the rules applicable to British MREs in 2026: tax residence, salaries, pensions, dividends, real estate, and HMRC reporting obligations.
Costs & fees
| UK tax residence certificate (HMRC) | Check on gov.uk | Online request |
| Moroccan tax residence certificate (DGI) | Check on tax.gov.ma | With the DGI |
| UK accountant fees (Self Assessment with SA106) | Check with the professional | For a file with foreign income |
| Late Self Assessment penalty | Check on gov.uk | Under HMRC rules |
| Moroccan income tax on property profits, sale of a property | 20% of capital gain | Exemption if main residence for at least 5 years (CGI, art. 63-II-B) |
| Withholding on Moroccan dividends paid to UK resident | 10% (company holding at least 10% of the capital) or 25% in all other cases | Article 10 of the 1981 treaty, treaty cap |
Timeline
UK tax residence: Statutory Residence Test (SRT) and FIG regime
Since 6 April 2013, the UK applies the Statutory Residence Test (SRT) to determine tax residence. The test combines three stages: Automatic Overseas Tests (UK days under 16/46/91 depending on profile), Automatic UK Tests (183 days, only home UK, full-time work UK), and Sufficient Ties Test (combination of UK days and family/accommodation/work ties). A UK resident is taxed on worldwide income. Since 6 April 2025, the historic non-dom regime (which exempted unremitted foreign income) has been abolished. It is replaced by the FIG regime (Foreign Income and Gains): total exemption of foreign income and capital gains for new UK residents (after 10 years of prior non-residence) for 4 years. Beyond 4 years, return to the worldwide regime. The 1981 treaty (article 4) provides classic tie-breaker rules (permanent home, centre of vital interests, habitual abode, nationality) for dual residence conflicts.
💡 Tip: A UK tax residence certificate is requested from HMRC (gov.uk, 'apply for a certificate of residence or letter of confirmation').
⚠️ Warning: The non-dom regime was abolished on 6 April 2025; transitional provisions exist for former non-doms and can be consulted on gov.uk.
Earned income: article 15 treaty and Self Assessment SA106
Article 15 of the treaty assigns salaries to the country where the activity is exercised, except missions under 183 days with non-resident employer without permanent establishment. For a UK resident MRE with UK salaried activity: salaries taxable in the UK (PAYE withholding by employer). If you also receive Moroccan salary (temporary mission, board membership, dual employment), this income is taxable in Morocco (Moroccan IR), then declared in the UK via Self Assessment Form SA100 with SA106 supplement (Foreign pages). HMRC grants Foreign Tax Credit Relief (FTCR) capped at the UK tax due on this income. No FEIE equivalent like in the US: the UK applies only the tax credit method. UK tax year runs 6 April year N to 5 April year N+1; Self Assessment deadline 31 January year N+1 for online filing (31 October year N for paper).
⚠️ Warning: The UK staggered tax year (6 April to 5 April) complicates Moroccan filings (1 January to 31 December).
Retirement pensions: article 18 treaty and HMRC rules
Article 18 assigns private pensions to the State of residence of the beneficiary. A retiree MRE residing in the UK receiving a Moroccan pension paid in consideration of past employment is taxed only in the UK (income tax). The pension is declared on SA106. Moroccan public pensions (Moroccan State civil servants) remain taxable in Morocco under article 19. Conversely, a retiree who has transferred tax residence to Morocco may receive their UK pension (State Pension, private occupational pension) taxable in Morocco under article 18, provided they file Form DT-Individual with the UK payer to stop UK withholding.
💡 Tip: To stop UK withholding on your occupational pension when residing in Morocco, file Form DT-Individual with HMRC accompanied by your Moroccan tax residence certificate.
Dividends, interest and Moroccan real estate capital gains
Article 10 of the 1981 treaty limits Moroccan withholding on dividends paid to UK residents to 10% if the beneficial owner is a company controlling at least 10% of the capital, and to 25% in all other cases. Article 11 does the same for interest: 10% maximum at source in Morocco. The Moroccan company or bank withholds at source; the UK resident reports this income on SA106 and offsets the Moroccan withholding as Foreign Tax Credit Relief against UK tax due. Article 6 assigns rental income to the State where the property is located: your Moroccan rents are taxable in Morocco (Moroccan income tax after a 40% allowance, with withholding of 10% or 15% depending on gross rents when the tenant is a legal entity; the 5% withholding of the 2026 finance law concerns rental income paid to individuals under the actual or simplified net result regime, applied from 1 July 2026 by companies above the turnover threshold set by law). Article 13 assigns real estate capital gains to the State of property location: selling a flat in Casablanca triggers the Moroccan income tax on property profits (20%) (exemption if main residence for at least 5 years, CGI art. 63-II-B). This income remains to be declared in the UK on SA106 or SA108 (Capital Gains) with tax credit for Moroccan tax.
⚠️ Warning: Since 2017, the UK taxes UK non-residents on their UK real estate capital gains (Non-Resident Capital Gains Tax). If you are an MRE Morocco resident but own a UK property and sell it, you must file an NRCGT return within 60 days.
Self Assessment, HMRC deadlines and reporting obligations
Self Assessment is required in the cases defined by HMRC (foreign income, rental income, capital gains: see gov.uk). Tax year: 6 April to 5 April. Deadlines: 31 October for paper filing (SA100 + SA106), 31 January for online filing via Government Gateway. Tax balance payment: 31 January. Payments on account: 31 January and 31 July, calculated on 50% of N-1 tax. HMRC penalties apply in case of delay (see gov.uk). The UK has no equivalent to FBAR: no separate obligation to disclose foreign accounts (beyond income).
⚠️ Warning: If you have missed declaring Moroccan income for several past years, HMRC offers disclosure procedures (Worldwide Disclosure Facility, Code of Practice 9) whose conditions are set by HMRC.
In depth
The mechanism for eliminating double taxation in the United Kingdom is based on the tax credit method (article 22 of the 1981 treaty). In practice: the UK resident pays Moroccan tax (IR, TPI, withholdings) on Moroccan-source income, then declares this income on SA106 and offsets Moroccan tax paid up to the UK tax due on the same income. The credit is capped by the UK FTC limitation (UK tax that would have been due on this income if UK-only). Numerical example: a UK resident MRE earns 50,000 GBP UK salary and receives 10,000 GBP Moroccan rents taxed 30% in Morocco (3,000 GBP). On their Self Assessment, they declare the 10,000 GBP on SA106; HMRC calculates theoretical UK tax on these 10,000 GBP (e.g. 4,000 GBP at 40% marginal rate). FTCR capped at 3,000 GBP (Moroccan tax paid) is offset. They must therefore pay an additional 1,000 GBP in the UK. The major 2025 reform (non-dom abolition, FIG regime) has rebuilt the entire fiscal matrix: for new UK residents arriving from April 2025, Moroccan income is exempt in the UK for 4 years (no FTCR to activate as no UK taxation). Beyond, return to the classic tax credit system.
❌ Common mistakes to avoid
- ✕Missing the 31 January Self Assessment deadline: automatic HMRC penalty.
- ✕Confusing UK tax year (6 April to 5 April) and Moroccan calendar year: reconstruct Moroccan income pro-rata for exact UK period.
- ✕Forgetting to file Form DT-Individual to stop UK withholding on a pension received in Morocco.
- ✕Believing the non-dom regime still exists: abolished since 6 April 2025, replaced by FIG regime 4-year for new residents only.
- ✕Not checking with HMRC the rules for using Foreign Tax Credit Relief.
- ✕Selling a UK property as non-resident without filing NRCGT return within 60 days: automatic penalty and late interest.
🔗 Official links and resources
HMRC - Self Assessment foreign income SA106
SA106 form and HMRC instruction notes for foreign income
HMRC - Statutory Residence Test guidance RDR3
Official HMRC guidance on UK tax residence
HMRC - Certificate of residence
Request UK tax residence certificate
HMRC - Foreign Income and Gains regime (post 6 April 2025)
HMRC documentation on the non-dom reform and FIG regime
HMRC - UK-Morocco tax treaty 1981
Official text of UK-Morocco tax treaty and HMRC summaries
Moroccan DGI
Moroccan General Tax Directorate
❓ Frequently asked questions
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