Retirees can benefit from income tax benefits.
By transferring all or part of their pension to a non-convertible Moroccan dirham account, they will benefit from several abbacations on the amount of their gross income (CSG and RDS not deducted), which would amount to a tax of about 5% on this reported income.
An accountant can easily handle your tax return. For civil servants, since the CSG RDS is deducted at source, the amount of their income to be declared will be reduced as much. Persons receiving a retirement pension benefit from the 80% reduction in the amount of tax payable on retirement pensions.
It is possible to transfer only the part necessary for the lifestyle on the spot. Taxation can therefore be very low.
Taxpayers resident in Morocco and holders of retirement pensions from foreign sources benefit from a reduction equal to 80% of the amount of tax due in respect of their pension and corresponding to the amounts transferred permanently in non-convertible dirhams.
Either an annual pension of € 100,000 converted at the exchange rate of 11 DH: 100,000 € x 11 and repatriated to Morocco on a non-convertible DH account 1,100,000 dhs
Abatement on retirement pensions (Moroccan and foreign)
1.100.000 dhs x 40% = 440.000 dhs
Net taxable income 660,000 dhs
IGR corresponding: (660,000 dhs x 44%) – 14,960 dhs = 275,440 dhs
Fiscal mitigation: 275,440 dhs x 80% = 220,352 dhs
Tax due 55.088 dhs = 5%
In this case, the tax payable by the pensioner is 5% of the amount of pensions repatriated to Morocco on a final basis in non-convertible dirhams.
It should be noted that the tax on wealth or on capital does not exist in Morocco.
There is no Land Tax, nor an annual residential tax, only a very small urban tax. If you declare to Morocco, your main house with your resident card, this urban tax can be around 30 € and if in secondary residence 70 to 200 € annual. Exemption in rural areas.