Morocco sits 140th out of 217 in our world ranking, with a FiScore of 4.6 out of 10. On its ordinary rates there is nothing remarkable: a scale reaching 37%, VAT at 20%.

Its interest lies elsewhere, and it is aimed at one profile: the retiree.

The mechanism, in two stages

A Moroccan tax resident receiving a foreign-source pension gets two advantages that stack.

First stage: a flat allowance against the gross taxable amount of the pension. The rate of that allowance has changed several times in recent years and varies by case. That is the first thing to confirm with an adviser when you actually put the file together, rather than in an article, this one included.

Second stage, and this is the one that counts: an 80% reduction of the tax due on the part of the pension transferred to Morocco.

The condition is explicit: the money must be transferred permanently, in non-convertible dirhams, and spent locally. Morocco is not being generous to someone who keeps their money elsewhere. It is being generous to someone who brings it in and spends it there.

Once both stages apply, the charge on an average pension comes down to a very low level.

The condition that decides everything

As always for a retiree, the tax treaty comes first.

The treaty between Morocco and your home country determines which one may tax your pension, and government service pensions generally remain taxable in the state that pays them, whatever your residence. Where that applies, the Moroccan reduction never touches that part.

For a British reader this is the whole question: a local authority, NHS, civil service or armed forces pension does not behave like a private one. Check that point before anything else. It decides whether the scheme is worth anything to you, and it cannot be worked around.

What Morocco offers besides

Tax residence is established by a permanent home, a main establishment, or more than 183 days of presence.

The cost of living stays well below Western Europe's, particularly outside the big cities and the tourist strips.

Proximity. A short flight from most of Western Europe, little or no time difference, and long-established foreign communities.

Language. French is widely used in administration and business, and English is common in the main cities and in the property trade.

Exchange control, which is the real catch

The dirham is not freely convertible, and getting money out of Morocco is more constrained than getting it in.

That is the exact flip side of the advantage above. The scheme rewards money that enters and spends; it does not smooth the path of money that wants to leave. For a retiree that is not an abstract point: it touches what happens if you need to fund care elsewhere, help a family member abroad, or simply change your mind and go home.

Plan the exit before you plan the entry.

The drawbacks

Access to high-level healthcare is good in the large cities and uneven elsewhere, which matters for this profile more than most.

Property in the sought-after areas has risen a great deal, Marrakech and the coast first.

The regime can move. The allowance has already been amended several times, and a full exemption for certain basic pensions came into force on 1 January 2026.

Companies, briefly

Corporate tax is 20% on profit below MAD 100 million, 35% above, and 40% for banks and insurers. None of that has anything to do with the pension scheme, and Morocco is not a place people incorporate for tax reasons.

So, who is Morocco for?

  • A retiree on a private pension, ready to live there: this is the target profile, and the scheme is generous.
  • A retiree on a government service pension: check the treaty first. The answer may be "no benefit at all".
  • Someone working, or running a business: nothing specific here. The ordinary scale reaches 37%.
  • Someone who wants to keep their income outside the country: the mechanism does not work. It is built on the transfer.

For retirees, Greece at 7% and Malta are the two other options worth putting side by side with this one.

The full table of Moroccan rates is on our Morocco page, and the comparison tool puts it next to anywhere else. Before deciding anything, read how to actually leave.

Sources

The Moroccan Direction generale des impots and PwC Tax Summaries, verified in August 2026. Corporate rates from our own country pages. An error reported to us gets fixed.

This page informs, it does not advise. Before deciding anything, talk to a professional who will look at your situation, as our terms of use set out.