Morocco

{"ftc_utility":"medium","fbar_trigger_notes":"US expats with Moroccan bank accounts (dirhams or foreign currency) must report those accounts on FinCEN Form 114 (FBAR) if aggregate balances exceed $10,000 at any point during the calendar year. Morocco has not signed the Common Reporting Standard (CRS) as a sending jurisdiction to the US, but Moroccan banks operating under international agreements may still report. Local accounts are commonly required for payroll, rent payments, and utility setup.","ftc_utility_reason":"Morocco taxes residents on worldwide income at rates up to 38%, so US expats earning Moroccan-source income will typically pay more Moroccan tax than US tax on the same income, generating excess foreign tax credits. For US-source income, FTC utility is lower because Morocco generally does not tax foreign-source income of residents at the same rate. The impatriate regime (50% reduction for qualifying employees) can reduce Moroccan tax in the first 5 years, potentially reducing FTC available to offset US liability.","presence_day_count_notes":"Morocco does not impose a formal cap on tourist or visitor stays for US citizens, but long-term residents typically obtain a residency permit (carte de sejour). No structural barrier prevents accumulating 330 qualifying days in a 12-month period. Periods of presence in Morocco count toward the physical presence test regardless of visa type.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":16800,"local_tax_rate_on_earned_income":0.38,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Pension income received by Moroccan residents is taxed at progressive income tax rates (0% to 38%) after a 40% deduction on gross pension income. The effective rate therefore depends on total pension income. Foreign pensions are subject to the same treatment as domestic pensions for residents.","tax_rate":null,"locally_taxed":true},"social_security":{"notes":"The 1981 US-Morocco income tax treaty does not explicitly exempt US Social Security benefits from Moroccan tax. Benefits received by a Moroccan resident are in principle taxable as foreign-source income. The 40% pension deduction available on pension income may partially reduce the tax burden. No totalization agreement exists between the US and Morocco.","locally_taxed":true,"treaty_protection":false},"roth_distributions":{"notes":"Morocco does not have a concept equivalent to a Roth IRA. Distributions from a Roth IRA received by a Moroccan tax resident may be treated as foreign-source income. The tax-free status under US law is not recognized by Morocco. The 40% pension deduction may not apply if distributions are not characterized as pension income under Moroccan law.","locally_taxed":true},"us_401k_ira_distributions":{"notes":"The US-Morocco tax treaty (1977, entered into force 1981) does not include a specific exemption for US-source pension distributions such as 401(k) or IRA withdrawals in the same manner as more modern treaties. Distributions received by a Moroccan tax resident would generally be treated as foreign-source pension income and taxed under Moroccan domestic rules. A 40% deduction applies to pension income received by Moroccan residents, effectively reducing the taxable base. The treaty has limited provisions on pensions and the practical treatment should be confirmed with a local adviser.","tax_rate":0.2,"locally_taxed":true,"treaty_protection":false}}

{"rate":0.2,"notes":"Capital gains on real property are taxed at 20% (minimum 3% of sale price). Gains on listed securities are taxed at 15% for individuals.","details":{"tax_type":"Capital Gains Tax","country_name":"Morocco","country_iso_code":"MAR","source_references":["PwC Worldwide Tax Summaries - Morocco","Direction Generale des Impots Morocco"],"last_verified_date":"2026-06-03","general_description":"Morocco taxes capital gains differently depending on asset type. Real estate gains are subject to a 20% rate with a minimum tax of 3% of the gross sale price. Gains on listed shares and similar securities are taxed at 15% for individuals. Gains on unlisted shares are taxed at 20%. Certain exemptions apply, including for a primary residence held more than 8 years.","corporate_capital_gains":{"rate":0.2,"tax_treatment":"Included in taxable corporate income and taxed at the standard corporate income tax rate, which ranges from 20% to 35% depending on taxable profit level."},"individual_capital_gains":{"rate":0.2,"tax_treatment":"Real estate gains taxed at 20% (minimum 3% of sale price). Listed securities gains taxed at 15%. Unlisted securities gains taxed at 20%. Primary residence exempt if owned more than 8 years or if proceeds are reinvested in a new primary residence within 6 months."}}}

{"notes":"Dividends paid to individuals resident in Morocco are subject to a 15% withholding tax, which is a final tax. Dividends paid to non-residents are also subject to 15% withholding, subject to reduction under applicable tax treaties.","rates":[{"rate":0.15,"type":"withholding","notes":"Standard rate for resident and non-resident individuals; treated as final tax for residents."}]}