It is one of the questions I am asked most often after a signing: “And the housing tax, how much will that be?” The answer often surprises people, because it depends less on the price of the property than on how you use it. A riad you live in all year and the same riad used a few weeks a year do not pay the same at all.
Here is how it works in Marrakech, with the real scales and worked examples.
Two taxes, one notice
Every year you receive a notice that actually covers two local taxes. The housing tax (taxe d’habitation) concerns the home you occupy. The municipal services tax (taxe de services communaux) pays for what the city does for you day to day: rubbish collection, clean streets, lighting and road maintenance. Both are calculated on the same base, but not in the same way.
Since the 2025 reform of local taxation (Law No. 14-25), both are managed by the Direction Générale des Impôts, the DGI. For you, the change is mostly practical: everything can now be followed and paid online.
Does it apply to you?
The housing tax covers a home occupied by its owner, whether they live there all year or just a few weeks, and a home lent free of charge to a relative. A property rented to a third party is in principle excluded, since the rent is already taxed as income, but it remains subject to the municipal services tax. What counts is the situation on 1 January.
| Your situation | Housing tax | Municipal services tax |
|---|---|---|
| You live there all year (main residence) | Yes, with a 75% allowance | Yes, with the same allowance |
| You come for a few weeks or months a year | Yes, on the full base | Yes, on the full base |
| You lend it free of charge to a relative | Yes | Yes |
| You rent it to a third party | In principle no | Yes |
| It is empty and you can prove it | Exemption possible on request | Depending on the case |
| It is new (less than 5 years old) | No | Yes |
It all starts with the rental value
Neither the purchase price nor the size is used directly. The base is the rental value: what your property could earn if it were rented for a year. It is set by an assessment commission that compares your property with others in the same area, of the same size and standing, and it is revised every five years.
That is why two properties with the same price can receive very different notices. A well-located riad in the medina or a villa with a pool in the Palmeraie has a higher rental value than an apartment of the same size on the outskirts. Your rental value appears on your notice: it is the first figure to look at.
How the housing tax is calculated
The scale works in bands, rather like income tax. Each slice of the base is taxed at its own rate: you do not pay 30% on everything, only on the part above 40,000 dirhams.
| Band of the base (MAD per year) | Rate for the band | Maximum tax in the band |
|---|---|---|
| Up to 5,000 | 0% | 0 |
| 5,001 to 20,000 | 10% | 1,500 |
| 20,001 to 40,000 | 20% | 4,000 |
| Above 40,000 | 30% | depends on the amount |
Take a base of 60,000 dirhams. The first 5,000 are not taxed. The next 15,000 are taxed at 10%, which is 1,500. The following 20,000 at 20%, which is 4,000. The last 20,000 at 30%, which is 6,000. In total: 11,500 dirhams.
Accountants use a shortcut: apply the rate of the top band to the whole base, then subtract an “amount to deduct” that corrects the difference. For 60,000, that gives 60,000 × 30% − 6,500 = 11,500. The result is the same.
| If your base is… | The quick calculation |
|---|---|
| below MAD 5,000 | no tax |
| between MAD 5,001 and 20,000 | base × 10% − 500 |
| between MAD 20,001 and 40,000 | base × 20% − 2,500 |
| above MAD 40,000 | base × 30% − 6,500 |
Because of the bands, the rate you actually pay stays well below the headline 30%: about 7.5% for a base of 20,000 dirhams, 19% for 60,000, and just over 25% for 150,000.
Main residence or second home: the real difference
If the property is your main residence, the base is reduced by 75% before anything else. In other words, only a quarter of the rental value is taxed. For a second home, there is no allowance at all.
| Rental value (MAD) | As a main residence | As a second home |
|---|---|---|
| 20,000 | 0 | 1,500 |
| 40,000 | 500 | 5,500 |
| 80,000 | 1,500 | 17,500 |
| 120,000 | 3,500 | 29,500 |
| 160,000 | 5,500 | 41,500 |
A rental value of up to 20,000 dirhams a year therefore costs nothing in housing tax if you live there all year. This is often where my foreign clients and Moroccans living abroad are surprised: since they come only a few months a year, their property counts as a second home.
The municipal services tax
Here there are no bands and no tax-free first slice: a single rate applies from the first dirham. It depends on where the property is.
| Where the property is | Rate |
|---|---|
| Within the urban perimeter (medina, Gueliz, Hivernage and most of the city) | 10.5% |
| In a peripheral area or a designated centre, depending on the municipality (some areas on the Ourika or Amizmiz roads, or towards Agafay) | 6.5% |
The base is the same as for the housing tax, including the 75% allowance for a main residence. For a rented property, it is set by reference to the rent. The owner is liable, even if the lease can pass it on to the tenant. Your notice shows which area applies.
Three examples in Marrakech
To make this concrete, here is what three typical properties would pay, depending on whether you live there all year or not. The rental values are realistic examples, not official figures.
| Property | Rental value | Use | Housing tax | Municipal services | Total per year |
|---|---|---|---|---|---|
| Apartment in Gueliz | MAD 36,000 | Main residence | 400 | 945 | MAD 1,345 |
| Apartment in Gueliz | MAD 36,000 | Second home | 4,700 | 3,780 | MAD 8,480 |
| Riad in the medina | MAD 60,000 | Main residence | 1,000 | 1,575 | MAD 2,575 |
| Riad in the medina | MAD 60,000 | Second home | 11,500 | 6,300 | MAD 17,800 |
| Villa in the Palmeraie | MAD 150,000 | Main residence | 5,000 | 3,938 | MAD 8,938 |
| Villa in the Palmeraie | MAD 150,000 | Second home | 38,500 | 15,750 | MAD 54,250 |
For the same property, the bill is six to seven times higher as a second home. It is worth keeping in mind before you buy, especially if you plan to come only a few weeks a year.
Exemptions worth knowing
| Situation | What you gain |
|---|---|
| New building or extension | No housing tax for 5 years after the works are completed |
| Empty property, declared and justified | Exemption from the housing tax on request |
| Low rental value | Nothing to pay on the band up to MAD 5,000 |
| Social housing and assisted programmes | Specific exemptions, under the conditions set by law |
Paying, declaring, disputing
The notice arrives every year and can be paid online at tax.gov.ma, at a DGI office or through some banks. If you live abroad, you can pay remotely or ask a relative to do it. Late payment leads to penalties, around 10% and then 0.5% a month, to be checked on your notice.
Remember to declare changes within 45 days: completion of works, a sale, a change of use. And if a notice looks wrong, you have six months to file a claim with the administration.
A practical point if you sell: the tax is due by whoever occupies the property on 1 January. How it is shared between seller and buyer is settled in the deed, with the notary.
What I advise my clients
Before buying, always ask the seller for the latest tax notices and proof that they have been paid: arrears can slow a sale down. If the property becomes your main residence, make it known so you benefit from the allowance. And if you are buying to rent, include the municipal services tax in your profitability calculation from the start; on a fine villa it is far from negligible.
The scales and rules mentioned are those in force on the date of publication (Law No. 47-06 as amended, and Law No. 14-25). The examples are indicative. Your tax notice and the DGI are authoritative; for a specific case, ask a tax adviser or your notary.
Want to know the real cost of owning a property before you buy or sell in Marrakech? Let’s talk.
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