Morocco (MA)
Morocco is a gateway between Europe and Africa — a kingdom of extraordinary diversity combining ancient imperial cities (Marrakech, Fez, Meknes, Rabat), dramatic Atlas Mountain ranges, Sahara Desert dunes, Atlantic and Mediterranean coastlines, and a growing cosmopolitan expat scene.
2026 Annual Changes — Morocco
Updated thresholds, benefits, and regulatory changes effective this year.
Key changes for 2026 in Morocco affecting expats: (1) Income tax (IR) reforms from Finance Law 2025 take full effect — top IR rate cut from 38% to 37%, zero-band extended to 40,000 MAD. (2) SMIG raised to 3,422.72 MAD/month (17.92 MAD/hour) from January 2026 per Decree 2-25-983 (+5% tripartite agreement). (3) AMO health insurance coverage expanded. (4) Amazigh New Year (Yennayer 13 January) official paid holiday — fully embedded. (5) Real estate transfer tax: 4% residential unchanged. (6) Tourist tax increased in Marrakech and Agadir. (7) Bank Al-Maghrib policy rate reduced from 2.5% to 2.25% (held through March 2026). (8) CNSS contribution rates: employee 6.74%, employer ~21.09% (no change). (9) Digital dirham pilot continues — no consumer-facing changes.
Key Changes for 2026
| Category | 2026 Value | Previous | Effective Date |
|---|---|---|---|
| Minimum Wage SMIG (Salaire Minimum Interprofessionnel Garanti) for private sector employees increased. Minimum agricultural wage (SMAG) also increased proportionally. | 3,422.72 MAD/month (SMIG) | 17.92 MAD/hour | SMAG: verify current rate with Ministère du Travail (proportional increase) | 3,111 MAD/month SMIG (2025) | 1 January 2026 |
| Income Tax (IR) — Brackets Finance Law 2025 reforms fully effective: the zero-tax band extended, and salaried employee abatement maintained at 40% (capped at 35,000 MAD). Tax brackets adjusted for inflation. Net effect: employees earning under 50,000 MAD/year pay slightly less IR. | 0% up to 40,000 MAD | 10% from 40,001 to 50,000 | 20% from 50,001 to 60,000 | 30% from 60,001 to 80,000 | 34% from 80,001 to 180,000 | 37% above 180,000 (top rate reduced from 38% to 37% under Finance Law 2025) | 0% up to 30,000 | 10% to 50,000 | 20% to 60,000 | 30% to 80,000 | 34% to 180,000 | 38% above (2025) | 1 January 2026 |
| Amazigh New Year (Public Holiday) Yennayer (Amazigh New Year, 13 January) is an official paid national holiday for the third consecutive year. Fully embedded in the national holiday calendar by Royal Dahir. All private and public sector employers must grant this day as a paid holiday. | 13 January — paid national public holiday (Eid Al Amazigh / Yennayer) | Unofficial observance before December 2023 royal decree | 13 January 2026 |
| CNSS Contribution Rates No change to CNSS contribution rates in 2026. Rates remain stable following the 2023 reform that introduced the current structure. | Employee: 4.48% (short-term benefits) + 2.26% (AMO) = 6.74% total. Employer: 6.40% (family allowances) + 8.98% (short-term) + 4.11% (AMO) + 1.60% (professional training) = 21.09% total. Note: long-term pension benefit is employer-only (not deducted from employee salary). | Same as 2025 — no change | Ongoing from January 2025 |
| Bank Al-Maghrib Policy Rate Bank Al-Maghrib maintained its key policy rate at 2.5% throughout 2026 following two rate cuts in 2024. This supports lower mortgage rates and business lending costs compared to 2022–2023 highs. | 2.25% policy rate (held steady through March 2026) | Mortgage rates range: 4.0–6.0% fixed | 2.5% (2025); 3.0% early 2024 before rate cuts | From December 2024 onwards |
| AMO Health Insurance — Coverage Expansion Chantier de Généralisation de la Protection Sociale continues its phased implementation. Self-employed (Auto-Entrepreneurs and liberal professions) AMO enrollment capacity expanded. Online enrollment via cnss.ma improved. AMO formulary (list of covered medications) expanded with new generic drugs. | AMO coverage now extends to a broader range of self-employed and Auto-Entrepreneur workers who register proactively with CNSS. Core coverage terms (70–80% reimbursement at affiliated facilities) unchanged. | AMO previously effectively limited to formal sector employees; self-employed coverage was technically available but enrollment was complex | Phased rollout throughout 2026 |
| Tourist Accommodation Tax (Taxe de Séjour) Several major tourism municipalities increased taxe de séjour (accommodation tax per night per person). Marrakech and Agadir raised their rates for 3+ star properties and short-term rental platforms. Applied automatically by Airbnb, Booking.com, and other platforms for Moroccan properties. | Marrakech: 15–25 MAD/night/person for riads and short-term rentals (up from 10–20 MAD). Casablanca and Rabat: 10–15 MAD/night/person. Agadir: 15–20 MAD/night/person. | Marrakech: 10–20 MAD/night | Other cities: 5–15 MAD/night | 1 January 2026 (varies by municipality) |
| Carte de Séjour No structural changes to Carte de Séjour categories or fees in 2026. The pluriannuelle (multi-year) residence permit introduced under the 2019 migration reform continues to be available for eligible applicants with 5+ years of legal residence. Processing times vary significantly by prefecture. | Annual Carte de Séjour: 100–400 MAD per year. Pluriannuelle: same fee structure. | No change | No change in 2026 |
| Vehicle Vignette (Taxe de Circulation) No change to vignette tax rates in 2026. Electric vehicles continue to benefit from reduced vignette rate as government promotes EV adoption. Deadline for payment remains 31 March. | 350–2,000 MAD depending on engine displacement. Electric vehicles: 150–500 MAD (reduced rate). Payment due by 31 March 2026. | Same as 2025 | Annual — due 31 March 2026 |
| Real Estate Transfer Tax (Droits d'Enregistrement) No change in 2026. Transfer tax on residential property purchases remains at 4% of purchase price. Commercial property transfer tax: 6%. The Finance Law 2026 did not modify these rates despite some lobbying for reduction. | 4% of purchase price (residential) | 6% (commercial/industrial) | Same as 2025 and previous years | No change |
| VAT (TVA) Rates Standard VAT rate remains 20%. Some previously exempt categories were brought into the VAT net under Finance Law 2025 provisions effective 2026, particularly certain professional services that were previously zero-rated. | Standard: 20% | Reduced: 14% (banking, electricity > 500 kWh) | 10% (restaurants, hotels, petroleum) | 7% (water, pharmaceuticals, basic foods) | Standard: 20% | Same reduced rates — some exemptions removed | 1 January 2026 |
| Capital Gains Tax on Property (TPI) No change to TPI (Taxe sur le Profit Immobilier) rate or exemptions in 2026. Primary residence exemption (6+ years occupancy) maintained. 20% rate on net profit for other properties unchanged. | 20% of net capital gain. Primary residence held 6+ years: exempt. Minimum tax: 3% of gross sale price even if net gain is below. | No change from 2025 | Ongoing |
| Pension — CIMR Contribution Limits Tax deductibility ceiling for CIMR and life insurance pension plan contributions adjusted for 2026. Contributions remain deductible from IR taxable income up to the applicable ceiling. | Deductible CIMR/pension contribution: 6% of gross professional income or up to 10,000 MAD per year, whichever is higher. | Same structure as 2025 — amounts adjusted for SMIG reference | 1 January 2026 |
| Digital Government Services Expanded services available on service.gov.ma portal. CNSS digital declarations and AMO reimbursement requests now fully digitised. Several administrative procedures previously requiring in-person visits can now be initiated online. | CNSS online: employer declarations, AMO reimbursement requests, pension information fully accessible online via cnss.ma. Prefecture: some Carte de Séjour appointment booking now available online in Casablanca and Rabat. | Many procedures required in-person visits in 2025 | Phased rollout throughout 2026 |
January Checklist
Actions to take each January when new rates take effect.
- 1
Renew Carte de Séjour if it expires in 2026: apply at least 2 months before expiry at your local préfecture or SEGMA — queues are long in January after the holiday period.
- 2
Check your CNSS contribution statement (Relevé de Carrière) online at cnss.ma to verify all 2025 contributions were correctly recorded by your employer.
- 3
Pay vehicle vignette (taxe de circulation) by 31 March 2026 — penalty: 100% of vignette amount if late. Pay at Perceptions du Trésor, post office, or damancom.ma online.
- 4
Observe Yennayer (Amazigh New Year) on 13 January — this is a paid national holiday. Confirm your employer grants this day off.
- 5
File income tax (IR) if self-employed or have foreign income: deadline is 30 April 2026. Gather all income documentation from 2025 for your accountant (expert-comptable).
- 6
Salaried employees: IR filing deadline is 28 February 2026. Verify that your employer has submitted your annual salary declaration (DAS — Déclaration Annuelle de Salaires) to DGI.
- 7
Review and update beneficiaries on life insurance policies, CIMR pension, and CNSS survivor pension records — particularly important after family status changes (marriage, birth, divorce).
- 8
Check CNSS family allowance declarations: if you have children, ensure they are registered with CNSS for allocations familiales (300 MAD/month per child). Renew annual declarations with your employer.
- 9
Review rental contract anniversary: if your bail (lease) anniversary falls in early 2026, review whether the landlord can legally increase rent and confirm notice period requirements.
- 10
Update insurance policies: review RC Auto (car insurance), MRH (home contents), and international health insurance annual renewals. Compare quotes in January before automatic renewals at potentially higher rates.
- 11
Check school enrollment and scholarship applications if your children are changing schools or applying for bursaries — most international schools in Morocco have January-March application deadlines for September 2026 entry.
- 12
Embassy registration: if you have not registered with your home country embassy in Morocco, do so at the start of the year — essential for emergency consular services, voting registration, and some document services.
- 13
CIMR and CNSS retirement projections: if approaching retirement age, request a formal pension projection from CNSS and CIMR to plan retirement timing. CNSS applications must be submitted 3 months before retirement date.
Where to Track Annual Changes
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DGI Tax Authority — Finance Law updates and tax rate changes: https://www.tax.gov.ma
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CNSS — Contribution rate updates and benefit changes: https://www.cnss.ma
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Bank Al-Maghrib — Monetary policy and exchange rate information: https://www.bkam.ma
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Portail National des Collectivités Territoriales — Municipality tax changes: https://www.pncl.gov.ma
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Ministère de l'Économie et des Finances — Annual Finance Law: https://www.finances.gov.ma
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SEGMA — Vehicle registration and vignette updates: https://www.segma.gov.ma
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Ministère de l'Intérieur — Carte de Séjour and residency policy: https://www.interieur.gov.ma
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ANCFCC — Property registration fee updates: https://www.ancfcc.gov.ma
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HCP (Haut-Commissariat au Plan) — Statistics and cost of living: https://www.hcp.ma
Finance Law changes in Morocco are enacted annually by Parliament in December and take effect 1 January. For the most current and official information: consult the Bulletin Officiel (official gazette) published by the Secrétariat Général du Gouvernement (sgg.gov.ma). Tax changes are particularly important to verify with a Moroccan expert-comptable (accountant) as implementation details may differ from headline announcements.
Annual Changes
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