Renting out your property in Morocco from abroad: lease, management mandate, 2026 withholding tax and eviction

Renting out property in Morocco from abroad does not subject an MRE owner to a separate body of rental law. The applicable law mainly depends on how the premises are used. An apartment or house leased for residential use, as well as premises used for non-commercial professional purposes, is governed mainly by Law No. 67-12 and, for matters it does not regulate, by Articles 627 et seq. of the Dahir forming the Code of Obligations and Contracts. Commercial premises in which a business undertaking is operated instead fall under Law No. 49-16 on commercial leases. This classification must be established before the contract is drafted.

Law No. 67-12 requires a written contract stating, in particular, the parties’ identities, a description of the premises, their intended use, the rent and the charges. The principle laid down by Article 230 of the Code of Obligations and Contracts remains essential: validly formed contractual obligations have the force of law between the parties. In practical terms, a precise lease better protects an owner living in Paris, Brussels or Madrid than an oral agreement managed by a relative. An oral lease may be proven, but disputes over the amount, term or unpaid rent become much more difficult.

For tax purposes, rent from real estate located in Morocco constitutes Moroccan-source property income. Articles 61 to 65 of the General Tax Code determine its classification and gross taxable amount. The 2026 regime does not provide for a uniform 15% withholding solely because the owner resides abroad. The specific rates generally applicable to property income are set out in Article 73-II-B of the General Tax Code: 10% when the annual gross taxable amount is less than MAD 120,000, and 15% when it reaches or exceeds that threshold, subject to the taxpayer’s specific circumstances.

Be careful not to confuse residence abroad with an absence of Moroccan obligations. Morocco retains the right to tax income derived from real estate located within its territory. Your country of residence may also require this income to be included in your worldwide income tax return and then apply the relevant tax treaty. The Franco-Moroccan Convention of 29 May 1970 allocates to Morocco the right to tax Moroccan real estate income and governs how it is taken into account in France. The treaties with Belgium, Spain, Italy, the Netherlands, Germany or Canada must be read separately: their mechanisms are not necessarily identical.

The mandate is governed by Articles 879 to 940 of the Code of Obligations and Contracts. It may be entrusted to an agency, a lawyer for legal acts, or a relative. Even between siblings, set out the powers in writing. A general wording such as “full powers” creates more risks than it resolves. List the search for a tenant, execution of the lease, the property condition report, collection of rent, payment of charges, authorized tax filings, receipt of bailiff’s documents and transfer of the file to a lawyer.

Expressly exclude sale, gift, mortgage, borrowing and delegation of the mandate if you do not wish to authorize them. Specify its term, the conditions for termination, the spending cap and the account into which rent must be paid. The representative must provide periodic statements, receipts, invoices and tax certificates. Article 903 of the DOC essentially requires the representative to account for their management and hand over what they have received. A power of attorney therefore does not remove the need to maintain simple but verifiable accounts.

You may sign a power of attorney at the Moroccan consulate with jurisdiction over your place of residence, particularly in France, Belgium, Spain or Italy. Depending on the nature of the instrument, the consulate may execute or authenticate the signature on a power of attorney intended for use in Morocco. Another option is to sign before a local notary and then obtain an apostille where the Hague Convention of 5 October 1961 is effective between Morocco and the country concerned. Check this point before signing: some accessions have been subject to objections between States, and formalities vary according to the country and document.

According to practices observed in 2025-2026, management agencies commonly charge between 5% and 10% of rent collected, to which approximately one month’s rent may be added for finding and placing a tenant. These fees do not arise from a national statutory fee scale. Require a mandate that separates management fees, repair costs, reletting fees and legal expenses. To prevent a representative from retaining cash, have the tenant pay directly into your Moroccan account. The representative may then receive only the amount needed for documented expenses.

A tax treaty normally prevents juridical double taxation, but it does not remove the obligation to report the income in your State of residence. For a French resident, the Franco-Moroccan Convention of 29 May 1970 grants Morocco the right to tax income from real estate located in Morocco. The numbering of this older convention does not always correspond to the modern OECD Model: do not rely on an automatic reference to “Article 6.” The income must nevertheless be reported on the French foreign income tax return, notably Form 2047, and then in the section corresponding to the applicable treaty mechanism.

France generally applies an exemption with account taken of the income for the effective tax rate to real estate income exclusively taxable in Morocco, rather than a tax credit calculated mechanically as under all recent treaties. Moroccan income may therefore increase the rate applicable to your other French income, even though it is not taxed a second time as ordinary French real estate income. Form 2044 is not necessarily the appropriate form for Moroccan real estate. Retain the lease, rent statement, DGI return, Moroccan tax assessment and withholding certificates.

For a Belgian resident, the Belgium-Morocco treaty also grants Morocco the right to tax Moroccan real estate. Belgium nevertheless requires the foreign income to be declared and may use it to determine the tax rate applicable to other income, in accordance with the treaty method and Belgian valuation rules. Spain, Italy, the Netherlands, Germany and Canada each have their own treaty and forms. Some countries apply a tax credit, while others apply an exemption with progression. The correct method therefore depends on the bilateral treaty and not merely on the fact that tax was paid in Morocco.

In practice, prepare a single annual tax file containing the gross amounts, charges not passed on to the tenant, withholding amounts, collection dates and exchange rate used. Request a tax status certificate from the DGI or retain electronic payment receipts. If the tenant is a company, do not rely solely on an internal accounting statement: require the withholding tax certificate. Consistent tax returns in both countries reduce requests for explanations. If a tax reassessment arises in one State despite the treaty, the mutual agreement procedure provided for by the treaty may be considered with the assistance of a tax adviser.

Do not cut off the water or electricity or change the locks. Even as the owner, you could face civil or even criminal proceedings, depending on the methods used. The first step is to gather the lease, the title deed or certificate of ownership, the condition report, bank statements and an accurate breakdown of the rent. The formal notice must then be served by a judicial enforcement officer. Under the regime established by Law No. 67-12, the special procedure for unpaid rent is governed by Articles 23 et seq., particularly the provisions concerning formal notice, validation and eviction.

The instrument must identify the parties, the premises, the unpaid instalments and the period allowed for payment. An incorrect address, a breakdown including unsupported amounts or improper service can result in several months being lost. After the statutory period expires—generally fifteen days under the special procedure—the lawyer applies to the Court of First Instance where the property is located. Depending on the case, the lawyer seeks payment, termination and eviction. Summary proceedings may be considered where the occupation is manifestly without legal right and no serious dispute exists, but they are not an automatic shortcut.

Based on observed practice in 2024-2026, allow approximately eight to eighteen months between the initial formal notice and an enforced eviction in a major court, and approximately six to twelve months in some less congested courts. These periods include adjournments, any expert assessment, service of the judgment, appeals and enforcement. In principle, the time limit for a civil appeal is thirty days from service of the judgment, in accordance with Article 134 of the Code of Civil Procedure, subject to the rules specific to the decision issued. A well-founded summary order may be obtained more quickly, with no guarantee as to enforcement.

Observed costs vary considerably: approximately 500 to 1,500 MAD, or €45 to €136, for certain formal notice and service documents; 1,500 to 4,000 MAD, or €136 to €364, for a straightforward enforcement stage; and often 6,000 to 20,000 MAD, or €545 to €1,820, in legal fees depending on the claims, procedural issues and appeals. Fees are freely negotiated and must be covered by a written agreement. The owner may be represented by their lawyer without attending ordinary hearings, unless the court exceptionally requires their attendance concerning a personal fact.

Budget for management costs before setting the rent. An agency often charges 5% to 10% of the amounts collected and sometimes one month's rent to find a tenant. A remote legal consultation frequently costs between 500 and 1,500 MAD, or approximately €45 to €136, depending on its duration and the lawyer's specialisation. Drafting or reviewing a lease, the power of attorney, translations and judicial enforcement officer's documents are billed separately. These amounts are 2025-2026 market ranges, not mandatory fees. Request a quotation specifying any VAT and disbursements.

The most costly mistake is to rent on trust, without a lease, condition report or traceable payment. The next is granting a general power of attorney to a relative, sometimes with no end date and no duty to account. For tax purposes, some MREs believe that a corporate tenant must necessarily withhold 15%, while others believe that any withholding eliminates their filing obligation in their country of residence. Both statements are incorrect. The Moroccan regime depends on the amount and the payer; the tax treaty then governs reporting and the elimination of double taxation abroad.

Choose a lawyer registered with a Moroccan Bar and experienced in leases and civil litigation. Ask who will actually handle the case, how the originals will be stored and how often you will receive a report. The fee agreement must distinguish between the consultation, first-instance proceedings, appeals, enforcement and travel. Also ask whether the lawyer handles tax matters or works with a chartered accountant. The same professional is not necessarily qualified to handle an eviction, a tax treaty and a complex inheritance dispute.

The mandate can generally be arranged from abroad after exchanging scans, verifying your identity and formalising the necessary power of attorney. Meetings are held by videoconference or telephone, after which the lawyer and judicial enforcement officer handle the documents locally. At a minimum, your dashboard should include rent due, collected and withheld for tax purposes, expenses, court deadlines and copies of served documents. This discipline does not guarantee the absence of disputes, but it prevents a problem in Casablanca, Fez or Nador from remaining unnoticed for several months.