Income tax on property income applies to any French national living abroad who owns a property which they let out or make available (even free of charge) to people other than their parents or children.

Tax rates:

Gross annual taxable property income, provided it does not exceed thirty thousand dirhams, is exempt from income tax. However, this exemption cannot be combined with the tax-free allowance available to the taxpayer for other types of income.

The income tax rate is:

• 10 per cent for gross taxable property income of less than 120,000 DHS;

• 15 per cent for gross taxable property income of 120,000 DHS or more.

Statements

MREs are required to submit their annual property income tax return to the tax authorities electronically and to pay the tax due by 1 March of the year following that in which the income was received. This return must include the following information:

• The first names and surnames of each tenant;
• The location of each let property, its description and the municipal services tax reference number;
• The gross annual rent;
• The amount of tax deducted at source on property income, where applicable.

Important: This declaration is also compulsory for those receiving property income whose annual net taxable amount does not exceed 30,000 dirhams, where they are exempt from income tax under the progressive tax scale.

• Pension from a foreign source
• Capital gains on property