Finance

MRE Retirees: basic pensions fully exempt from income tax in Morocco since January 2026

14 April 2026·2 min read·Source: LesMRE

The 2026 Finance Law fully exempts basic retirement pensions (CNSS, CMR, RCAR) from income tax in Morocco. A measure that makes retiring in Morocco even more attractive for MRE.

What changes from 1 January 2026

Basic retirement pensions paid by CNSS, CMR and RCAR are now fully exempt from income tax in Morocco. This measure, introduced by the 2026 Finance Law (amendment to Article 57-27° of the General Tax Code), ends the taxation that previously applied to these pensions.

Only individual supplementary pensions remain subject to income tax, after a 60% allowance.

Practical impact for an MRE retiree

An MRE retiring in Morocco and transferring foreign pensions to non-convertible dirhams benefits from cumulative advantages: full exemption on Moroccan base pension, 80% reduction on foreign pensions transferred permanently, and 40% allowance on gross taxable income.

In practice, an MRE retiree with a French pension of EUR 1,600/month and CNSS of MAD 2,200/month pays close to zero income tax in Morocco, compared to around 11% in France.

CNSS threshold lowered to 1,320 days

Since 1 May 2025 (Law 02.24), the minimum threshold for a CNSS pension dropped from 3,240 to 1,320 days of contributions (about 4 years). This measure is retroactive to 1 January 2023.

Why Morocco attracts MRE retirees

The combination of tax advantages, lower cost of living, accessible AMO coverage, and proximity to Europe makes Morocco one of the most advantageous retirement destinations for MRE. A retired MRE in Morocco can reduce their tax bill by 5 to 10 times compared to France.

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