Casablanca Residential Letting: Yields, Taxation and Legal Framework

Legal Framework and Lease Registration

Residential property leasing in Casablanca is governed by Law No. 67-12, which establishes statutory standards for landlord and tenant relationships across Morocco. Under this statute, all residential leases must be set down in a written contract (*contrat de bail*). Verbal rental agreements carry no legal weight in court proceedings. Ownership of real estate is verified through the Agence Nationale de la Conservation Fonciere, du Cadastre et de la Cartographie (ANCFCC), which issues the official property ownership certificate (*certificat de propriete*) linked to the property's land title (*titre foncier*).

To ensure legal protection, lease contracts should be signed and notarised or legalised at the local municipal bureau (*Commune*). Law No. 67-12 obliges landlords to provide livable accommodation with functional utilities, accompanied by a joint inventory report (*etat des lieux*) drawn up at handover. Security deposits collected at lease commencement are restricted by law to a maximum of two months' rent.

Rent Controls and Increase Limits

Initial rent levels for long-term residential lettings in Casablanca are freely negotiated between landlord and tenant at contract signature. However, once the initial contract is established, Law No. 67-12 strictly regulates subsequent rent escalations. Landlords cannot raise the rent arbitrarily during an ongoing tenancy or upon annual renewal.

Statutory rent increases are restricted to a maximum of 8% every three years for residential premises. An increase can only be requested after three full years of continuous occupation from the date of the lease or the previous increase. If a tenant disputes a proposed increase within the statutory limit, the landlord must apply to the Court of First Instance (*Tribunal de Premiere Instance*) to enforce the adjustment.

Short-Let Regulations and Authorisations

Operating short-term or holiday rentals (such as Airbnb platforms) in Casablanca requires explicit regulatory compliance rather than standard residential lease terms. Property owners must obtain authorisation and a rental registration number (*numero d'inscription*) from the Ministry of Tourism alongside municipal approval prior to listing the unit.

All marketing and digital distribution channels must display this official registration number. Operating an unlicensed short-let unit exposes the property owner to administrative fines from local municipal authorities. Furthermore, apartment units within co-ownership buildings (*copropriete*) must comply with building regulations; if the syndicate rules prohibit short-term commercial letting, the co-ownership association can legally block short-term guest operations.

Rental Income Tax Rates for Non-Residents

Non-resident property owners deriving rental income from Casablanca real estate are subject to Moroccan income tax (*Impot sur le Revenu*) managed by the Direction Generale des Impots (DGI). Tax is applied to gross rental receipts without deductions for non-resident private individuals.

For the 2026 tax year, the progressive income tax brackets on gross annual residential rental receipts are:

• Gross annual rental income up to MAD 120,000: Taxed at a flat rate of 10%.
• Gross annual rental income of MAD 120,000 or above: Taxed at a rate of 15%.

In standard long-term leases where the tenant is a corporate entity, tax is withheld at source by the lessee and remitted directly to the DGI. Where the tenant is a private individual, the non-resident owner must submit an annual online property income return and pay the assessed tax directly by the statutory deadline.

Operating Costs and Service Charges

Net rental yields in Casablanca depend heavily on ongoing operational charges and building management fees. In multi-unit developments, service charges (*charges de copropriete*) cover communal maintenance, security, lift servicing and building insurance. These charges typically range between MAD 300 and MAD 1,200 per month depending on the district (such as Gauthier, Maarif, or Anfa) and facility standard.

Property management agencies in Casablanca charge standard fees between 8% and 10% plus VAT of monthly gross rent collected for long-term tenancies. Short-term rental management companies typically charge between 15% and 25% of gross revenue to handle guest turnover, cleaning, marketing and key handover. Annual multirisk home insurance (*assurance multirisque habitation*) ranges from MAD 800 to MAD 2,500 per year.

Notice Periods and Possession Recovery

Recovering possession of a residential property in Casablanca requires adherence to statutory procedures under Law No. 67-12. A landlord cannot unilaterally terminate a lease or evict a tenant without a formal legal order issued by the Court of First Instance.

To recover possession for personal use (or for immediate family members), major structural redevelopment, or demolition, the landlord must serve a formal court bailiff notice giving three months' written notice. If the tenant fails to vacate upon expiry, eviction proceedings must be filed in court.

In cases of non-payment of rent, the landlord must issue a formal notice to pay (*mise en demeure*) via a judicial officer (*huissier de justice*), granting a statutory period of 15 days to settle arrears. If payment is not received within 15 days, the landlord can initiate urgent summary proceedings (*refere*) to obtain an order for lease termination and eviction. Formal court eviction processes in Casablanca typically take between 6 and 18 months depending on court caseloads and appeal stages.

This guide reflects Moroccan tax and tenancy regulations in force for 2026. Local legal counsel should verify contract terms prior to execution.