Furnished Rental Depreciation in Morocco: What UK Investors Should Know (2026)

Depreciation, writing down the value of a building and its furnishings against rental income, is one of the most powerful levers for a furnished-rental owner in Morocco. But it is a Moroccan mechanism, available when you hold through a company subject to Moroccan corporate tax. It is not a UK regime, and a British investor should not expect to “amortise” a Marrakech apartment the way a continental scheme might suggest. This guide, drawing on more than 25 years of expertise, Armonia Solutions, explains how depreciation actually works on furnished rentals in Morocco in 2026, who can use it, and how it sits beside the very different UK tax treatment of let property.

All Moroccan figures below are local facts that apply regardless of the owner’s nationality. Dirham amounts are shown with an approximate US dollar equivalent for convenience.

Key figures of furnished-rental taxation in Morocco (2026)

Figures are indicative for 2026 and follow Moroccan tax rules; confirm your own position with a Moroccan adviser.

Depreciation in Morocco, and why it is a Moroccan mechanism, not a UK one

In Morocco, an owner who holds furnished property through a company subject to corporate tax (IS) can depreciate the building (excluding land) and the furnishings, deducting a portion of their value each year against rental profit. This reduces the taxable base for as long as the depreciation runs, which is why structuring the holding correctly matters so much. Crucially, depreciation is an accounting and tax feature of the Moroccan company route, it is not something a private individual taxed under the simple 40% flat-allowance method accesses in the same way.

UK investors should be clear about the contrast. The United Kingdom does not offer a depreciation regime for residential let property. The Furnished Holiday Lettings (FHL) regime, which once allowed capital allowances on fixtures and furniture, was abolished from 6 April 2025 (1 April 2025 for corporation tax). UK landlords now rely on “replacement of domestic items relief”, which lets you deduct the cost of replacing movable items like beds, sofas and appliances, but does not let you write down the property itself. In short, the depreciation advantage discussed here is specifically Moroccan, accessed through a Moroccan company, and has no UK equivalent for residential lettings.

Depreciation rates accepted in Morocco: the reference table

Land is never depreciable, so the building value must be separated from the land value in the deed or by valuation. Straight-line depreciation spreads each asset’s cost evenly over its useful life. The rates above are the customary Moroccan references; a Moroccan accountant will set the precise schedule for your company.

Two routes: holding as an individual or through a company

As an individual, Moroccan furnished-rental income is typically taxed under income tax (IR) with a 40% flat allowance, so the taxable base is 60% of gross rent, subject to the progressive scale and the 40,000 MAD (about $4,000) exemption threshold. It is simple, but it does not give you depreciation. Through a company subject to corporate tax (IS) at 20%, you can deduct real expenses including depreciation, which often produces a lower effective tax bill once a property is meaningfully furnished and financed, at the cost of accounting obligations and a minimum contribution. The right route depends on your rental income level, your financing, and how long you intend to hold.

How depreciation works through a Moroccan company

Inside an IS-liable company, you record the building and furnishings as assets and depreciate them each year at the accepted rates. Suppose the building is valued at 1,800,000 MAD (about $180,000) and the furnishings at 200,000 MAD (about $20,000). At 4% on the building and 20% on the furniture, the company books roughly 72,000 MAD plus 40,000 MAD, about 112,000 MAD (about $11,200) of depreciation in the year, deducted from rental profit before the 20% corporate tax applies. The benefit tapers as assets are written down, so depreciation is strongest in the early years of ownership.

Illustrative example (simulation): a furnished apartment in Marrakech (Guéliz)

Illustrative example (simulation), indicative figures, not a real client case.

James, a British investor based in Leeds, buys a furnished two-bedroom apartment in Guéliz for 2,200,000 MAD (about $220,000), of which 1,800,000 MAD (about $180,000) is the building and 200,000 MAD (about $20,000) is furnishings; land is valued separately and is not depreciable. He holds it through a Moroccan company subject to IS. Gross annual rent is 180,000 MAD (about $18,000). After deducting running costs and about 112,000 MAD (about $11,200) of first-year depreciation, the taxable profit is sharply reduced, and the 20% corporate tax applies to that smaller base. Back in the UK, James reports his worldwide income and claims relief under the UK–Morocco tax treaty, but he gets no UK depreciation, the write-down is purely a Moroccan benefit. The figures are illustrative; your accountant will compute the exact schedule.

The short-term rental case (Airbnb)

Short-term furnished letting on platforms like Airbnb is popular in Marrakech, Agadir and Taghazout, and it interacts with the same Moroccan rules. Tourist accommodation must be properly registered, and income is declared in Morocco. Held through a company, the depreciation logic above applies to the apartment and its furnishings just as it does for longer lets. The main differences are operational: higher turnover, more wear on furniture (which is why the 20% rate on appliances and bedding matters), and stricter record-keeping of nightly revenue. The Moroccan tax treatment of the income does not change because the let is short-term; the platform simply changes how you market and manage it.

Simulator: estimate your depreciation

Enter your building value and furnishings value in Moroccan dirhams (MAD). The tool applies an indicative 4% to the building and 20% to the furnishings and shows your approximate first-year depreciation, with a US dollar equivalent. It is an indicative aid, not tax advice.

Best practices and common mistakes

The strongest depreciation claims rest on discipline. Separate land from building in the deed or by independent valuation, because land cannot be depreciated. Keep every invoice for furniture and equipment, dated and itemised, so each asset has a clear cost base. Do not over-state useful lives to inflate the rate, and do not depreciate assets you also try to expense outright. A frequent error among foreign owners is to assume that a depreciation regime from their home country, or an old idea of a holiday-let allowance, carries over to Morocco; it does not. Equally, do not assume the Moroccan company route is always cheaper: below a certain rent level the individual 40% allowance can win. Model both before deciding.

What UK investors should know: no FHL depreciation back home

Because the UK abolished the FHL regime in 2025, a British owner cannot replicate the Moroccan depreciation benefit on the UK side of their tax return. UK let property now sits in the ordinary property-business rules: finance-cost relief is restricted to the basic rate, capital allowances on furniture are gone for residential lets, and relief on furnishings comes only through replacement of domestic items. This makes the Moroccan structure decision more important, not less: the depreciation you can access is Moroccan, so the value of holding through a Moroccan company has to be weighed in Morocco, while your UK reporting runs in parallel under the treaty.

Choosing your holding horizon

Because straight-line depreciation is heaviest in the first years and tapers as assets are written down, your intended holding period shapes how much value the mechanism delivers. An owner planning to keep a Marrakech apartment for ten or fifteen years captures the full depreciation of the building and several cycles of furniture renewal, smoothing taxable profit across many years. A shorter horizon front-loads the benefit but raises the question of what happens on sale: the company’s net book value, the gain, and any restructuring all need planning before you buy, not after. Furnishings depreciate fastest, so a refurbishment-and-relet strategy, replacing tired items every few years, keeps a steady stream of deductible expenditure while protecting the property’s appeal to guests. Decide your horizon early, because it drives whether the company route and its accounting overhead are worth it, and how aggressively you furnish. A British owner used to short UK tax-year thinking should deliberately adopt this longer Moroccan asset view.

Documentation: the foundation of any depreciation claim

Depreciation lives or dies on paperwork. Maintain a fixed-asset register listing each item, its purchase date, cost and depreciation rate. Keep the notarised deed showing the building/land split, supplier invoices for all furnishings, and the company’s annual accounts prepared by a Moroccan accountant. For short-term lets, retain platform statements reconciling declared income. Good records protect the deduction if questioned and make the eventual sale or restructuring far smoother. Sloppy documentation is the single most common reason a legitimate depreciation deduction is challenged.

A British investor’s view: bridging two tax cultures

British investors often arrive in Morocco with instincts shaped by a system that has steadily stripped tax advantages from let property, the wear-and-tear allowance gone, the FHL regime abolished, finance relief capped. It can feel surprising, then, that Morocco still rewards genuine investment through company-level depreciation. The cultural adjustment is partly about patience and presence: Moroccan tax practice values properly kept books, a real local accountant, and a long-term relationship with the property rather than a quick paper optimisation. Where a UK landlord might think in single tax years and online filings, the Moroccan approach rewards a multi-year asset view, careful documentation, and respect for local procedure. Bridging the two cultures, UK reporting discipline with Moroccan structural planning, is exactly where a British owner gets the most from a Marrakech or Agadir property.

Frequently asked questions

Can I depreciate my Marrakech apartment as a UK individual? Not on your UK return. Depreciation is available through a Moroccan company subject to corporate tax; the UK no longer offers depreciation for residential lets.

Does the UK FHL regime still let me claim capital allowances? No. The FHL regime was abolished from April 2025; new capital allowances on furniture and fixtures are no longer available, replaced by replacement of domestic items relief.

Is land depreciable in Morocco? No. Only the building (excluding land) and the furnishings are depreciable, which is why the land value must be separated.

What rate applies to the building? Typically 4% to 5% straight-line over 20 to 25 years; furniture and equipment run faster, 10% to 20%, and bedding and appliances at 20%.

Individual or company, which is better? The individual route gives a simple 40% flat allowance but no depreciation; the company route allows depreciation and real-cost deductions at 20% IS. Model both for your rent level.

Will I be taxed twice between Morocco and the UK? The UK–Morocco double tax treaty provides relief. Moroccan rental income is taxed in Morocco, and the UK gives treaty relief for UK residents.

Does Airbnb income change the depreciation rules? No. The depreciation logic is the same; short-term letting mainly changes registration, turnover and record-keeping.

What documents must I keep? A fixed-asset register, the deed with the land/building split, all furnishing invoices, company accounts, and platform statements for short lets.

Is the minimum corporate contribution due if I make a loss? Yes. Morocco applies a minimum contribution of 0.25% of turnover (floor 3,000 MAD, about $300), payable even at a loss.

Conclusion

Depreciation can materially lower the tax on a furnished Moroccan rental, but only through the right Moroccan structure, and only as a Moroccan benefit that has no UK counterpart since the FHL regime ended. Separate land from building, hold through an IS-liable company when the numbers justify it, keep impeccable records, and coordinate your UK reporting under the treaty. With more than 25 years of expertise, Armonia Solutions helps international owners in Marrakech, Agadir and Taghazout set up, furnish and manage their rentals the right way. Speak to our team for a tailored review of your situation.

Sources

Internal: Property Investment in Marrakech: Optimise Your Wealth (2026) · How to Declare Moroccan Property and Income in the UK (2026). External: Direction Générale des Impôts (DGI), tax.gov.ma. Further references cited by name: HM Revenue & Customs, abolition of the Furnished Holiday Lettings regime (April 2025) and Property Income Manual PIM3210 (replacement of domestic items relief); Morocco Finance Law 2026.