Tourist Tax Morocco: Rates, Calculation and Returns

If you run a guesthouse or let out your riad to travellers, the tourist tax is part of your day-to-day life. It does not directly affect your income, as it is paid by your guests, but it is you who must collect it, declare it and pay it to the local council. It’s a straightforward obligation, provided you organise it properly right from the start.

This guide explains, on the basis of Law No. 47-06 on local authority taxation, as amended by Law No. 07-20, who is liable, how the tax is calculated, what rates are set out in the law, and what your reporting obligations are.

In short : The tax applies to tourist accommodation establishments and other forms of tourist accommodation governed by Law No. 80-14. It is payable per person per night, with children under the age of 12 being exempt. For guesthouses, the law provides for a range of 15 to 30 dirhams ; for riads and houses let to tourists, from 10 to 25 dirhams. The exact amount is set by each local authority. The operator invoices it separately, pays it into the local authority’s account every quarter and submits an annual return by the 1st^er April.

Who is affected?

Under Article 70 of Law No. 47-06, the tourist tax is levied on tourist accommodation establishments and some other forms of tourist accommodation governed by Law No. 80-14, whether they are operated by natural or legal persons. It is added to the cost of accommodation.

This includes, in particular, hotels, guesthouses, riads and properties let to tourists, hotel clubs, holiday villages and holiday residences. To find out whether your type of letting falls within the scope of Law No. 80-14 and what authorisations it requires, see our article on the Airbnb regulations in Morocco.

The exemption

The law provides for a single exemption: those children under the age of twelve (Article 71).

How is the tax calculated?

The tax is payable per person, per night, in accordance with the rate applicable to the establishment’s category (Article 72). The calculation is therefore simple:

Tax = number of people aged 12 and over × number of nights × local authority rate

Example of the method: a couple and an eight-year-old child are staying for three nights in a guesthouse. The tax is calculated on the basis of two people and three nights, i.e. six taxable nights’ accommodation, multiplied by the rate set by the local authority for guesthouses.

The rates laid down by law

Article 73 sets out, for each category, a range per person per night, within which each local authority sets its own rate:

• Guesthouses, conference centres and venues, luxury hotels : from 15 to 30 dirhams; ;
• Riads and houses let to tourists : from 10 to 25 dirhams; ;
• 5-star hotels : from 10 to 25 dirhams; ;
• 4-star hotels : from 5 to 10 dirhams; ;
• 3-star hotels : from 3 to 7 dirhams; ;
• 2-star and 1-star hotels : from 2 to 5 dirhams; ;
• Hotel clubs : from 10 to 25 dirhams; ;
• Holiday villages : from 5 to 10 dirhams; ;
• Holiday accommodation : from 3 to 7 dirhams; ;
• Other establishments and types of tourist accommodation : from 2 to 5 dirhams.

The rate applicable to Marrakech

The exact amount is set by a municipal order, issued following deliberation by the municipal council, within these ranges (section 168 of the Act). Check with the Marrakech local authority’s tax assessment department, or with your accountant, to find out the current rate for your category before setting your prices.

Your obligations as an operator

Collect and invoice

The operator is collection manager the tax to its customers. Invoices must show the amount of tax separately (Article 76). If you sell via online marketplaces, check how the tax is shown and collected: you remain liable to the local authority.

Pay quarterly

The amount collected is paid voluntarily to the municipal treasurer’s office or to the public accountant responsible for collection, every quarter, by the end of the month following the quarter. The payment is based on a statement drawn up in accordance with a template provided by the authorities, specifying the number of guests and nights.

• 1^er quarter: by 30 April; ;
• 2^e quarter: by 31 July; ;
• 3^e quarter: before 31 October; ;
• 4^e quarter: by 31 January.

Submit a declaration every year

Before the 1^er April Each year, the operator must submit a declaration to the local authority’s tax assessment department, using a form provided by the administration, stating the number of customers welcomed over the past year and the number of nights’ accommodation (Article 74).

Report changes

In the event of a sale, cessation, transfer of business or change of legal form, a declaration must be filed with the 45 days. In the event of the operator’s death, his or her beneficiaries have three months (Article 75).

Managing the tourist tax on a day-to-day basis

• Keep a reliable record stays: dates, number of guests, children’s ages. It is used both for the tourist tax and for your other obligations as an accommodation provider.
• Include the tax in your prices by clearly setting it out separately, to avoid any misunderstandings with your customers.
• Set aside the tax collected in a separate account or line item: this is not your turnover.
• Set a date the quarterly deadlines and the annual return, with your accountant or advisor.
• Keep your supporting documents payment records: these will be requested during an inspection and are invaluable when selling a riad that is currently in operation.

For a prospective buyer, tourist tax returns are, in fact, a good indicator of a guesthouse’s actual level of business. If you are considering taking over or setting up a guesthouse, our article on the Profitability of a riad guesthouse with Marrakech will help you formulate your hypotheses.

Tourist tax and other taxes payable by the accommodation provider

The tourist tax is just one of the obligations faced by a guesthouse operator. Depending on its circumstances, a guesthouse may also be liable for income tax or corporation tax, VAT, business rates and local services tax. For an overview of Marrakech letting models and their requirements, see our guide to’1-bedroom, 1-bathroom rental property.

Frequently Asked Questions

How much is the tourist tax at a guesthouse in Morocco?

The law stipulates a range of 15 to 30 dirhams per person per night for guesthouses. The exact rate is set by each local authority.

Do children have to pay tourist tax?

No, children under the age of 12 are exempt. This is the only exemption provided for by law.

When must the tourist tax be paid?

Every quarter, by the end of the month following the quarter. An annual declaration of the number of guests and overnight stays is also due by the 1st^er April.

Does this apply to a riad rented on a whole-property basis?

Yes, where it relates to tourist accommodation governed by Law No. 80-14. The law sets a rate of between 10 and 25 dirhams per person per night for riads and houses let to tourists.

Who pays the tourist tax: the guest or the owner?

The customer pays it, as it is added to the cost of accommodation, but it is the operator who collects it, includes it on the bill and pays it to the local authority.

Are you planning to build a guest house?

We can help you identify the right riad for your project and plan for the operational requirements involved. Contact Klair & Arno.