Morocco has a treaty since 1977, no totalization agreement, and rates reaching 37%.
There is a US–Morocco income tax treaty in force since 1981, so Moroccan income tax actually paid is creditable. There is no totalization agreement, so US self-employment tax at 15.3% applies with no relief — a growing issue as more Americans in Morocco work as freelancers and remote contractors rather than employees.
Tax snapshot — Morocco
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Sources: IRS Publication 54; IRS Publication 901; US–Morocco income tax treaty (1977, in force 1981); SSA totalization agreement list; Rev. Proc. 2025-32. Checked 20 September 2026.
What that means on your return
Freelance and remote-contract work is common among Americans in Morocco, and with no totalization agreement the 15.3% self-employment tax applies to net self-employment income in full, regardless of what the exclusion does to income tax.
Moroccan rates reach 37% for tax year 2026, high enough that the foreign tax credit usually beats the exclusion for salaried employees — the opposite of the calculation in a no-tax Gulf state.
The treaty dates from 1977 and carries the provisions of its era; a position that relies on a modern treaty mechanism should be checked against the actual article rather than assumed.
Real estate held directly — common among retirees and long-stay residents — is not itself reportable on the FBAR or Form 8938, but rental income is Schedule E, and the Moroccan bank account used for it counts toward the FBAR's $10,000 aggregate threshold like any other account.
Questions I get about Morocco
Do I pay US self-employment tax on freelance work in Morocco?
Yes. There is no US–Morocco totalization agreement, so 15.3% self-employment tax applies to net self-employment income with no relief.
Does the treaty stop me being taxed twice on my Moroccan salary?
It addresses double income tax — Moroccan tax actually paid is creditable on Form 1116 — but the treaty dates from 1977, so its provisions are narrower than a modern treaty's. Check the actual article before relying on a specific position.
I own an apartment in Morocco. Does that change my filing?
Directly held real estate is not itself reportable on the FBAR or Form 8938, but rental income is Schedule E, and the Moroccan bank account you use for it counts toward the FBAR's $10,000 aggregate threshold like any other account.
When is my return due?
15 June, under the automatic extension for filers living abroad. Form 4868 moves it to 15 October, and I file the extension free.
Do I have to file an FBAR for my Moroccan bank account?
If your foreign accounts together passed $10,000 at any point in the year, yes. You can file it free through FinCEN's own system. The non-willful penalty for not filing is $16,536.
I have not filed for several years. What now?
The Streamlined Foreign Offshore Procedures: three returns, six FBARs and Form 14653 certifying non-willfulness. Penalties are waived. Note that the IRS terminated the separate Delinquent FBAR Submission Procedures around 1 July 2026.
Filing from Morocco this year?
Twenty minutes with the Enrolled Agent who will prepare and sign it. Complete return, $599.
An IRS Enrolled Agent working only on US tax for Americans living abroad. I prepare and sign every return myself — 17 years in practice, 12 of them as an Enrolled Agent.