Property Taxes In Morocco

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Morocco, in its 2010 Vision, has placed huge emphasis on tourism which will result in greater foreign investment in real estate. Property taxes in Morocco are a consideration for investment there. While Morocco’s property taxes may seem complicated, they are fairly flexible and support investment.

Morocco’s property tax system is a legacy of its French colonial era. Since the Moroccan property tax system is rather complex, it is advisable to seek professional advice.

Some salient features of property taxes in Morocco:

• 0% tax on rental income for the first 5 years
• 0% capital gains tax if profit is under the £40K or after 10 years of ownership
• 0% inheritance tax when a property passes to a family member
• 100% repatriation of funds when you sell

As a further incentive for British investors there is a Double Tax Treaty with the UK which prevents double exposure to property taxes in Morocco and the UK.

The various types of Property Taxes in Morocco include:

• Tax on Rental Income
• Property Tax
• Property Rental Tax
• Garbage Collection Tax
• Capital Gains Tax
• Corporate Tax

If you are considering investing in multiple property units in Morocco, it may be an idea to consider creating a Moroccan private limited company (SARL) to maximize benefits from Moroccan property taxes.

Will it may seem like there are several property taxes one is exposed when investing in Morocco. However, the property taxes in Morocco include several exemptions too. There is no rule of thumb and a good tax advisor will be able to reduce exposure to property taxes considerably in Morocco. The five year moratoriums in many categories of property taxes in Morocco give a window to optimise investment. Further if you compare the huge yield accrued by property investment in the country, (in some cases up to 1,500% in six years) property taxes in Morocco seem a negligible cost on investment.