Morocco - Investment Tax Planning

Moroccan tax is based on the French system and is quite complex. We strongly advise that all clients seek professional tax advice. This section is designed to give you a brief guideline to Moroccan property tax.

Every tax system is different and the Moroccan system is no exception. With its tax laws left as a legacy from the French colonial days, it is essential to have a professional guide you through the process. Each case is unique and there is no rule of thumb to go by.

For this reason have partnered with independent tax advisors to help you with your potential Moroccan property purchase. To speak with our independent tax experts regarding your tax position, please click here, complete the short form and you will be contacted shortly.

Tax on Rental Income

Investors from the UK looking to operate a buy-to-let strategy with their investment property in Morocco will be required to pay tax on this generated income.
The first three years can be exempt of tax, but afterwards investors must pay tax on 60% of their generated income at levels between 22% and 44%.

In Tangier, for example, a buy-to-let investor would, after 3 years, be subject to a tax of 22% on 60% of the rental income from his buy-to-let investment property in Morocco.

Property Tax

In Morocco, property owners are required to pay an annual property tax. The first five years are exempt. After this, tax is due based on the annual rental value of the property. The table below gives an approximate guide to the taxes due:

Value Tax
Less than 3,000dh 0%
between 3,001 and 6,000 dh 10%
between 6,001 and 12,000 dh 16%
between 12,001 and 24,000dh 20%
between 24,001 and 36,000 dh 24%
between 36,001 and 60,000 dh 28%
more than 60,000 dh 30%

Property Rental Tax

If investors do not live in the property at all, a tax of 13.50% on the rental value is levied.

Garbage Collection Tax

The owner of a property is exempt from the garbage collection tax for the first five years. After this period, tax is charged at 10% of the property's annual rental value.

Capital Gains Tax

If the property is sold within five years, capital gains tax is charged at 20% of profit with a minimum of 3% of the sale price. A property sold between six and ten years of ownership will pay 10% capital gains tax and 0% thereafter. Capital gains tax is based on the sale price less the purchase price.

Inheritance Tax

There is 0% inheritance tax for family members, but it is essential to make a legal Moroccan will and seek professional tax advice beforehand. You can ask specific questions or request a call from a tax specialist by completing the small form above.

UK-Morocco Tax Treaty

There is a double tax treaty in place between Morocco and the UK and this protects the investor from being liable for capital gains tax in both countries.

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.

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