Morocco
Property related taxation in Morocco
Tax on Rental Income
Investors from the UK looking to operate a buy-to-let strategy with their Morocco based property investment 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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