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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.
Investors can be exempt from paying tax for the first 3 years but there after would be required to pay tax on 60% of their generated income at between 22% and 44%.
In Tangier for eample a "buy to let" investor would after 3 years be required to pay 22% on 60% of the generated rental income from his "buy to let" investment property in Morocco.
Property Tax
Property owners are required to pay property tax annually in Morocco. There is an exemption for the first 5 years but after this tax is due based on the annual rental value of the property as per the table below:
| 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
Investors pay 13.50% on the rental value of the property.
Garbage Collection Tax
There is a 5 year exemption from the garbage collection tax, after this period tax is charged at 10% of the property's annual rental value.
Capital Gains Tax
Capital gains tax is charged at 20% of profit with a minimum of 3% of the sale price if the property is sold within 5 years. If the property is sold before 10 years capital gains is charged at 10% and 0% after 10 years. 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 that you make a Moroccan legal will and seek professional tax advice. You can ask specific questions or request a call from a tax specialist by completing the small form above.
UK-Morocco Tax Treaty
The UK and Morocco share a doulbe tax treaty that ensures investors do not suffer Capital Gains tax in both countries. |
