Jardin de Fleur For Sale in Morocco

Legal and Taxes

Non resident individuals, who invest in real estate situated in Morocco, 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% depending on the region, in Tangier for example 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.

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 nil 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.