Below is important information that every property buyer should know

Taxation

Moroccan tax is based on the French system and is quite complex. We strongly advise all clients to 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 to guide you through the process. Each case is unique and there is no rule of thumb to go by.

Notary Fees for completed properties is approximately 5% of the total purchase price which can be broken down as follows:

Registration/Stamp Duty: 2.5%

Legal/Notary fees: 1%

Titling fees: 1%

Misc: 0.5%

Tax on Rental Income

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.

There is also three year exoneration for the first three years the property is owned.

Tax

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 ask a legal Moroccan in order to seek professional tax advice beforehand. You can ask specific questions or request a call from a tax specialist.

If you are considering investing in multiple properties in Morocco, it might be better to consider creating a Moroccan private limited company. For more information regarding this and other tax questions please contact a tax advisor.

Our services include the following free items

• Notary fees* (compromis de Vente)
• Repairs* (by the developer)
• Local viewing trips** (if you are visiting the property)

* Does not include closing costs the compromis de Vente fees and repairs after snagging are free of charge once you buy a property with us.

** Viewing trips are free of charge and do not require any purchase prior to visitation.