Property Tax in Morocco
When buying a property in Morocco it is essential that you understand how the tax system works and know exactly what you will be liable for. The team at My Other House are able to offer guidance and advice on tax issues however, it is recommended that you consult an independent tax advisor to discuss the tax implications of your individual situation.
Morocco has adjusted its tax laws in recent years to help the buying process and make the country a more attractive place for foreigners to invest in property.
Below is a guide to help you understand tax in Morocco.
UK-Morocco Tax Treaty
This double tax treaty ensures purchasers do not pay Capital Gains Tax in both countries.
Capital Gains Tax
A tax is levied on any capital gains made on the property and land. Capital Gains Tax is based on the sale price minus the purchase price. After owning a property for 10 years the Capital Gains Tax is zero; if sold within five years the property is liable to 20% tax and if sold between six and ten 10 years the rate charged is 10%.
Inheritance Tax
0%. As long as you make a Moroccan will stating that you wish the property to be passed on to a family member, you will be charged no inheritance tax. Expert tax advice should be sought before implementing any inheritance tax planning strategies.
Property Tax
Property tax is payable annually - the property is exempt from this tax for the first 5 years, after which the amount due is dependent on the total annual rental income, not the value of the property. The table below shows the sliding scale of how the tax is worked out.
| Rental Value in Dirham | Rental Value GBP | Tax rate |
| Less than 3,000dh | Less than £180 | Exempt |
| 3,001 to 6,000dh | £180 to £360 | 10% |
| 6,001 to 12,000dh | £360 to £720 | 16% |
| 12,001 to 24,000dh | £720 to £1,440 | 20% |
| 24,001 to 36,000dh | £1,440 to £2,160 | 24% |
| 36,001dh to 60,000dh | £2,160 to £3,600 | 28% |
| More than 60,000dh | More than £3,600 | 30% |
* Exchange rate offered as a guide only
Maintenance Tax/Garbage Collection Tax
For first 5 years the property is exempt from Garbage Collection Tax, after which time 10% of the property's annual rental income is levied.
Corporate Tax
An attractive route for many people wishing to purchase multiple units and make an income from their property is to form a Moroccan Private Limited Company (SARL). Your solicitor will be best placed to advise you of this.