Financial Benefits
 
Tax
The Morocco tax system is modelled after the French system and has quite a few complexities. We always consult and work closely with our international tax advisers prior to offering our investors tax reduction strategies. The following information is a very basic guide to the Morocco tax implications for UK investors:

PERSONAL INCOME TAX ON RENTAL INCOME (IGR)
UK investors utilizing a buy-let strategy will be responsible to pay tax on this income. In Tangier 60% of this income is taxable at 22% (other parts of Morocco are taxed at 44%). The city of Tangier has a 50% reduction on rental income tax adding yet one more advantage to invest in Tangier.
 
There is also a three-year exoneration for the first three years the property is owned.
 
PROPERTY TAX (Taxe Urbaine) (Personal vacation home option)
Property taxes are paid annually. The first five years owners have full exoneration (Property agencies are NOT included). After 5 years the tax is based on the property's annual rental value.
 
There is a 75% discount if the home is your permanent or vacation home residence.

PROPERTY RENTAL TAX (Taxe Urbaine) (Investor option)
Investors pay 13.50% on the rental value of the property.
 
CAPITAL GAINS TAX (Taxe sur les Profits Immobiliers - TPI)
Capital gains tax is 20% of profit with a minimum of 3% of the sale price. TPI is based on the sale price less the purchase price.
 
EXONERATION FROM CAPITAL GAINS
The property is sold after owning it for more than ten years.
The property is owned for more than 5 years but less than 10 years. In this case the TPI tax 10% of any capital gain over 1 million Dirhams.
 
INHERITANCE TAX
This tax is 0% for family members. Expert advice should always be obtained prior to implementing any inheritance tax planning strategies. The most important piece of advice we can offer on this subject is – make a Moroccan will!
 
UK-MOROCCO TREATY
There is a double tax treaty between the UK and Morocco that ensures investors do not suffer Capital Gains tax in both countries.