Moroccan Tax Laws

The aim of this guide is not to be a comprehensive reference on Moroccan Tax Law, but to simply provide you with the most relevant information in relation to property taxation in Morocco.

Costs of Purchase and Moroccan Property Tax

1. Investors should budget for about 5-6% above the purchase price of the property (listed below).

For off plan developments these fees will need to be paid on completion:

Land Registry Fees MAD 150 for the certificate plus 1%
Registration Fee: 2.5%
Notaries Tax: 0.5%
Notaries fees 1%
Sundry Expenses approx MAD 3000
Land Registry Fees 0.5 % plus MAD 75

2. A dual tax treaty exists between Morocco and the UK. This means that you will not pay the same tax in both countries. However personal liability for the difference between the lower Moroccan capital gains tax and the UK’s 40% capital gains tax should be considered if you pay taxes in the UK. UK Morocco Tax Treaty

3. In Morocco capital gains tax runs at 20%, if the property is owned for less than ten but more than five years it is reduced to 10% and is reduced to 0% if the property is owned for more than ten years.

4. There is no inheritance tax.

5. Investors will not have to pay any rental income tax in Morocco for 3 years and thereafter between 22% and 44% on 60% of the rental income.

6. Tax on the rental value of the property is not payable on the first 5 years and thereafter at 13.5% payable annually. Buyers should take their own independent advice in respect of their tax liability.

7. Investors are exempt from rubbish collection tax for the first five years, after this period tax is charged at 10% of the property’s annual rental value.

8. In Morocco you are not allowed the import or export the Moroccan national currency, therefore non-resident foreigners will be required to exchange imported currency at banks and other authorized exchanges. Signing a declaration for the importation of currency upon entry to Morocco allows all or part of this currency to be repatriated. This is extended to repatriation of profits from the sale of a property in Morocco where the investment/property has to be registered at the Moroccan exchange control office prior to purchase, this process should be done by the solicitor undertaking the conveyancing procedure.

Legal Notice: Please note that the above information was correct at the time of publishing and may have changed since then. You are advised to talk to a property solicitor specialising in Moroccan Property Tax laws.

If you want further information on any of the above or want us to introduce you to a Solicitor that can help, please email us on: