As its tourism popularity becomes stable and steady, Morocco is also becoming a secure property investment destination in the world today. The industry of tourism has greatly dawned into a beautiful market since the Azur Plan of King Mohammed in 2010. Through this, the real estate market has become steadily booming with high demand in rental properties year by year. Moreover, Morocco is tourist friendly in a sense that the cost of living in its various cities is low and highly attainable. Hence, everything follows from this stability in the economy. And if you are planning on taking chances in the real estate market of Morocco, you can invest soundly by dispersing as low as fifty percent value in comparison to other European and American destinations.
Once you purchase a property in Morocco, it is important to be knowledgeable with every detail concerning your real estate business. In this case, you will have to learn about the tax system in the country and of course including tax benefits, gains in tax benefits as well as some other tax information that concerns your property.
Morocco’s general tax system
There are a lot of things that you need to know about the general taxation of Morocco. As an investor, you must equip yourself with relevant information concerning your property since paying of taxes is a responsibility. The registration tax in Morocco is set at 2.5% part of the declared property value which includes the deeds of the land intended to perform construction operations. On the other hand, there is also the so-called rental income tax is the tax investors pay for the rent of their property. Properties that are bought for the purpose of having it rented are exempted in the first three years of operation. The good thing about buying properties intended for rental is that the rental income tax is discounted for up to fifty percent if the property is located with Tangier. In addition to the registration and rental tax, Morocco is also implementing its municipal property tax which involves the exemption of the full tax for the first five years of the property. When the five year ends, the tax to be paid will amount to the 13.5% of the property. On the other hand, 75% is reduced if the property is intended as a residence or holiday home. Capital gains tax and refuse collection taxes are also imposed on real estate property owners. The former amounts to the 20% part of the profit while the latter is only the 10% of the property rental value. However, Morocco has tied up with Britain to form a treaty called the UK-Morocco Treaty which involves the elimination of double taxes for property owners. Generally, the Moroccan tax structure is complicated. In this case, for you to get a full understanding on the specificities of the tax system, it is important to seek guidance from a professional.
Once you have a full and ready knowledge of the tax system of Morocco, you can be sure to have a steady life whether the property that you will buy is to be rented or inhabited.
Filed Under: About Morocco