Property buying environment in Morocco

Buying property in Morocco is currently an extremely lucrative proposition. Since Morocco is well connected with Europe through the flights that operate from there, reaching Morocco is not very difficult. Investors can fly into Morocco and fly out almost the same day, if they wish to do so.

Ever since 1999, Morocco’s King Mohammed VI and the government have had favorable economic and political connections with the European countries in comparison to other North African countries. They have also given a greater impetus to building the economy and have also invested a lot in the infrastructure projects of the country. It has also launched major efforts to attract the tourists to the country. It’s been estimated that this year will see at least 10 million tourists who will visit the country.

Investment Opportunities and Returns
Both foreign and domestic investors are given a lot of opportunities to invest in the country’s Real Estate markets. Of special mention are Tangiers and Marrakech that are witnessing the fastest growth in the real estate development. Investors are bringing in their expertise for building high-end luxury resorts for the tourists. The rental income from the properties is also very good. It’s been estimated that the returns on the properties can fetch the investors at least 15 – 20% in the coming years (YOY growth is 15-20%).

Tax Structure
Moreover, the tax structure for buying and selling properties is extremely conducive.

  • The investors don’t need to pay any Inheritance tax.
  • There is no tax on rental property for the first five years.
  • No Capital Gains tax will be charged if the profit is less than 40,000 UK Pounds. Even if the investor sells the property after 10 years, then there is no Capital Gains tax applicable.
  • When an investor sells the property, they can take 100% funds out of the country if they wish to do so.

Double Tax Treaty
Since a Double Tax treaty with UK is in force, this saves the British investor from the burden of double taxation. As an overseas investor, you should create a Moroccan Private Limited Company (MARL) that will enable you to get the maximum advantages from the Property taxes that are applicable in the country. It’s best to employ a good notary and agent that are conversant with the various laws especially the Taxation laws in regard to the sale and purchase of the properties. This can help you immensely. The various taxes that are applicable for the properties include tax on rental income, Property tax, Property Rental tax, Garbage Collection tax, Capital Gains tax and Corporate tax.

Vision 2010
The Moroccan property market is also set to grow at an astonishing speed since the government has launched the king’s Vision 2010 scheme. The Vision actually revolves around six major building sites and with a massive budget of USD 10 billion, it is an ambitious project that will attract the investors to the property market and also give a great boost to the tourism industry.

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