About Us Contact Us Site Map

Property ownership

The costs of owning a property in Morocco depend on the type and size of the property, its location, and other individual circumstances. However, as a general guide, owners should bear in mind the following:

• Rental income - net rental income is obtained by taking 40% off the gross rental income. The tax rate rapidly progresses from 13% to 44%, so that the top rate of tax is actually 26.4% of gross income. To encourage buy-to-let purchases, there is no rental tax to be paid for the first five years of ownership.
• Property tax - property tax is assessed on the rental value of the property. The general property tax rate is 10% of the assessed rental value, as determined by the local tax authorities. If the property is used as a prime residence, only 25% of the assessed rental property value is subject to tax.
• Capital gains tax – (referred to as ‘taxe sur les profits immobiliers’ or TPI in Morocco when pertaining to profits made on property) is levied at 20% if the property is sold within five years; at 10% after five years on profits over about €86,000; and 0% after ten years.
  
  A double taxation treaty between Morocco and the UK means that capital gains tax does not have to be paid in both countries.
• Inheritance tax - there is no inheritance tax to be paid on properties left to a family member in Morocco.
• You will be liable for annual local taxes for matters such as refuse collection, water supply, etc. (similar to the UK’s council tax) but these are relatively low.
• Running costs - if you buy a property within a development, you will normally have to factor in a maintenance cost of around €50 a month. Utilities will of course be on top of this.
  

Related items

Documents and Reports

	Morocco property investment report (386Kb)
	Morocco country guide (954Kb)
	Morocco property buying guide (828Kb)
Documents and Reports

Other related pages

Bookmark with:	What are these?
DeliciousDiggredditFacebookStumbleUpon