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Buying property and Personal Taxes

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Manek1964

I was reading that if one is residing in Morocco for more than 183 days then one has to pay taxation in Morocco on your Global Income. This is very standard across many countries.


I was also reading that if you own Residential Property in Morocco then you are treated like a Tax Resident and also charged tax on your Global Income even if you are absent in the country or less than 183 days. This is the norm I believe in some countries like the UK, Australia etc.


Here is a summary of what I found in one of the Accounting Firm website - “According to Moroccan law, tax residence is determined by one of the following criteria (in the order listed): The place of permanent home. The centre of economic interest. The duration of stay in the country exceeding 183 days within any period of 365 days.â€


Is this true and if so, won’t this deter people to buy property in Morocco?

Mouad Aktaou

If you are consider as a resident in Morocco you pay tax on your Global income made in Morocco not abroad.

Regarding property that you may own in Morocco it's same taxes regardless your nationality, and you will pay tax on general income coming from renting your property or any activity in Morocco only.

There is some international convention between morocco and other countrie regarding no double taxation, so you won't pay tax in your home country and here.

I will be delighted to answers to your queries if needed.

Best,

Loboshin

@Mouad Aktaou


I am a US citizen and I have already bought an apartment and am planning to use Airbnb.  The income generated here will be deposited directly into the Moroccan CFG Bank.  I don't plan on taking all my income to the US, but I want to know if I have to pay Moroccan income tax and US tax at the same time.  And I would be very grateful if you could tell me what the Moroccan income tax is.

GuestPoster65

@Loboshin


The Moroccan income tax depends of your level of revenue and the kind of revenue, so you can't give it "in general". AirBnB are considered are touristic locations and subjected to specific taxes (even if most of the people don't pay them).

Taxes on locations are 10% under 120.000 dirhams/year, 15% over 120.000 dirhams

Also, as you rent a furnished flat, you have to pay VAT (but you can deduct VAT on purchases).


There are different way to optimize your taxes in such conditions, it can be interesting to create a society. Feel free to ask :D

Loboshin

@MA_O_Maroc


Could you explain more about this statement:

--- as you rent a furnished flat, you have to pay VAT (but you can deduct VAT on purchases) ?


Does it mean that I could buy my apartment in Marrakech without VAT since I'm planing to do Airbnb?


Thanks in advance!

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