TAXES YOU HAVE TO PAY WHEN
YOU BUY A PROPERTY IN MOROCCO
In Morocco, the taxes you are liable to pay depend upon the kind
of property you buy. The percentages refer to the price of your
acquisition, VAT. included (percents according to the price of
your acquisition, V.A.T. included)
House for habitation - 3 years or more terrain
without a building and obligation to build within 7 years:
Register fee: 2.5%
Notarial tax: 0.5%
Funciary conservation: 1% + 150 DH (Property
Act)
Notary’s fee: 1% (no more than 2500 DH)
+ V.A.T. at 7%
Current funciary conservation (if necessary)
0,5 % + 75 DH
Sundries (fiscal stamps etc.) : 1500 to 3000DH.
When you acquire a property without titled deeds, not acknowledged
by the ”cadastre”, you are liable for the registration
fees commensurate with the land area and the value of the property
(sometimes the seller pays a part of this, but normally the buyer
pays all these fees).
Publication rights: 450 DH
Ad Valorem rights: 1.5% up to 50,000dh + 2% above
this
Area rights: 45DH per open area (urban area)
or open hectare (rural area)
Standing charges: 75 DH
Duplicata: 75 DH
Surveyor: approx. 2500DH
Sundries (fiscal stamps etc.): approx. 1500DH
Foreigners are forbidden to buy agricultural terrain. The only
way to legalize this is to change the judiciary status of the
land by declaring it to be ”non-agricultural” terrain.
This often takes a great deal of time. You then have the same
2 options as mentioned previously in order to finalize the purchase.
Buying a property in Morocco post-acquisition taxes
You are liable to pay the following taxes after acquiring property
in Morocco:
”taxe d’édilité” -
10% of the annual interest (depending upon the location and size
of your property). If the property becomes your principal home
you are given a rebate of 75%.
Estate income - If you buy a rented property
or if you decide to rent your home when you are absent, you will
have to declare the income from this as it is subject to general
income tax.
Property profit tax - The taxable rate is the
difference between the cession price (minus cession charges) and
the acquisition price (plus cession charges, investment expenditure
and interest paid as credit loans). The rate is 20%, but the tax
amount due cannot be less than 3% of the cession price.
The seller is not liable to pay this tax if the property has
been his main home for 5 years and the resale price is less than
1.000.000 Dh - 10 years if the resale price is more than 1.000.000Dh.
Investment Property in Morocco
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