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The tax system is guided by Morocco and the French have considerable complexities. We always consult and work closely with our international tax advisors before offering our investors strategies for reducing taxes.
The government incentives for buyers in the UK include:
- 0% tax on rental income during the first 5 years
- 0% of taxes on capital gains if the profit is below 40K pounds or after 10 years of ownership
- 0% tax on estates when a property becomes another family member
- 100% repatriation of funds from the sale
The following is a very basic guide about the tax implications for investors in the UK.
STRATEGY TO BUY AND SAVE / RENT
PERSONAL INCOME TAX REVENUES BY RENTALS (IGR)
Investors from the United Kingdom using a strategy of buying for rent will have to pay taxes on this income. In Tangiers 66% of this income pay a tax of 22% (other parts of Morocco pay 44%). The city of Tangier is a 50% reduction on the rental income, thereby adding another advantage for investment in Tangier.
There is also a three-year exemption for the first three years in which owns the property.
PROPERTY TAXES (Taxe Urbaine) (Option holiday house staff)
The property taxes are paid annually. The first five years the owners are fully exempted. (Agencies property are not included). After 5 years, the tax is basa on the value of annual income for housing.
CORPORATE TAX
If you intend to buy a number of properties Moroccans, you might want to consider establishing a Limited Company Moroccan - the time it takes to mount a Moroccan Society Limited (SARL) is usually three weeks.
TREATY OF UNITED KINGDOM - MOROCCO
There is a double tax treaty between the United Kingdom and Morocco ensuring that investors do not pay IBI in both countries.
TAX HERENCIAS
This tax is 0% for family members. Always obtain professional advice before implementing any strategy with regard to inheritance tax.
The most important advice you can give on this subject is: Make a testamento Marroquí!
EXEMPTION OF IBI
When the property is sold after the owner for more than ten years.
When it has owned for more than 5 years but less than ten years. In this case the tax CFI (IBI) will be 10% of any capital profit that exceeded 1 million dirhams.
STRATEGY TO BUY SELL
REAL ESTATE TAX BENEFIT (Taxe sur les Profits Immobiliers - CFI)
The tax benefits of real estate is 20% of the benefit with a minimum of 3% of the selling price of housing. The CFI (IBI) se basa en el selling price minus the purchase price.
The purchase price includes the following:
- Expenses credits
- Costs for registration
- Minutes notary and taxes
- Repairs
- Minutes of Managers
- Inflation (based on a table of government)
The second option for calculating the purchase price is to add a 15% to the sale price. This option is used when there are no invoices to justify the expenses.
TAX COLLECTION OF RUBBISH (Fiscalite des collectivites local)
There is a 5-year exemption from tax of garbage, which is set at 10% of the annual value of rental housing.
TAX ON THE RENTAL HOUSING (Taxe Urbaine) (option investor)
Investors pay 13.50% on the value of rental housing. |
