Tax on an off-plan purchase in Morocco: the questions to ask your tax adviser

What we do, and what we do not do

We are not tax advisers, and this page deliberately contains no rates and no rules: it is there to prepare your appointment with a professional.

The tax treatment of a purchase depends on where you are tax-resident, on your nationality, on how you hold the property (in your own name, jointly, through a company) and on what you use it for. Two buyers in the same development can therefore get different answers.

What we do: hand you the information on the development and the contract that your adviser needs, and encourage you to consult them before reserving rather than afterwards.

The questions to ask before you reserve

Do this before reserving: some decisions, such as how you hold the property, are made before signing.

• In which country or countries am I taxable, and on which income or gains linked to this property?
• Does an agreement between Morocco and my country of residence apply to my situation?
• What taxes or duties should I plan for when buying, while holding the property and when selling?
• Do I have to declare this property, or the money transferred, in my country of residence?
• Is it better to hold the property in my own name, jointly or through a company?

While you hold the property: letting and running costs

If you plan to let the property, have your adviser explain how rent will be taxed and which costs can be taken into account, in Morocco and in your country of residence.

• Where, and by whom, must rental income be declared?
• Which expenses (management, maintenance, co-ownership charges, insurance) can be deducted?
• Which local taxes does the owner owe, even when the property is not let?
• Which papers must I keep, and for how long?

On resale and when passing the property on

Ask at the time of purchase what will happen on resale or if you pass the property on to relatives, because the initial choice can weigh on what follows.

• How would any gain be treated, in Morocco and in my country of residence?
• Does the length of time I hold the property make a difference?
• How would the property pass to my relatives, and with what consequences?
• Does buying jointly change the answer?

Preparing the meeting with your adviser

Arrive with the development, the price, the payment schedule, the draft preliminary contract and the list of questions above: your adviser will be able to answer precisely.

What we make available to you

• The name of the development and of the developer, and the price of the unit
• The payment schedule and the announced delivery date
• The draft preliminary contract
• The costs quoted by the developer and by the notary, as they were communicated to us in writing

One adviser or two?

Depending on your situation, it may help to consult an adviser who knows both Morocco and your country of residence, or two advisers who talk to each other. Start by asking whether they are comfortable with this kind of case.