If you buy or inherit a property in Morocco, there are ongoing obligations that you need to meet to ensure that you continue to comply with Moroccan law.
Insurance
It makes sense to insure your property and contents.
Real estate Tax (Taxe d’habitation/taxe des services communaux)
This is normally paid annually in one lump sum. The amount will depend on the location, size and age of the property.
Utilities
You will be responsible for the utility charges – electricity, gas, water sewerage, rubbish collection etc. from the time that you buy the property.
Community Charges
You should pay these otherwise the property can be confiscated and auctioned in order to settle the debt.
Income Tax
If you are resident in Morocco, you must declare any income you have earned in Morocco. This applies even if you receive this income by renting out to people from your home country and the money never touches Morocco.
Depending on your citizenship and on the fact that the Moroccan authorities are bound by an international tax agreement, you will also normally have to declare this income in the country where you are tax resident but can normally offset the tax paid in Morocco through Double Taxation Treaties.
Moroccan Tax residence
The taxes that you pay when you buy a property in Morocco will normally depend on whether you are tax resident there or not.
Factors that may indicate that you will be considered tax resident in Morocco include:
How long you spend in Morocco each year – If it is 183 days or more a year (not necessarily continuously), you are likely to be tax resident there.
If your main home is in Morocco – then you are likely to be tax resident there.
If your immediate family (spouse and dependent children) are based in Morocco – you are likely to be tax resident there.
If your main economic interest is in Morocco – you are likely to be tax resident there.
If you do become tax resident in Morocco, then you will normally stop paying taxes in your home country and start to pay taxes in the new country.
Do not be tempted to have selective amnesia when it comes to declaring taxes the authorities in both Morocco and the UK are clamping down on people who do not do not do things properly.
Sometimes you should declare something for tax purposes in one country and also in another. Morocco and the UK have a Double Taxation Treaty which means that you don’t normally pay tax twice and can offset the tax paid in the other country against the tax that you would otherwise pay in your home country
Need help with owning property in Morocco?
Our UK-based team of property lawyers are highly experienced in helping clients who have bought or inherited property in Morocco, including dealing with ongoing costs and legal issues involved in Moroccan property ownership.
With a thorough understanding of both UK and Moroccan law, we can provide clear, reliable legal guidance in plain English, giving you the confidence to deal effectively with any property you own in Morocco.
Call: 01438 840 258 Email: admin@judicaregroup.com