An Introduction To Morocco’s Second Home Tax Incentives

Morocco has long been a gateway between Europe, Africa, and the Middle East, making it a strategic location for international trade and investment.

With an ever-growing economy and a focus on infrastructure and development, the country is attracting real estate investors from around the globe, with recent government legislation changes making it even more attractive; among them, the exemption of rental income from IGR for the 3 years following the end of construction, with, thereafter, a reduction of 40%.

There is also exemption from urban tax for 5 years on new constructions, total exemption from tax on capital gains generated in the event of transfer of real estate used as a main residence for at least 8 years, as well as the absence of inheritance tax.

Whether they are residents or not, foreigners also benefit from full convertibility on the amounts in foreign currencies entered for the purpose of financing real estate investments, the proceeds from the resale of property as well as the rent received for rental purposes of a property financed by sums from abroad. All that is needed is to transfer the amounts from abroad to an account in convertible dirhams and notify the Foreign Exchange Office of the acquisition of the property through the notary.

Also, non-resident foreign investors in Morocco benefit from the guarantee of transfer, outside Morocco, of the proceeds from the sale of real estate without limit of time and amount and also that of the net capital gain of the transfer of real estate.