For me, investing in real estate is a project that has been on my mind for some time. But what are the tax incentives I can benefit from as a real estate investor?
The real estate sector plays an important role in the overall investment market of the Moroccan economy. The popularity of this sector is explained firstly by its relative certainty and the importance of the risk/return ratio compared with other markets, and also by the fact that it does not require any particular skills, making it open to all to invest. Real estate in Morocco also enjoys a number of tax exemptions, all of which can be viewed on the Moroccan tax office website.
Since 2009, VAT has been reduced to 7% for the purchase of building land and new residential property. This reduction in VAT is granted under certain conditions, particularly in terms of construction deadlines and property transfer.
Real estate companies benefit from a reduction in corporate income tax of up to 50% for real estate investment projects. This reduction is granted subject to certain conditions, including construction deadlines and property disposal.
Since 2014, Morocco has introduced a tax credit mechanism to encourage investment in real estate. This system allows investors to deduct up to 50% of their real estate investments from their corporation tax. This tax credit is granted subject to certain conditions, notably in terms of construction lead times and property disposal.
people living abroad who buy property in Morocco can qualify for non-resident status, which enables them to benefit from advantageous tax terms on their investment. This status is granted under specific conditions, notably in terms of length of stay in Morocco and the amount of the investment.
It is important to bear in mind that these tax incentives may be subject to certain conditions, and it is advisable to check with the relevant authorities to find out how they apply. However, it is important to remember that investing in real estate also involves risks, particularly in the event of a downturn in property prices or of difficulty in finding tenants. It is therefore recommended that you seek the advice of real estate professionals before making any investment decision.
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