According to official sources there are thousands settling every year, amongst other places, in Marrakech. However, for many candidates, this infatuation is also explained by the financial prospect, principally concerned with the buying power and the taxation system. You can buy a newly built 100 m2 flat for 50,000 € in Kenitra, or a small villa in Agadir for 100,000 €. Add to that a cost of living 3 to 4 times lower than in France, providing the option to afford the services of a fulltime maid or gardener for 150 € per month, and everything seems in place to buy yourself a dream life with a retirement pension of just 1,500 € a month. For their part, the Moroccan authorities, aware of the interest shown in the country by these new residents, have increased initiatives for welcoming them, not only in terms of infrastructure but also from a taxation point of view. On this latter point, we asked Maître Reda Boulmane, a notary in Marrakech, to provide us with some clarifications and details.

Sun Résidences : How do you become a Moroccan resident?

Reda Boulmane : The Franco-Moroccan tax agreement defines the tax residence as being the place where a physical person has permanent residence. When a person has their permanent residence in both countries, the tax residence is formed by the centre of professional activity and, by default, the main place of stay. The criteria for the main place of stay enables the definition, in general, of the residence of the tax payer in the country where s/he stays for more than 183 days during one year or for a consecutive period of 365 days.

SR : How is income tax dealt with for these residents?

RB : Normally, an individual with their tax residence in Morocco is taxed on the income applying to their total income, whether Moroccan or foreign. The French pensioner residing for tax purposes in Morocco and receiving a pension from a foreign source benefits from an 80% tax reduction. It is compulsory that the pension be transferred into a Moroccan bank account and converted into dirham

SR : And for any other income?

RB : This depends on the bilateral agreements between the two states. For instance, the Franco-Moroccan agreement does not plan for double taxation. If the income is taxed in France, it will not be taxed in Morocco. Income generated in Morocco would be taxed on a progressive scale (from 0 to 42%) after eventual remissions.

SR : What are the other tax advantages?

RB : In Morocco, there is no tax on capital and inheritance duties.

Simple and efficient, Morocco allows thousands of people to better enjoy their retirement. It is hoped that these extremely advantageous conditions will remain in place for a long time so that others can also live their Moroccan dream.

For further information
on the Moroccan tax system,
concerning rental income, selling
real estate, shares...
visit our website’s Moroccan section,
www.sunresidences.com