Wednesday, 24 January 2007

Tax Incentives info from Property Borders

• 0% Annual property tax for the first 5 years.

• After this time the tax is based on the properties annual rental value and you will be taxed on 0%-30% of this.

• If the property is your full time residence or holiday home you are entitled to a 75% discount.

• 0% tax on rental income for the first 5 years

• After this period tax is levied at 13.5% of the annual rental income

• 0% capital gains tax if profit is under £40K or after 10 years of ownership.

• Otherwise Capital Gains Tax (TPI) is 20% of the profit, with a minimum of 3% of the sale price. Properties sold after more than 5 years ownership but less than 10 years are subject to TPI of 10% of any capital gain over 1 million Dh (approx £63,000).

• 0% inheritance tax when a property passes to a family member.

• Make things easier for your family in the event of your death by making a Moroccan will.

• 100% repatriation of funds when you sell


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