Morocco is an enchanting destination for people who want to enjoy the sun and take advantage of attractive tax breaks.
Morocco is characterized by its scenic beauty, bustling marketplaces, delicious food, and friendly, warm-hearted people. Geographically located at the crossroads of Europe, the Middle East, and Africa, this country has adapted to its diverse population, and is known for its “live and let live” mentality.
The climate of Morocco is described as sub-tropical, but due to a diverse landscape, it can vary greatly depending on where you are. With its varied terrain including the great Atlas mountain range and the sun-drenched Atlantic coastline, you could be biking through the mountain valleys and surfing on a sandy beach all in the same day. And you can also enjoy the quietness and majestic beauty of the Sahara desert.
Though most Moroccans speak little English, there has been a big push by the government to increase English levels in the local population since 2009. However, in the south (Marrakech, Casablanca, Rabat), French is widely spoken, especially amongst professionals, and in the north Spanish is more widely spoken (Tangier).
Average journey times:
- Paris – Marrakech: 2 hours 54 mins
- London – Marrakech: 3 hours 08 mins
- New York – Marrakech: 7 hours 24 mins
- Los Angeles – Marrakech: 11 hours 58 mins
- Sydney – Marrakech: 21 hours 54 mins
Property price per sqm: 950 € to 1 400 €
HDI ranking: 123/196 countries
HDI: 0.647 Medium human development index based on 3 criteria health, education and longevity
Big Mac Index: 2,73 USD
1 Moroccan dirham: 0,093 EUR / 0,10 USD
How can you live in Morocco – residency requirements:
Many foreigners can enter Morocco without a visa and are allowed to stay as a tourist for up to 90 days.
If you wish to apply for permanent residency, you must apply within 15 days of your arrival in Morocco. Your first residence card is valid for 1 year, and it can be renewed three times. After the third renewal, you will be eligible to apply for a 10-year residency card. The process for resident cards can take 2-4 months, so plan accordingly.
Residency cards can be granted for the following categories: Moroccan spouse, Employment contract approved by the Ministry of Labor, Co-operating Military/Civilian, Student, Company Shareholder, Retired, Without Profession, Contractual
If you wish to work in Morocco, you will also need to apply for a work permit.
Housing in Morocco:
It is worth noting that due to the temperate climate, many homes do not have heating or air conditioning. It can be installed, but expect to pay more for your utility bills.
In order to rent or buy a home in Morocco, you will need to work with local real estate agents. Most rental properties will be delivered completely bare, and you will be responsible for any and all repairs before and after moving in.
Foreigners are free to buy property in Morocco. There are many great real estate deals to be had in Morocco. Make sure you work with the local agents and lawyers to search for and finalize your purchase. Note that most transactions will be made in either Arabic or French, so be sure to arrange the proper translations. Always do your homework to make sure you are not victim of a scam.
Taxation:
You would be considered a tax resident of Morocco if you have spent more than 183 days in Morocco in one calendar year. If Morocco is the center of your economic interest, for example, your primary business is located there, you may also be considered a tax resident regardless of your length of stay. If you become a tax resident in Morocco, you will be liable for income tax on worldwide income earned. Your income tax rate is based on a sliding scale depending on annual income.
Non-residents will only be taxed for income that is earned in Morocco.
French nationals who wish to retire in Morocco can take advantage of special tax benefits. You will only be taxed on 60% of your retirement income. On top of that, you receive another discount of 80% on the income tax that you need to pay. You must be a tax resident of Morocco to take advantage of this benefit.
Foreigners who wish to retire in Morocco are exempt from rental income for up to 3 years, and then eligible for a 40% reduction after 3 years.
Note that homeowners are also subject to property taxes.
Safety in Morocco:
Morocco is a relatively safe country. Despite being an Islamic country, it is one of the most liberal in the Middle East and North Africa. One of the biggest annoyances in Morocco are the constant hustlers that target Westerners. Usually they just want to sell you something, so if you politely decline them and show no interest they will eventually leave you alone. And learning a few words of Moroccan Arabic can help you as well.
Armed fighting in the disputed border area of the Western Sahara is rare nowadays, but it’s best to avoid this area.
