Morocco: New Fiscal paradise for retirees




Increasingly, retirees European and French in particular, discover and choose Morocco as a destination for their retirement. If the climate and quality of life in head to the reasons for this choice, better purchasing power is also a major reason. But today it seems that the number of pensioners who wish to retire in this country is steadily increasing. To highlight a Franco-Moroccan agreement, which is still for 42 years, it seems to go back through the calls of the tax Moroccan to French.

A very attractive tax treaty with Morocco

E 'in 1971 that the Franco-Moroccan provides that "pensions and annuities shall be taxable only in the only state in which the taxpayer is resident for tax purposes". This means that even if you hit a pension from the French government, it is enough that you have your house set in Morocco and you will be taxed only on the income level of the Kingdom. So no taxes in France and very little in Morocco. Especially since the IRS considers to anyone resident Moroccan who remains at least 183 days a year in the United. Thus, only about 6 months of life in Morocco is sufficient to be considered as a resident. The only restrictions imposed by Morocco are not abusing round trips to France.

A tax calculations very interesting

Since they are reported as French residents of Morocco, who will receive great benefits in terms of taxes. First, with regard to income tax. For French resident in Morocco the right not only to a 80% reduction in their tax liability, but in addition, they have the opportunity, if their pension is paid directly into a bank account in Morocco, in dirham and non-convertible , to apply a reduction of the amount of pensions received by 40%.

In particular, a retiree who receives € 2,000 per month pension declare only (€ 2000 * 12 * 60%) € 14,400 for tax Moroccan. He then suffer the Moroccan tax rate on that amount and will be entitled to a discount of 80% of what they should pay. In conclusion, the tax rate for residents of Moroccan origin French is of the order of 1 to 2% on average and not exceed 4% in general. Enough to attract a lot of envy.

But the income tax is not the only advantage to the level of taxes because Morocco does not know either of taxes on capital or inheritance. And finally, all pensioners are exempt from tax on the rental income for three years and are then entitled to a 40% reduction.

A booklet recently presented the benefits of retired expatriates in Morocco. Taxation, easy life, the climate. Everything has been proposed to attract them. And given the property prices, which, despite the recent rise is still very affordable, you understand why Morocco can quickly become an Eldorado for French retirees.