Real estate in Morocco : Inheritance taxation of MREs and foreigners

- There are certain taxes to pay during the succession or in case of donation in Morocco.

- Rights holders could pay taxes in their country of tax residence, even if the goods are located in Morocco.

First of all, it is necessary to define what succession is. In this case, we speak of succession when the estate of a deceased person is transferred to his successors, that is to say to his heirs, or to his legatees if the deceased had made a valid will in their favour. Recall that in Morocco, the applicable inheritance law is Muslim law for Moroccans and foreigners of Muslim faith, Hebrew law for Moroccans of Jewish faith, and 'its national law' for a foreigner who is not Muslim, in other words who falls under his country of origin. It is therefore necessary to inquire, for the latter, about the applicable law.

Inheritance taxation in Morocco

As a matter of principle, and according to the law, the beneficiaries of an inheritance in Morocco are not subject to taxation under Moroccan taxation, but there are nevertheless certain taxes to be taken into consideration.  As such, according to the law in force, only registration fees of 1.5% are payable in the event of inheritance division between the beneficiaries or 1% in the case of completion of the inventory of the estate (calculation of the deceased's assets). As for the act establishing the rights of the heirs, it is registered at the fixed duty of 200 DH. When the succession relates to immovable property, the registration of the heir gives rise to the payment of a right by ownership of 100 DH for the benefit of land conservation and 500 DH if it is a division of the estate registered within two years of death, under penalty beyond this period of giving right to the payment of a proportional fee of 1.5%.

In the case of a real estate donation in direct line, between spouses, between brothers and sisters, the registration fees are 1.5% and those of land conservation 1.5% of the value of the property donated.

If this donation is not made for the benefit of the persons mentioned above, the registration fees are, if they relate to a built building of 4% and on a bare land of 5%. Land conservation rights remain, according to the law, at 1.5%.

In addition, it is important to note that States tax inheritances relating to property located on their soil, regardless of the nationalities or domiciles of the deceased or heirs. But also when the deceased is a tax resident, in other words he resides in another country where the property concerned by the taxation is located, and in which he could also be taxed.  As such, the case of the France is edifying since the heirs of the Moroccan patrimony of a tax resident in Morocco are subject to inheritance tax, as long as they have resided in France 6 of the last 10 years preceding the death.

We recommend that you take note of the tax obligations in force in your country of residence in the event that you hold dual nationality or are foreigners, as well as the content of the international conventions concluded by Morocco to eliminate double taxation.

 Validated the devolution of the estate

The attribution of the right to the succession is carried out as soon as an act of heredity certifying the death and the rights of those who inherit from it is received and registered. It allows heirs and potential beneficiaries to prove their rights. If the succession relates to a property registered for land conservation, it will be necessary to require the land conservator, on the basis of the act of inheritance, to register the inheritance tax on the land title after having established the death of the former owner and validated the devolution of the estate. A certificate of ownership issued by the land conservation attests to the recognition by this administration of the new situation of the properties and the new owners.