Land of contrasts and cultural diversity, with modern infrastructures but still preserving authenticity and traditions.
Morocco’s geographical location, economic growth and incentive fiscal system attract professionals, foreign investors and retirees, settling here to live in a mild climate and enjoy the Moroccan charms.
- Categories : Recommended destinations
The Government of the Kingdom of Morocco has committed, for a few years, to the liberalization of its economy. Investment procedures in the country have been simplified to encourage more entrepreneurship in the region. New laws have been passed to increase the growth of local and foreign private companies. The Moroccan government has also signed free trade agreements with several partners, including the European Union, the United States of America, Turkey, as well as the Arab and Mediterranean countries.
Moroccan authorities have been successful in attracting a relatively consistent flow of foreign capital, mainly relying on the national privatisation programme, the conversion of foreign debt into investments and the operations of public services concessions. Other sectors have been dominated by foreign investment, including banking, tourism, energy and industry. However, the level of FDI remains modest and could make a stronger contribution to the economic take-off. The country has also been pursuing a policy of foreign investment, which is mainly targeting the countries of sub-Saharan Africa.
Setting up a business
Creating a company in Morocco is not complex, depending on the choice of business entity, the most common company type in Morocco is a LLC (SARL). There are three types of business forms available to foreign companies in Morocco. Each of these business forms has distinct advantages and disadvantages, as well as differing scope of business activities, registration requirements and minimum capital requirements. In most cases it will depend on the degree of commitment a company has to Morocco and the planned business activity.
Morocco taxes corporate income on a territorial basis. it applies a progressive income tax, which ranges from 10% to 31%. The overall complexity of the tax system is low. This is measured by average time to comply with a country’s labor tax requirements is as it is 42hours.
Thin capitalization restrictions are not in effect. This refers to any sort of restrictions on given company with respect todebt-to-asset ratios. Dividends received from resident entities must be included in business profits, but the dividends are 100% deductible in the computation of taxable income. Dividends received from foreign subsidiaries are not subject to taxation. A dividend is a distribution of a portion of an earnings of the business, decided by the board of directors, to a class of its shareholders. Dividends can be issued as shares of stock, cash payments, or other property. Capital Gains are subject to corporate income tax at normal rates. A capital gains tax is levied on the profits that a corporation or natural person realizes when they sell sells a capital asset for a price that is higher than the purchase price.
Living in Morocco
Morocco is rising quickly as a top tourist destination worldwide, and an even better place to live abroad in. Its political stability and safety set it apart from many of its neighbors, and yet it still offers a more-than-reasonable cost of living which is extremely affordable. The food is incredible and cheap.
Every industry has its own challenges and opportunities and it takes expert market knowledge to pinpoint the right entry points for your venture. If you want to set-up a business, buy a company, live, study, get retired, buy a property or invest in Morocco. Please, contact us.