Buying Property Through a Company in Morocco: Guide

«Should I buy my riad in my own name or through a company?» This question comes up often, particularly when the project involves a letting business or a guesthouse, or when several partners are investing together. There is no one-size-fits-all answer: setting up a company offers real advantages, but also entails obligations and specific tax implications that are often underestimated.

This guide outlines the possible structures, the tax regime applicable under the 2026 General Tax Code, the implications of a resale, and the situations in which setting up a company actually makes sense.

In short : A Moroccan company (usually a limited liability company) may purchase a riad. Its profits are subject to corporation tax at the standard rate of 20 %. Please note: the sale of shares in a company whose assets consist mainly of property is taxed as a sale of property, with registration duties of 5 % since the 2026 Finance Act. Setting up a company is particularly advisable for accommodation businesses or joint ventures.

Proper noun or company name: both approaches

In one’s own name, you are the direct owner of the riad, as stated on the title deed. This is the simplest option for a second home or an occasional rental property. Any income is subject to income tax, and the sale of the property is subject to capital gains tax.

Through a company, the company is the owner and you hold its shares. The riad becomes an asset of the company, which operates it and generates taxable income at its own level. Your rights are tied to your shares: it is these that you will sell or transfer.

Our guide to the’Property purchase in Morocco by a foreigner points out that a foreign national is free to purchase a property in their own name in an urban area: setting up a company is therefore not a requirement, but a choice.

Possible forms of society

• The SARL, possibly with a sole shareholder: the most common form for a riad in operation. Liability limited to capital contributions; relatively flexible operation.
• The public limited company : more complex, reserved for large-scale projects.
• Civil society : suitable for joint ownership, but not suitable for a commercial activity such as a guest house.

The company is usually set up with the support of the Regional Investment Centre and a professional (an accountant, solicitor or notary), who draws up the articles of association and completes the registration formalities.

Taxation of a riad owned by a company

On purchase

The purchase of a riad by a company is subject to the same registration fees as a purchase in a private individual’s name, namely 4 % for a built property, plus land registry fees and professional fees. The costs of setting up and running the company must also be taken into account.

Whilst in custody

• Corporation tax : profit is taxed at the standard rate of 20 % ; the 35 % rate applies only to companies with a net profit of 100 million dirhams or more. Expenses (maintenance, staff costs, financial charges) and depreciation on buildings and furniture are deductible in accordance with accounting and tax rules.
• Local taxes : The riad is still subject to local taxes, and providing accommodation gives rise to business rates and, where applicable, tourist tax.
• VAT : Accommodation is a taxable transaction; an operating company must apply the VAT rules laid down in the General Tax Code.
• Cast : Dividends paid to shareholders are subject to withholding tax in Morocco. For shareholders resident in France, the Franco-Moroccan tax treaty sets out the taxation rules and the corresponding tax credit.

For an overview of property-related taxes, please see our Guide to property taxation in Morocco.

The case of transparent property companies

The General Tax Code (CGI) excludes from the scope of corporation tax certain property-related companies whose share capital is divided into registered shares, in particular where their assets consist of a dwelling occupied in whole or in large part by their shareholders. These companies are referred to as «transparent»: their shareholders are taxed directly. Such a structure therefore does not provide a tax shield for a second home.

When selling: the pitfall of shares

It is sometimes suggested that simply selling the company’s shares rather than the riad would be enough to reduce the tax burden. The General Tax Code has ruled this out:

• the sale of shares in companies transparent property companies or companies with a focus on property (whose gross assets consist of at least 50 % of property, excluding property used for their own operations) falls within the scope of land gains, such as the sale of a property; ;
• Since the 2026 Finance Act, such disposals of unlisted shares have been subject to registration fees of 5 %, whilst the disposal of shares in other companies is exempt from tax, subject to certain conditions.

If the company actually operates the riad as a guesthouse, the properties used for its own operations are not taken into account when calculating the proportion of property assets. The treatment then depends on the company’s specific circumstances: have this analysed before any disposal.

The sale of the riad by the company itself generates a capital gain, which is included in the profit subject to corporation tax.

Society and foreign exchange regulations

Setting up a company and subscribing to its share capital are among the forms of foreign investment permitted by the Foreign Exchange Office. As these are financed in foreign currency, they benefit from the convertibility regime: you will be able to transfer dividends and the proceeds from the sale of your shares. The same traceability requirements apply as for investments made in your own name: transfers from abroad and the retention of bank statements.

Society and inheritance

Owning the riad through a company converts the property into shares, which can facilitate its transfer or the gradual acquisition of a stake by your children. The Franco-Moroccan agreement stipulates, in particular, that Moroccan securities forming part of the estate of a French national resident in Morocco are exempt in France from inheritance tax. This point applies only to French nationals resident in Morocco: for further details, please see our article on the The France–Morocco tax treaty and property and have your plan certified by a notary in both countries.

When does society have meaning?

I’d say so

• you open a guest house with staff, suppliers and a regular clientele; ;
• you invest in a group and wish to set out governance, contributions and withdrawal in the articles of association; ;
• You are planning to carry out major works and would like to write them off.

Probably not

• this is a holiday home occupied by you and your family; ;
• the letting is occasional and the income is modest; ;
• you’re not ready to take on the responsibility of bookkeeping, annual returns and an accountant.

Frequently Asked Questions

Can a foreigner set up a company in Morocco to buy a riad?

Yes. Setting up a company and purchasing property are forms of foreign investment covered by foreign exchange regulations; they do not require prior authorisation when financed in foreign currency.

What is the rate of corporation tax in Morocco?

The standard rate is 20 %. The rate of 35 % applies to companies with a net profit of 100 million dirhams or more.

Does selling the shares rather than the riad result in tax savings?

Generally speaking, no. The sale of shares in transparent property companies or companies with a predominantly property-based portfolio is taxed as a capital gain on property, and has been subject to a registration duty of 5 % since 2026.

Is a civil partnership suitable for a guest house?

No, running a guesthouse is a commercial activity. A commercial company, usually a limited liability company (SARL), is more suitable.

Can the company’s dividends be repatriated?

Yes, where the investment has been financed in foreign currency, the income it generates is freely transferable, once any tax due has been paid.

Choose the right structure from the outset

Changing the type of ownership after purchase can be costly. Let’s discuss your project at an early stage: we’ll put you in touch with chartered accountants and solicitors who are experienced in dealing with foreign investors. Contact Klair & Arno.