\u00abShould I buy my riad in my own name or through a company?\u00bb 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.<\/p>\n
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.<\/p>\n
In short<\/strong> : 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<\/a> of 5 % since the 2026 Finance Act. Setting up a company is particularly advisable for accommodation businesses or joint ventures.<\/p>\n In one\u2019s own name<\/strong>, 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.<\/p>\n Through a company<\/strong>, 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.<\/p>\n Our guide to the\u2019Property purchase in Morocco by a foreigner<\/a> 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.<\/p>\n 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.<\/p>\n The purchase of a riad by a company is subject to the same registration fees as a purchase in a private individual\u2019s 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.<\/p>\n For an overview of property-related taxes, please see our Guide to property taxation in Morocco<\/a>.<\/p>\n 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 \u00abtransparent\u00bb: their shareholders are taxed directly. Such a structure therefore does not provide a tax shield for a second home.<\/p>\n It is sometimes suggested that simply selling the company\u2019s shares rather than the riad would be enough to reduce the tax burden. The General Tax Code has ruled this out:<\/p>\n 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\u2019s specific circumstances: have this analysed before any disposal.<\/p>\n The sale of the riad by the company itself generates a capital gain, which is included in the profit subject to corporation tax.<\/p>\n 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.<\/p>\n 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\u2013Morocco tax treaty and property<\/a> and have your plan certified by a notary in both countries.<\/p>\n 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.<\/p>\n The standard rate is 20 %. The rate of 35 % applies to companies with a net profit of 100 million dirhams or more.<\/p>\n 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.<\/p>\n No, running a guesthouse is a commercial activity. A commercial company, usually a limited liability company (SARL), is more suitable.<\/p>\n Yes, where the investment has been financed in foreign currency, the income it generates is freely transferable, once any tax due has been paid.<\/p>\n Changing the type of ownership after purchase can be costly. Let\u2019s discuss your project at an early stage: we\u2019ll put you in touch with chartered accountants and solicitors who are experienced in dealing with foreign investors. Contact Klair & Arno<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" \u00ab Faut-il acheter mon riad en nom propre ou par une soci\u00e9t\u00e9 ? \u00bb La question revient souvent, surtout lorsque le projet comporte une activit\u00e9 de location ou de maison d’h\u00f4tes, ou lorsque plusieurs associ\u00e9s investissent ensemble. Il n’y a pas de r\u00e9ponse universelle : la soci\u00e9t\u00e9 apporte de vrais avantages, mais aussi des obligations […]<\/p>\n","protected":false},"author":6,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-5884","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/klairarno.com\/en\/wp-json\/wp\/v2\/pages\/5884","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/klairarno.com\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/klairarno.com\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/klairarno.com\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/klairarno.com\/en\/wp-json\/wp\/v2\/comments?post=5884"}],"version-history":[{"count":1,"href":"https:\/\/klairarno.com\/en\/wp-json\/wp\/v2\/pages\/5884\/revisions"}],"predecessor-version":[{"id":5885,"href":"https:\/\/klairarno.com\/en\/wp-json\/wp\/v2\/pages\/5884\/revisions\/5885"}],"wp:attachment":[{"href":"https:\/\/klairarno.com\/en\/wp-json\/wp\/v2\/media?parent=5884"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Proper noun or company name: both approaches<\/h2>\n
Possible forms of society<\/h2>\n
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Taxation of a riad owned by a company<\/h2>\n
On purchase<\/h3>\n
Whilst in custody<\/h3>\n
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The case of transparent property companies<\/h3>\n
When selling: the pitfall of shares<\/h2>\n
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Society and foreign exchange regulations<\/h2>\n
Society and inheritance<\/h2>\n
When does society have meaning?<\/h2>\n
I\u2019d say so<\/h3>\n
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Probably not<\/h3>\n
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Frequently Asked Questions<\/h2>\n
Can a foreigner set up a company in Morocco to buy a riad?<\/h3>\n
What is the rate of corporation tax in Morocco?<\/h3>\n
Does selling the shares rather than the riad result in tax savings?<\/h3>\n
Is a civil partnership suitable for a guest house?<\/h3>\n
Can the company\u2019s dividends be repatriated?<\/h3>\n
Choose the right structure from the outset<\/h2>\n