Dubai company investing in morocco

[mintmagic]

This is just an idea, and i may not even implement it. But need some advice.

I was thinking of setting up a dubai based company for my property investments. I am looking at one or two projects in morocco and a another one possibly in egypt, and I thought from a tax perspective, dubai would be a good place to setup base as such.

Anyone had any experience in this area - would it be advisable to setup a dubai company. I mean, does it have any tax advantages in morocco as such? I know I won't be taxed in dubai, but I presume it won't have much effect in morocco, will it?

 

[Lee Filkins]

Mintmagic.
As you are not expected to pay any Tax on rent for five years in Morocco. I dont see the point of it. Although you will pay VAT on the rent and this cannot be claimed by a Dubai company.

To the best of my knowledge, Dubai has no double Taxation treat with any Country. The tax that you pay in Morocco as an income tax or corporate tax could not be claimed back in dubai as a credit.

There is another aspect that is you must note if you raise mortgage in Morocco, you will be asked to service this mortgage with foreign currency. So you will be sitting with the Dirhams that you will earn from your rentals. What are you going to do with them ? perhaps play monoply, as you cannot take them out of Morocco.

If any one has a more concrete & uptodate position to the final paragrapgh. I would like to hear from them.

 

[moroccobound]

Camel

If seeking a mortgage as a non resident, ie. in this case as a Dubai company, with a Moroccan bank, the bank will want it serviced in foreign currency, but if a resident, ie a Moroccan Company seeks financing, the bank will want it serviced in dirhams.

 

[Lee Filkins]

Thank you for info Moroccobond.