Location: Northern Africa, bordering the North Atlantic Ocean and the Mediterranean Sea, between Algeria and Western Sahara
Area: 446,550 sq km
Population: 33,757,175
Ethnic groups: Arab-Berber 99.1%, other 0.7%, Jewish 0.2%
Languages: Arabic (official), Berber dialects, French often the language of business, government, and diplomacy
Largest cities: Casablanca, Rabat, Fez, Marrakech, Agadir, Tangiers. Morocco's climate is moderate and subtropical, cooled by breezes off the Mediterranean Sea and Atlantic Ocean. In the interior the temperatures are more extreme, winters can be fairly cold and the summers very hot. Marrakech has an average winter temperature of 21ºC (70ºF) and 100°F (38°C) in summer. In the Atlas Mountains temperatures can drop below zero and mountain peaks are snow capped throughout most of the year. The winter in the north of the country is wet and rainy, while in the south, at the edge of the Moroccan Sahara, it is dry and bitterly cold. The first nine years (ages 6-15) of education in Morocco are compulsory and guaranteed as a fundamental right by the Constitution. This is preceded by optional preschool education. Beginning with basic education, all levels of education in Morocco are offered on two parallel tracks: the modern track and the original track. The latter emphasizes Islamic disciplines, national identity and the sciences, and enrolls far fewer students than the former, although at the preschool level two times the numbers of students attend Koranic schools than modern schools. In the modern track, basic education is divided into two cycles of six and three years respectively. Arabic is the language of instruction and French is introduced as a second language in the third grade. The first six-year cycle is taught at primary schools and students attend class for 28 hours a week. The second stage of basic education is generally taught at colleges, and students attend class for 33-35 hours a week Students are assessed on the results of their coursework, and progression between grades is based on these results. Promotion to the second cycle of basic education is based on student coursework in the sixth grade and the results of a standardized examination taken at the end of sixth grade. At the end of the ninth grade, students are assessed on their performance during the school year as well as on their performance on an end-of-year school examination and an end-of-year state examination. Based on the results of grade nine assessments, students are streamed into either the general, technical or professional secondary tracks. Students who successfully complete basic education but do not continue to the secondary level are awarded a Certificat d’Etudes Secondaires.In the original track, studies focus on Islamic disciplines which include Islamic law, Arabic, history, Arab civilization, Islamic thought and philosophy, and sciences. The schema of studies is composed of two basic education stages: a first cycle of four years duration, and a second three-year cycle, which is also open to children who have completed the first cycle of the modern track. The weekly workload is between 27 and 41 hours depending on the discipline. Although only a small percentage of students follow the original track, the government stresses its importance as a means of maintaining a sense of national and regional identity. Duration: Nine years divided into a first cycle of six years and a second cycle of three years.Secondary Education.The secondary cycle of school studies in Morocco is three years in duration and is open to students who have successfully completed nine years of basic education. Students are streamed into one of two tracks: either the general and technical tracks leading to the baccalauréat, or the vocational track leading to the award of professional qualifications. Baccalaureate-track instruction is offered at lycées.The general secondary track is geared toward training students in the humanities and sciences to prepare them for postsecondary studies. Students are streamed into one of three broad fields: language arts, experimental sciences and mathematics. Students receive between 27 and 33 hours of weekly instruction depending on their field of studyThe objective of the technical track is to prepare students for postsecondary studies or for the workplace. Studies are organized into six main concentrations:
- Mechanic engineering (sciences and techniques, mechanical production, casting and smelting)
- Electrical engineering (electrotechnology, electronics)
- Civil engineering (buildings and concepts, plastics, arts and industrial graphics)
- Chemical engineering (chemistry)
- Economics (Economic theory, financial administration, accountancy)
- Agriculture (Agricultural sciences)
Higher EducationAdmissionAdmission to postsecondary institutions is open to baccalauréat holders and many schools and faculties require that students also pass an entrance examination. Most institutions or faculties will also require that students have minimum grades in their proposed majors. Furthermore, some institutions will only accept students who have obtained their baccalauréat in the year of application for registration. These extra requirements have been introduced over the last 10 to 15 years as schools have become unable to meet the burgeoning demand created by the official Moroccan policy of open access for baccalauréat holders.The school year runs from October to June. The language of instruction in the humanities and social sciences is Arabic, while French is the language of instruction in scientific subjects. Curriculums in all fields are for the most part standardized by the Ministry of Higher Education. All Moroccan universities use a 20-point grading scale. Any score over 10 is considered a passing grade; very few students average higher than 14 across all subjects. Students must score above 50 percent on end-of-year written and oral examinations to progress to the next year of studies. The proportion of students required to repeat a year is high, especially in the first year of studies and it is not uncommon for students to take more than six years to complete a four-year degree. According to the Ministry of National Education, higher education in Morocco is offered at institutions that can be classified into three broad categories: universities, grandes écoles and other institutes under the tutelage of the higher education branch of the ministry; grandes écoles and institutes under the direction of other ministries (relevant to the technical or professional orientation of the school); and private higher education. University education is offered at 14 universities encompassing a combined total of 49 faculties and schools. Three main types of university have been established in Morocco: public institutions set up immediately after independence and during the 1970s; newer universities established during the 1980s in response to the burgeoning demand for higher educational opportunities; and the private not-for-profit university of which Al Akhawayn is currently the only one. The Moroccan Tax System is based on the French system and has quite a few complexities. Here is a very basic guide to the Moroccan Tax and legal implications for investors. The Moroccan tax system is based on the French system and has quite a few complexities. The following is a very basic guide to the Morocco tax and legal implications for UK investors: Buy and Sell Strategy Capital Gains Tax (Taxe sur les Profits Immobiliers - TPI)
TPI is based on the sale price less the purchase price. Capital gains tax is 20% of profit with a minimum of 3% of the sale price. Purchase price includes the following:
- Credit expense
- Registration cost
- Notary fees and tax
- Repairs
- Brokerage fees
- Inflation (based on a government table)
Adding 15% to the purchase price is the second option in calculating the purchase price. This option is often used in the case that invoices are not available to justify the expenses. Exoneration from Capital Gains The property is sold after owning it for more than ten years.
The property is owned for more than 5 years but less than 10 years. In this case the TPI tax 10% of any capital gain over 1 million dirhams. Inheritance Tax Family members pay 0% inheritance tax. Expert advice should always be obtained prior to implementing any inheritance tax planning strategies. Nonetheless, it is ideal to make a Moroccan will. UK- Moroccan Treaty There is a double tax treaty between the UK and Morocco that ensures investors do not suffer Capital Gains tax in both countries. Corporate Tax If you intend to purchase a number of Moroccan properties it may well be worth considering establishing a Moroccan Private Limited Company. The private limited company (SARL) (Setup time is about 3 weeks). The SARL is an intermediate type between associations of persons and of capital, bearing resemblance to both partnerships and share companies. It is always a trading company, regardless of its corporate name and its minimum equity capital is 100,000 dh. It may be formed by two or more members who are only liable to the amount of their share of the equity capital in the company. Unlike a general partnership, members of a private limited company do not need to be registered merchants. The private limited company must file a memorandum of association as part of its incorporation process. The capital stock has to be fully described and paid up as the company is formed. Stocks shall have the same face value and are not negotiable; they may be transferred only through contracts. "Parts Sociales" may be transferred to third parties outside the company only with the co-associates' consent.
- Tangier is 50% of the tax rate in the rest of the country.
- 8.75% for the first 5 years
- 17% after 5 years
Buy and Hold/ Let Strategy Personal Income Tax on Rental Income (IGR)
UK investors utilizing a buy let strategy will be responsible to pay tax on this income. In Tangier 60% of this income is taxable at 22% (other parts of Morocco are taxed at 44%). The city of Tangier has a 50% reduction on rental income tax adding yet one more advantage to invest in Tangier. For the first three years the property is owned, there is also a three year tax-free period. Property Tax (Taxe Urbaine) (Personal vacation home option)
Property taxes are paid annually. For the first five years owners have full exoneration (Property agencies are NOT included). After 5 years the tax is based on the property's annual rental value. This is done with a graduated tax table:
- < 3000 dh 0%
- between 3001 and 6000 dh 10%
- between 6001 and 12000 dh 16%
- between 1201 and 24000 dh 20%
- between 2401 and 36000 dh 24%
- between 36001 and 60000 dh 28%
- > 60,000 dh 30%
If the home is your permanent or vacation home residence there is a 75% discount. Property Rental Tax (Taxe Urbaine) (Investor option)
Investors pay 13.50% on the rental value of the property. Garbage Collection Tax (Fiscalite des collectivites locales)
There is a 5 year exoneration from the garbage collection tax. Tax is levied at 10% of the property's annual rental value. Legal The legal system is Latin-based and similar to that in France and Spain. Clients should allow for around 5% of the purchase price. This is made up as follows:-
- Registration fees 2.5%
- Notary's Tax 0.5%
- Notary's fees 1.0% to a max of 2,500Dh
- Land registry 1.0%
- Sundry expenses 2000 Dh
- Dh = Moroccan Dirhams also know as MAD
Buyers will open a Euro account with a bank in Morocco and will transfer Sterling or Euros to this account. The Euros will then be converted into Dirhams when paying the seller. All properties will be freehold but in most cases of old houses, deeds will need to be created. New properties tend to have existing deeds. The system is very similar to Spain except that the papers are created and signed by a Notary. A buyer will generally have to pay a 10% deposit, the normal time to completion is 6/8 weeks and the buyer will need to return to complete the purchase. There is no Vat or taxes on the purchase of houses. Land sales are subject to a charge of 1% to cover the notaries' fees. Mortgages are available on the following terms: -
- The maximum mortgage is 50 percent of the purchase price or valuation.
- The purchase can be paid in Euros, Dollars or Sterling .
- The usual maximum period is 15 years but this is negotiable. The term cannot extend beyond normal retirement age.
- Interest is negotiable at around 7 to 8 percent.
- Proof of income is required.
