“Should I buy in my own name or set up a company?” It is one of the first questions foreign investors, family offices and guest house developers ask me. The answer is not the same for everyone: it depends on how the property will be used, how long you will hold it, your family situation and your nationality.
This article compares the two options on four practical points: income while you own the property, resale, inheritance and running costs. The tax rules quoted are those of Morocco’s General Tax Code (CGI) in its 2026 version, as amended by Finance Law no. 50-25 for 2026.
The two options in brief
- In your own name: you are registered as the owner on the land title. A foreigner can freely buy a property located in an urban area. Agricultural land is subject to specific rules.
- Through a company: a Moroccan company, most often an SARL (limited liability company), owns the property. You hold the company’s shares, alone or with partners.
In the first case, you own real estate. In the second, you own shares, and the company owns the real estate. This difference changes the tax treatment, the resale and the inheritance.
While you own it: income from the property
In your own name
If you let the property unfurnished or on a long lease, the rent is property income subject to income tax. It benefits from a flat 40% allowance, and the rest is taxed on the progressive income tax scale. When the tenant is a company, it withholds 10% (annual rent below 120,000 DH) or 15% (above), which is credited against the final tax. Since 2025, a 20% final flat-rate option is available.
Note: running a guest house or offering hotel-type services is no longer simple letting. It is a commercial activity, with its own obligations (licence, classification, accounts). Many investors therefore hold it through a company.
Through an SARL
The company pays corporate income tax (IS) on its profit: revenue minus expenses, loan interest and depreciation of the building and equipment. For 2026, the Moroccan tax authority confirms a rate of 20% for companies with net profit below 100 million dirhams, and 35% above.
If the company then distributes its profits, dividends are subject to withholding tax: 11.25% for distributions made in 2026, then 10% from 2027.
The takeaway: a company makes sense when there is a real business, with expenses and depreciation to deduct. For a second home with no income, it mostly adds costs (accounting, annual filings) and complications if you personally use a property owned by your company.
On resale
Selling a property held in your own name
The gain is subject to real estate capital gains tax: 20% of the net gain, with a minimum of 3% of the sale price, even if there is no gain. An exemption exists for a main residence occupied for at least five years, but it does not apply to a second home.
Selling a property held by a company
Two possibilities:
- The company sells the property: the gain is added to its taxable profit (20% or 35%). If the money is then distributed to the shareholders, dividend withholding tax is added.
- The shareholders sell their shares: the buyer takes over the company with its property and business. Since 1 January 2026, the transfer of shares in a predominantly real estate company bears 5% registration duty (down from 6%). Share transfers in other companies are exempt, provided a certificate of non-predominance issued by the tax authority is produced. The seller’s gain on the shares remains taxable.
By comparison, buying a built property directly bears 4% registration duty plus land registry fees. Since 1 July 2026, a 2% surcharge applies to sales above 300,000 DH when the price is not paid by a traceable means (bank transfer, cheque…), on the cash portion only.
The takeaway: a share transfer is not primarily a tax advantage. Its real benefit is continuity: a guest house is sold with its licences, team and bookings. In return, the buyer also takes on any company debts, hence the importance of an audit. See how a share transfer works.
For inheritance
In your own name, the property itself is passed on, and the heirs must be registered on the land title. Several heirs then become joint owners of the property, which can block a sale or a decision on works.
Through a company, the shares are passed on. The company continues to exist, the manager can keep managing, and the articles of association can set rules for admitting heirs. This is often simpler for an operating property or a large family.
However, a company does not let you escape the inheritance rules that apply to the owner: they apply to the shares as they do to the property. Read my article on inheritance for foreign property owners in Morocco.
Which option for which project?
- Second home, family use, no income: your own name is usually the simplest and least costly.
- Guest house, hotel, commercial activity: a company is usually the right choice, to separate the business from your personal assets and deduct expenses.
- Several investors or a family office: a company lets you organise governance, contributions and each partner’s exit in the articles of association.
- Planned medium-term sale of an operating business: a company makes a turnkey sale easier.
The mistakes I see most often
- Setting up a company with no real activity, hoping to pay less tax.
- Underestimating the annual cost of a company: accountant, filings, legal obligations.
- Buying shares without auditing the company. See what a due diligence covers.
- Paying part of the price outside the banking system: besides the 2% surcharge, it complicates transferring the funds abroad when you sell.
Conclusion
The right choice is not made on a single tax criterion. It depends on what you plan to do with the property, for how long, with whom and for whom. Before buying, have the structure validated by a notary and an accountant: a few hours of advice cost far less than a poorly chosen structure.
This article is provided for general information, based on the texts in force in 2026. It does not replace personalised legal or tax advice.
For advice tailored to your situation, contact me directly on WhatsApp (+212 6 61 07 49 33), Instagram (@abdel.laaouina) or LinkedIn (Abdelhadi Laaouina), or book a consultation.
Abdelhadi Laaouina, PhD, is a luxury real estate advisor at Morocco Sotheby’s International Realty in Marrakech. He specialises in luxury real estate in Morocco, and in Marrakech specifically, with a focus on riads, heritage properties, villas and hospitality investment, and brings more than 12 years of experience in real estate and hospitality.
Sources: Moroccan tax authority (DGI), circular no. 737 on the tax provisions of the 2026 Finance Law; Finance Law no. 50-25 for 2026 (text published by the Ministry of Justice); Deloitte Société d’Avocats, main measures of the 2026 Finance Law; DGI, summary note on the 2025 Finance Law (CGI article 247-XXXVII-C: 11.25% in 2026, 10% in 2027); Bladi, taxation of rental income in 2025.