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Moroccan's Sahara : 0% CIT 0% Income Tax 0% VAT

S

SasuT

Member Plus
Jun 5, 2023
89
47
18
France
#1
Hi, I never heard about it on this forum.. so what's the catch ? Or it's just that nobody knows it existed?
It's a program that is here since a long time (at least 40 years now), launched by Hassan II to encourage the activity in the Moroccan's Sahara.
You have cities like Laayoune, Dakhla for example.

Companies here have 0% CIT 0% Income tax and 0% VAT. Asked to someone of my family who had a company in Laayoune and he confirmed me that all companies here are tax exempted.
Program was launched during the 70's and is still going.

The only thing is.. Is it appliable to offshore revenues aswell or only local transactions.. There is no much information on the internet about it, might be worth to ask an accountant or tax advisor.

https://telquel.ma/2017/08/02/fisca...s des provinces du,d'autres régions du Maroc.
https://fnh.ma/article/actualite-fi...ticulierement-avantageux-pour-les-entreprises

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The only "catch" I found is this news : Maroc : des sociétés écrans créées pour échapper au fisc

Some Morrocans companies use those tax free ideas just to transfer funds and exit tax free. But I guess for someone who has a real substance in those areas and can prove it, there will be no problem

By the way, cities like Dakhla for example are really developing fast. Big international projects on the go

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#2
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#3
Martin Everson said:
You want to setup a company in the disputed territory of Western Sahara....lol? You need to be mad to consider doing so.

P.S Better of setting up an Israel company in occupied northern Gaza :confused:.

https://en.wikipedia.org/wiki/Western_Sahara
Click to expand...

There is a difference between what media says and the reality. A big part of "Westen Sahara" is Morrocan, since decades. No problem setting up a company here, specially in big cities like Laayoune and Dakhla. it's not like your example at all lol. I know plenty French/spanish peope who open even local businesses (restaurants/cafe) in those territories. No problem at all. Different than Gaza and Isreal who are in war since decades.

Inform yourself on all the international projects going on on Dakhla.
 
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#4
@Martin Everson is right that SADR is disputed territory. It might be a functional territory, but still disputed. Disputed territories don't attract businesses that seek stability.

It's the same reason free zone companies in TRNC (occupied/breakaway Northern Cyprus) are so rare, despite offering similar benefits. Not long ago, there was a relatively large payment processor that tried to set up shop there but they had to abandon because people refused to sign agreements with their entity there.

SADR currently has a problem with a couple of people operating fake banks "licensed" there. Not exactly helping with the image.
 
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#5
The idea is not to form a Morrocan company only, because of course you'll not even get a payment processor.
Classic US LLC or UK LLP + Morrocan company.

Client will only see your LLC
And then your only worry is if you'll get bombed someday, I'd say it's very unfortunate !

Can suit for digital nomads or people who seek 0% tax for a few years. No problem with that.

In one hand it’s good that nobody is attracted, the 0% tax will remain for another 50 years i guess
 
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#6
And btw.. you're not required to live in the Sahara. You can stay wherever you want in the whole Morrocan territory. Marrakech seems not bad to live.
As long as you have a substance in Southern territories (offices etc)
 
#7
Again I repeat you would be mad to setup a company in disputed territory. Western Sahara is not a place to do business as a foreigner if you have any sort of functioning cognitive ability.
 
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#11
JohnnyDoe said:
I would personally trust more Western Sahara than the EU.
Click to expand...

Konstanz said:
What advantage of Western Sahara comparison with BVI?
Click to expand...
"Western Sahara" is Morocco.
In fact, you can open a company in the Morrocan's Sahara and just live your life in Northen territories (Casablanca, Marrakech, Rabat).. if anybody is afraid about a potential war =D

And sorry I don't know much about BVI. But Morroco is not on anybody grey or red list. If you open a company in Moroccan's Sahara, it's a Moroccan company. Not a "Westen Sahara" company. So no problem with banking etc
 
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#12
SasuT said:
"Western Sahara" is Morocco.
Click to expand...
This depends on what side you take.
Anyway, that region is safer than many European cities (e.g. Marseille).
SasuT said:
In fact, you can open a company in the Morrocan's Sahara and just live your life in Northen territories (Casablanca, Marrakech, Rabat).. if anybody is afraid about a potential war =D
Click to expand...
Dakhla seems a nice place, with perfect weather, long deserted beaches and constant wind for great windsurf.
Marrakech is a beautiful city with lavish mansions available at reasonable prices.
It seems to make sense to setup a business in Dakhla and manage it from Marrakech. What about dividends though?
SasuT said:
And sorry I don't know much about BVI. But Morroco is not on anybody grey or red list. If you open a company in Moroccan's Sahara, it's a Moroccan company. Not a "Westen Sahara" company. So no problem with banking etc
Click to expand...
You cannot even compare Morocco, which is a real country, with the BVI.
 
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#13
SasuT said:
"Western Sahara" is Morocco.
In fact, you can open a company in the Morrocan's Sahara and just live your life in Northen territories (Casablanca, Marrakech, Rabat).. if anybody is afraid about a potential war =D

And sorry I don't know much about BVI. But Morroco is not on anybody grey or red list. If you open a company in Moroccan's Sahara, it's a Moroccan company. Not a "Westen Sahara" company. So no problem with banking etc
Click to expand...
Not sure if better. Have you tried this in reality?
BVI is known good by many banks and EMI, Marocco/Sahara seems even more sketchy
Not sure about Morocco banks, but I don't think they would be convenient for international business use
 
#14
Konstanz said:
Not sure if better. Have you tried this in reality?
BVI is known good by many banks and EMI, Maracco/Sahara seems even more sketchy
Click to expand...
Almost any bank will accept your business in Morocco. The main problem is the currency. It's very easy to bring money in Morocco, but hard to exit with it. (Hard to convert the MAD currency to EUR, USD..)
So need to be considered on the setup you make here. I don't plan to do it for now so I'm just bringing the idea on the table, might be something to dig here.
 
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#16
JohnnyDoe said:
This depends on what side you take.
Anyway, that region is safer than many European cities (e.g. Marseille).

Dakhla seems a nice place, with perfect weather, long deserted beaches and constant wind for great windsurf.
Marrakech is a beautiful city with lavish mansions available at reasonable prices.
It seems to make sense to setup a business in Dakhla and manage it from Marrakech. What about dividends though?

You cannot even compare Morocco, which is a real country, with the BVI.
Click to expand...
I don't know about dividends tbh, but I don't know why it would be taxed if there is no CIT and income tax ? I don't want to give you a bas answer though

JohnnyDoe said:
Is crypto still illegal in Morocco?
Click to expand...
Yes
 
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