Morocco Offers 90% Car Import Discount for Long-Term Expat Retirees Returning Home

In the case of Moroccan retirees who wish to benefit from this discount, they must first have resided abroad for at least 10 years. This residence must be effective and proof will therefore be required when filing the application. If you have resided less than 10 years, do not try your luck, the Moroccan customs will not give you a 90% reduction.

Furthermore, a definitive return of the MRE is required. Saying definitive return to Morocco also means paying taxes in Morocco.

As specified by customs on their website, here are the conditions:

• The beneficiary Moroccan Resident Abroad (MRE) must be 60 years of age or older
• The 90% discount cannot be granted to persons permanently settled in Morocco
• The beneficiary MRE must have actually resided abroad for at least 10 years
• Benefit reserved only for passenger cars falling under the HS position (EX. 87.03):
Equipped with a gasoline, diesel or hybrid engine,
Designed for the transport of nine persons or less, including the driver (the number of seats is that indicated on the registration certificate); and
Authorized for circulation on public roads.
Other vehicles such as motorcycles, quads, kart-cross and similar vehicles as well as utility vehicles, mixed-use vehicles, motorhomes, vans, pickups, double-cab vehicles are excluded.
• Benefit limited to one vehicle in the beneficiary’s lifetime
• The taxation is calculated on the basis of an estimated value, in new condition, according to the make, model and specifications of the vehicle considered and this, up to a maximum of 300,000 DH. The portion above this value will be subject to the payment of the duties and taxes payable under common law.
• Non-cumulation of the benefit of the 90% discount with the benefit of "aging" provided for in cases of customs clearance as part of a definitive return
• Non-cumulation of the benefit of the 90% discount with the benefits provided for by the tariff or free trade agreements concluded by Morocco;
• Non-cumulation of the benefit of the 90% discount with the benefits granted to Moroccan diplomats and assimilated recalled to the Central Administration.
• The vehicle cleared under the benefit of the advantage cannot be sold or transferred for 5 years. This condition is lifted in the event of the beneficiary’s death.

Faced with the ambiguity, the customs administration had published a circular last year to clarify certain provisions, particularly on non-transferability.

By circular no. 5352/210 of 31/12/2012, the service was informed of the provisions of the Finance Act no. 1-12-57 for the 2013 fiscal year, which instituted an 85% discount on the value in new condition of passenger cars registered abroad, put into consumption by Moroccan Residents Abroad, aged 60 and over and justifying a stay abroad of at least 10 years.
The threshold of this discount was raised to 90%, in application of the provisions of the Finance Act no. 70-15 for the 2016 fiscal year, taken up by circular no. 5558/210 of 29/12/2015.
Similarly, the service was instructed, by circular no. 5357/314 of 31/12/2012, on the conditions attached to the benefit of this tax advantage, in particular, the inalienability of the vehicle presented for customs clearance for a period of five (05) years.
Now, insofar as the benefit of this advantage is granted only once in a lifetime, it has been decided, as a relaxation, to lift the condition of inalienability.
The other terms for granting this advantage remain unchanged.
The provisions of circular no. 5357/314 of 31/12/2012 are consequently modified.