Semi-retirement in Morocco: Cross Border Tax Planning

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whereskyle
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Joined: Wed Jan 29, 2020 9:29 am

Semi-retirement in Morocco: Cross Border Tax Planning

Post by whereskyle »

Hello Bogleheads,

The family and I (including the Mother-in-Law) are considering a move to Morocco from the US. All of us own and operate fully remote service businesses (various LLCs and S-Corps) for US clientele and we plan to continue operating them from abroad. Once we establish residency, we'll have to deal with Morocco's personal income tax rates, which escalate very quickly (38% on income over ≈$18,000 USD). We therefore need to pin down whether Morocco treats US LLCs as pass-through entities, because if not we will probably need to consider some corporate restructuring.

Are there any Bogleheads here who have familiarity with how Morocco taxes U.S. LLCs/S-Corps? Your familiarity with other issues specific to Morocco will surely be helpful to us!

Thanks as always, Bogleheads.
"I am better off than he is – for he knows nothing and thinks that he knows. I neither know nor think that I know." - Socrates. "Nobody knows nothing." - Jack Bogle
123
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Re: Semi-retirement in Morocco: Cross Border Tax Planning

Post by 123 »

Some of the worldwide accounting firms may have helpful information https://www2.deloitte.com/content/dam/D ... s-2023.pdf
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LadyGeek
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Re: Semi-retirement in Morocco: Cross Border Tax Planning

Post by LadyGeek »

This thread is now in the Non-US Investing forum (cross-border tax planning), which attracts members with non-US tax experience.

(Thanks to the member who reported the post and explained what's wrong.)
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Topic Author
whereskyle
Posts: 1917
Joined: Wed Jan 29, 2020 9:29 am

Re: Semi-retirement in Morocco: Cross Border Tax Planning

Post by whereskyle »

123 wrote: Mon Feb 03, 2025 12:37 pm Some of the worldwide accounting firms may have helpful information https://www2.deloitte.com/content/dam/D ... s-2023.pdf
Thanks and you're right. Lots of great info from these sources. But I haven't found an answer to this pesky question of tax treatment of income derived from a U.S. LLC. I know countries such as Portugal do not require all income to pass through. A firm in Morocco wants to charge me $3,000 to answer the question. It's a huge upsell because we're American. I am accustomed to being able to find answers to questions like this through simple research. The trick might be simply to wait until we're in Morocco to find someone who can tell us where to look for the right answer.

But pinging again if any other Bogleheads can help.

Thanks again!
"I am better off than he is – for he knows nothing and thinks that he knows. I neither know nor think that I know." - Socrates. "Nobody knows nothing." - Jack Bogle
assyadh
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Re: Semi-retirement in Morocco: Cross Border Tax Planning

Post by assyadh »

Wait until you're in morocco. you'll see how things can be fluid there. you'll find good notaires/tax lawyers there. don't do it before.
Where are you going? as in which city?
Regarding taxes, things are really different than the US.
Topic Author
whereskyle
Posts: 1917
Joined: Wed Jan 29, 2020 9:29 am

Re: Semi-retirement in Morocco: Cross Border Tax Planning

Post by whereskyle »

assyadh wrote: Tue Feb 04, 2025 11:41 am Wait until you're in morocco. you'll see how things can be fluid there. you'll find good notaires/tax lawyers there. don't do it before.
Where are you going? as in which city?
Regarding taxes, things are really different than the US.
Thanks very much for weighing in here, and I agree that this is what we should do. We are heading to Tangier in a few months, but we will take our time and do some scouting outside the major cities to find the best place to "settle" for us. Just like our friends in Casa and Marrakech have told us regarding real estate, we should just wait until we're there before making any major decisions.
"I am better off than he is – for he knows nothing and thinks that he knows. I neither know nor think that I know." - Socrates. "Nobody knows nothing." - Jack Bogle
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