Guest houses: classification, permits and operation
What running a riad as tourist accommodation in Morocco involves: classification, day-to-day obligations, and the questions to put to your accountant.
Turning a riad into a guest house is not only a matter of decoration: it means opening a tourist accommodation establishment, with a regulatory framework of its own.
Classification
Tourist accommodation establishments in Morocco are classified by the tourism administration, under categories set by regulation. Classification governs the lawful operation of the business and how it may be marketed. The file covers the building's compliance, safety, hygiene and the services offered.
Day-to-day obligations
- Declaring travellers to the local authorities
- Collecting and remitting the municipal tourist tax
- Invoicing and keeping accounts for the establishment
- Meeting fire safety and accessibility rules
- Declaring the staff employed
Running it yourself, or delegating
A well-filled six-bedroom riad needs a daily presence: welcome, housekeeping, breakfasts, maintenance, answering enquiries. Most non-resident owners hand operation to a local manager paid a percentage of revenue. It is a real cost, and one reason our scenarios apply a high running-cost ratio.
Tax, in one sentence and one warning
Income from operation is taxable in Morocco, and the applicable regime depends on the form chosen — operating in your own name or through a company — as well as on your tax residence. The double taxation treaties Morocco has signed with many countries determine where the tax is due.
This guide gives general bearings. Tourism and tax rules change: have your structure validated by a Moroccan tax adviser before signing.