In brief: Morocco offers foreign investors a liberal framework with 100% foreign ownership allowed, free profit repatriation under the exchange regime, IP protection through OMPIC, and competitive tax incentives including CFC status and free zone exemptions.
With over 15 years of experience advising foreign investors on legal structures and tax optimization, Upsilon Consulting’s chartered accountants provide authoritative guidance on investing in Morocco.
Investing in Morocco: why choose Morocco?
Morocco is an increasingly attractive platform for foreign investments.
For decades, successive governments have placed great importance on foreign investment. In various programs, foreign investments are considered a key factor in supporting the country’s growth.
Various adaptations to the country’s legal and tax framework have been carried out. The stated goal is to guarantee a modern business climate that meets international standards for investors from all backgrounds.
To invest in Morocco, an investor should find familiar benchmarks in terms of laws, regulations, and institutions.
As part of the improvement and modernization of its business system, several laws have been enacted since the late 1990s.
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Freedom of Investment
As part of promoting foreign investment, Morocco has established a system that meets international standards. Thus, any requirement for a local investor has been removed. In Morocco, a company can be 100% owned by foreign investors.
It is possible for a foreigner to freely acquire movable and immovable property without restrictions.
Morocco has also ratified international conventions relating to the guarantee and protection of investment.
Morocco has furthermore adopted an investment charter in order to implement measures to encourage investment. This charter legally enshrines the principle of freedom to invest in Morocco. In addition, this charter promotes investment opportunities in Morocco.
Investing in Morocco: the Exchange Regime
Morocco is committed to liberalizing its economy.
One of the first pillars has been the easing of the exchange system and the progressive liberalization of foreign currency transactions.
Thus, Morocco has established a derogatory regime. Indeed, this regime allows gains (dividends, capital gains, interest, etc.) to be freely transferred abroad.
These measures offer investors a guarantee that ensures the security of their investments.
The dirham is not convertible as a general rule. These measures therefore specifically concern foreign investors who have invested in foreign currency.
An Improvement to the Labor Code
“We urge the government and Parliament to accelerate the process of adopting a modern labor code that promotes investment and employment. We also call on all social partners to establish social peace, which is one of the key confidence factors for encouraging investment.” His Majesty King Mohammed VI.
This code is characterized by its compliance with international standards as set out in the conventions of the United Nations and its specialized organizations related to the field of labor.
The objective of this Code is to guarantee the rights of the working class and investors at the same time.
This code protects trade union rights, prohibits child labor, and ensures the positive inclusion of women.
Furthermore, it sets the limits of the rights of employees and employers by including provisions such as:
- Setting trial and notice periods
- Regulating fixed-term and indefinite-term contracts
- Setting the terms for dismissal and resignation
- Creating entities that monitor and settle disputes, such as labor inspectorates
- Terms for overtime work, weekly rest, and other arrangements
Copyright and Neighboring Rights
The law on copyright aims to modernize the system for protecting the rights of creators and their works. In addition, it allows the harmonization of national legislation with Morocco’s commitments under signed international agreements.
Under this law, an organization responsible for the protection and exploitation of copyright and neighboring rights has been established.
Industrial Property
The law on the protection of industrial property includes provisions relating to the trademark opposition system.
Thus, the established legal framework governs measures for preventing counterfeiting. These measures apply both at the border level and within the territory.
This law also establishes a system for protecting sound signs and olfactory marks.
OMPIC (Moroccan Office of Industrial and Commercial Property) is the organization responsible for the protection of industrial property, as well as electronic trademark filing.
Furthermore, Morocco has joined various international agreements on industrial property. This gives investors the ability to protect their property both nationally and internationally.
In conclusion, Morocco has aligned local standards in this area with the highest international standards in this field.
Freedom of Pricing and Competition
The Law 104-12 on freedom of pricing and competition aims to define the main rules for protecting competition.
It establishes the basic principle of protecting freedom of competition. The law in Morocco prohibits the creation of monopolies. As a result, this law aims to stimulate economic efficiency and improve consumer welfare. It explicitly sets as its objective to ensure transparency and fairness in commercial relations.
In Morocco, the Competition Council is the body responsible for the proper application of this principle. This body ensures the transparency of economic relations. It monitors in particular:
- Free competition in markets,
- Anti-competitive practices,
- Unfair commercial practices,
- Economic concentration and monopoly operations.
Free Trade Agreements - Encouraging Investment in Morocco
Morocco has signed a number of free trade agreements with several countries and economic zones:
- Morocco-EU (1996)
- United States (2004)
- Turkey
- Egypt
Tax System for Investing in Morocco
The Moroccan tax system, with a focus on simplification, rationalization, and modernization, has been codified within the framework of the General Tax Code (CGI).
The main taxes that comprise it are:
- Income Tax (IR)
- Corporate Tax (Corporate Tax)
- Value Added Tax (VAT)
These articles provide information on the tax provisions in force in Morocco in 2026.
Furthermore, the current legislative framework offers certain tax exemptions and reductions to encourage and promote investment in certain sectors in Morocco (Casablanca Finance City, Industrial Acceleration Zone, Offshoring, etc.)
Morocco also has a system of double taxation avoidance avoidance treaties with most countries.
Frequently Asked Questions
What is the legal framework for investing in Morocco?
Morocco’s investment framework is governed by the Investment Charter, the Commercial Code, and various sector-specific regulations. The country guarantees freedom of investment, free transfer of profits, and protection of property rights. Special economic zones such as Casablanca Finance City and Industrial Acceleration Zones offer additional legal protections and incentives.
What are the main taxes applicable to businesses in Morocco?
The three main taxes applicable to businesses in Morocco are Income Tax (IR), Corporate Tax (IS), and Value Added Tax (VAT). The standard Corporate Tax rate converges toward 20% for most companies under recent reforms, while VAT rates range from 7% to 20% depending on the product or service. Double taxation treaties with over 60 countries provide additional relief.
Does Morocco have double taxation treaties?
Yes, Morocco has signed double taxation avoidance treaties with more than 60 countries, including France, Spain, Germany, the United States, and most EU members. These treaties prevent the same income from being taxed in both Morocco and the investor’s home country, and they often provide reduced withholding tax rates on dividends, interest, and royalties.
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