The concept of foreign assets is key in Morocco’s foreign exchange regulations.
Indeed, these assets expose their resident holders to obligations in accordance with current legislative provisions. These obligations notably include declaration requirements and document retention.
Since the IGOC 2026 came into force on January 1, 2026, managing foreign assets has been a central topic for investors and businesses in Morocco. Understanding the rules of the IGOC (General Instruction for Foreign Exchange Operations) and best practices for managing foreign assets is essential to ensure compliance and optimize investments.
In this article, we will explore the concept of foreign assets in Morocco. We will base our analysis on articles 1, 2, 18, and 20 of the General Instruction for Foreign Exchange Operations (IGOC) 2026.
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General Overview of the General Instruction for Foreign Exchange Operations (IGOC 2026)
Understanding the IGOC 2026 in Morocco
The IGOC 2026 is the Exchange Office instruction that defines the foreign exchange operations that residents and non-residents may carry out freely, together with their terms and conditions; any other operation remains subject to the Exchange Office’s authorization. It aims to strengthen transparency, prevent financial risks, and ensure better management of foreign assets.
Businesses and investors must familiarize themselves with these regulations to avoid sanctions and maximize their benefits.
This instruction was developed as part of an ongoing process aimed at simplifying and easing foreign exchange regulations. Indeed, the objective is to better support economic operators in their international operations.
This instruction does not date from 2024. However, the IGOC 2026 corresponds to an update that was carried out following broad consultation with various professional associations and groups, as well as with the relevant public authorities.
This instruction was developed following a broad consultation conducted by the Exchange Office with professional associations and groups as well as with institutional stakeholders.
Managing Foreign Assets
Effective management of foreign assets requires a well-defined strategy.
This includes understanding tax laws, knowing investment opportunities, and implementing robust compliance mechanisms. A proactive approach can help maximize investment returns while remaining compliant with current regulations.
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Foreign Assets: Definition and Implications
According to Article 2 of the IGOC 2026, foreign assets are “financial instruments, real estate, foreign currency cash, gold holdings and, generally, any property, right and interest, whether or not represented by securities, held outside the regulated territory.” This may include:
- Bank accounts held in foreign institutions,
- Financial or real estate investments outside Morocco,
- Movable or immovable property located abroad.
Article 1 of the IGOC 2026 specifies that the constitution of assets abroad and the opening of accounts abroad by Moroccan resident persons remain subject to authorization from the Exchange Office, unless the operation is expressly provided for by the Instruction.
Furthermore, Article 18 of the IGOC specifies that:
- Moroccan resident natural persons (individuals only)
- who come into possession of assets or cash abroad
- have a reporting obligation to the Exchange Office.
This declaration must be made within three months from the date these assets and cash enter their estates.
In practice: voluntarily constituting assets abroad without a basis in the IGOC requires prior authorization from the Exchange Office; by contrast, assets received (for example through inheritance or gift) must be declared to the Exchange Office within three months of entering the holder’s estate.
Reporting and Document Retention Obligations
As we saw previously, Moroccan resident individuals who come into possession of assets or cash abroad have a reporting obligation.
This involves making a declaration within three months from the date these assets and cash enter their estates.
This declaration must be prepared using the template attached in Annex 3 of the IGOC 2026, together with the corresponding supporting documents.
In addition, Article 20 of the IGOC 2026 requires resident natural and legal persons who have carried out operations provided for by the Instruction to retain the related documents, in accordance with the Commercial Code provisions on document retention (ten-year retention).
It is important to note that failure to comply with these obligations constitutes a breach of foreign exchange regulations, penalized under foreign exchange legislation (Dahir of August 30, 1949 and subsequent texts), not by the IGOC itself. It is therefore advisable to comply with the rules of the IGOC to avoid any risk of violation.
If you are a natural or legal person resident in Morocco, you must:
- Verify regulations before holding assets or cash abroad,
- Understand obligations and rules that apply to your situation.
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Voluntary Regularization of Foreign Assets 2024
The 2024 Voluntary Regularization Operation (VRO 2024) in Morocco represents a crucial initiative for natural and legal persons holding foreign assets. This guide aims to provide a clear understanding of the regularization process and the steps necessary to ensure compliance with the Exchange Office.
Understanding the VRO 2024
Launched under Article 8 of Finance Law No. 55-23 for the 2024 fiscal year, the VRO 2024 ran from January 1 to December 31, 2024. It concerned Moroccan residents who accumulated assets and cash abroad before January 1, 2023, in violation of foreign exchange regulations. Its implementing circulars (No. 1/2024 and No. 2/2024 of 12/29/2023) remain in force under the IGOC 2026 (Art. 253), notably for the management of regularized accounts and assets.
Regularization Process
Holders of assets abroad can make their declaration anonymously through the bank of their choice. A template pre-established by the Exchange Office must be used, including the list and nature of assets to be declared. The rate of the liberating contribution is set by the provisions of the Finance Law.
Strategies to Ensure Compliance
To successfully navigate this process, it is recommended to consult experts in foreign exchange regulations and international taxation. These professionals can help understand the nuances of the VRO 2024 and prepare the documents needed for a complete and compliant declaration.
Benefits of Regularization
Regularization under the VRO 2024 offers several benefits, including compliance with Moroccan tax laws, prevention of sanctions for non-reporting, and peace of mind for holders of foreign assets.
The 2024 Voluntary Regularization Operation is therefore an important opportunity for Moroccan residents to regularize their foreign assets. By following the Exchange Office’s guidelines and relying on professional expertise, asset holders can ensure their compliance and secure their tax situation.
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Frequently Asked Questions
What is the IGOC 2026 and why is it important for businesses in Morocco?
The IGOC 2026 is the Exchange Office instruction, in force since January 1, 2026 (it repeals the IGOC of January 2, 2024), that defines the foreign exchange operations that may be carried out freely and their conditions; any other operation remains subject to the Exchange Office’s authorization.
How can businesses effectively manage their foreign assets?
Businesses must adopt a strategy that includes understanding tax laws, making sound investments, and implementing compliance mechanisms.
What strategies are recommended to comply with the IGOC 2026?
Businesses should consult tax and foreign exchange experts, use financial management software, and implement internal policies for tracking foreign currency transactions.
Are there success stories in managing foreign assets in Morocco?
Yes, several case studies show how businesses have optimized their foreign assets while complying with IGOC guidelines.
