In brief: Foreign investors in Morocco benefit from full convertibility of their investments under the Exchange Office’s derogatory regime. This allows free repatriation of profits, dividends, and capital, provided the investment is financed in foreign currency and meets the criteria set by the IGOC.
Updated: March 2026
With over 15 years of experience advising foreign investors on exchange regulations and tax compliance, Upsilon Consulting’s chartered accountants provide authoritative guidance on foreign investment procedures in Morocco.
The foreign exchange regime for foreign investments in Morocco allows foreign investors (and non-residents) full convertibility of their investments. It enables non-residents who have invested money in Morocco to recover their investments as well as the profits generated by them.
Under Article 155 of the General Instruction of the Exchange Office, this refers to operations resulting in the creation of a financial or real asset in Morocco. The special regime is open to:
- First, foreign legal entities,
- Second, foreign nationals, whether resident or non-resident,
- Finally, Moroccan nationals residing abroad.
Foreign currency transfers and exchange in Morocco are regulated by the Exchange Office. Resident natural and legal persons do not have the freedom to transfer their foreign currency funds outside Morocco.
This regime guarantees full convertibility of foreign investments. It is a derogatory regime from the general exchange control regime.
The update of the General Instruction of the Exchange Office (IGOC) since 2022 eliminated the reporting obligation required of economic operators.
Foreign Investment Regime in Morocco - The Possibility of Income Repatriation
General Principle of Exchange Control in Morocco
Morocco has a regulated exchange regime under the control of an Exchange Office which stipulates:
- The obligation for Moroccan citizens residing in Morocco to repatriate all income and assets acquired abroad;
- Prohibition of money transfers abroad except for operations authorized and regulated by the Exchange Office.
For example, a Moroccan citizen is only entitled to the equivalent of 45,000 dirhams per year per household member for leisure travel. We can also note that a real import must be justified, with customs documents or a contract to support payment to a foreign supplier.
This rule does not apply to foreigners and non-residents
However, foreign residents or non-residents and non-resident Moroccans benefit from specific measures allowing them greater flexibility. These flexibilities notably include:
- First, freedom to transfer dividends and income earned in Morocco (subject to specific formalities);
- Second, no obligation to repatriate profits earned abroad to Morocco;
- Finally, the possibility of benefiting from the repatriation of proceeds from the sale of securities.
Residing abroad provides certain advantages that we will detail according to the type of income involved. Indeed, for example, a Moroccan Residing Abroad is among the categories to which the General Instruction for Exchange Operations grants the right to establish foreign investments in Morocco (F.I.M.). The same applies to foreigners, whether resident or non-resident.
Please note, when residing in Morocco, under exchange regulations, a dual national holding Moroccan nationality is treated as a Moroccan. They lose the benefits of derogatory regimes upon settling in Morocco.
The Foreign Investment in Morocco Regime (F.I.M.)
Article 155 of the General Instruction of the Exchange Office (I.G.O.C.) defines the foreign investment in Morocco regime (F.I.M.) and provides for the advantages of this regime compared to the general exchange control regime.
Indeed, to benefit from this regime, three cumulative criteria must be met.
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First, a criterion regarding the status of the beneficiary:
Only the following can benefit from this regime:
- Foreign legal entities,
- Foreign nationals (resident or non-resident),
- And Moroccan nationals residing abroad,
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Second, a criterion regarding the method of asset financing:
Investments under this regime must be financed in foreign currency. Article 156 of the IGOC provides further details on financing methods; in summary, this includes:
- Wire transfers received from abroad;
- Debits from foreign currency or convertible dirham accounts of resident or non-resident foreigners and Moroccans residing abroad, held in a bank’s books;
- The consolidation of a shareholder current account into capital (when the latter was financed by foreign currency transfer and/or debit from a foreign currency or convertible dirham account).
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Finally, a criterion regarding the form of the investment:
The IGOC provides for the following possible forms of investment:
- Company creation;
- Equity participation and subscription to a company’s capital increase;
- Acquisition of financial instruments;
- Shareholder current account contributions in cash or trade receivables;
- Granting of related-party loans;
Failure to justify even one of the three criteria is sufficient to lose the advantages provided by the regime.
As a result, this regime constitutes a major advantage because it allows, according to the provisions of the same article, the benefit of a free and total convertibility regime. This means it guarantees the investors concerned complete freedom for:
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The transfer of income produced by these investments, namely (among others):
Dividends or profit shares distributed by Moroccan-law companies;
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Interest produced by related-party loans and shareholder current account advances;
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Interest generated by debt securities;
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Directors’ fees.
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The transfer of proceeds from the liquidation or sale of their investments;
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The repayment of principal on shareholder current account advances and related-party loans contracted in foreign currency; It should be noted that the advantages provided by this regime are transferable in favor of non-resident beneficiaries under the estate succession of a foreigner or a Moroccan residing abroad.
Formalities and Retention of Supporting Documents** **
Under the provisions of Article 13 of the I.G.O.C., banks must provide their clients with all supporting documents proving foreign currency movements.
One of the key documents in a foreign currency investment operation is Form 2.
Banks must provide clients with a Form 2. This document proves the receipt of a foreign currency transfer (F2: Purchase of foreign currency from clients).
In addition, the bank must provide all necessary documents to prove the investment (debit notices, credit notices, etc.).
To properly protect the convertibility regime, it is practical to send the Exchange Office a foreign investment establishment file (F.I.M.) that includes, in addition to supporting documents, the required statistical reports and a file validation request. Following the submission of this file, the Exchange Office confirms the benefit of free convertibility through a written letter.** **
What About Foreign Investments That Do Not Meet These Criteria?
If the investment sold or liquidated does not benefit from the convertibility regime, and after justification of payment of taxes and any other fees due, banks may treat the proceeds from sale and liquidation in one of the following ways:
- Either make them available to the seller in dirhams if they reside in Morocco;
- Credit them to a convertible term account (with deferred payment).
Furthermore, non-resident foreign persons may open “convertible term accounts.” These accounts receive dirham funds held in Morocco by them.
What Does This Involve?
- Funds from the sale or liquidation of a foreign investment made in Morocco that does not benefit from the convertibility regime;
- Assets that banks cannot transfer as part of permanent departures or estate successions.
The balances in “convertible term accounts” give rise to a deferred transfer right. This means the transfer takes place over a period of four years. Moreover, it is done in four equal annual installments of 25% each.
The transfer of the first installment occurs within one year. This period runs from the date the funds are credited to said accounts. Payment of the remaining three installments can only occur on the anniversary date of the funds being credited to the account.
Once the retention period has expired, the beneficiary can freely transfer the matured installments.
In conclusion, it is necessary to be careful to follow the exchange procedure when making an investment. Always seek advice from your chartered accountant, bank, or notary.
A specific issue? Contact Upsilon Consulting for expert guidance on foreign investment procedures.
Frequently Asked Questions
Can foreigners freely invest in Morocco?
Yes, Morocco has a liberal framework for foreign investment. Most sectors are open to foreign investors without restrictions, and investments can be made in foreign currency through authorized banks. The Investment Charter provides guarantees including free transfer of profits and repatriation of invested capital under exchange regulations.
How can foreign investors repatriate profits from Morocco?
Foreign investors can repatriate profits, dividends, and capital through authorized intermediary banks. The Exchange Office guarantees the right to transfer income from investments made in convertible currency. Dividends are subject to withholding tax, which is being progressively reduced to 10% by 2026 under recent finance law reforms.
What tax incentives exist for foreign investors in Morocco?
Morocco offers various tax incentives including Corporate Tax exemptions in free zones, reduced rates for export activities, CFC status benefits, and sector-specific advantages. The country also maintains double taxation treaties with over 60 countries, which help reduce the overall tax burden on cross-border investments.
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