The General Instruction on Foreign Exchange Operations (IGOC) 2026 guarantees foreign investors the right to freely transfer dividends, net profits and disposal proceeds related to their investments in Morocco. This guide covers the conditions, required documents and step-by-step procedure.
Transfer guarantee: a cornerstone of Morocco’s investment appeal
Morocco has made the free transfer of investment income a fundamental commitment of its foreign exchange policy. The IGOC 2026 consolidates this principle by guaranteeing foreign investors, whether resident or non-resident, and Moroccans Residing Abroad (MRE) the right to transfer, in particular:
- Dividends and profit shares distributed by Moroccan companies in which the investor holds a stake.
- Profits earned by Moroccan branches of foreign companies.
- Other investment income (Art. 160): rental income, interest on related-party loans and shareholder current account advances, interest on debt securities and on term deposits.
- Disposal or liquidation proceeds resulting from the sale of equity interests or the liquidation of a company.
This guarantee applies without any cap or prior authorisation from the Exchange Office where the investment was financed in foreign currency (Art. 171 and 173). For income, non-resident foreigners may transfer regardless of how the investment was financed; resident foreigners who lack proof of foreign currency financing and have held their investment for at least 10 years may transfer the income of the last closed financial year, up to an annual cap of 2 million dirhams (Art. 161).
Eligibility conditions for transfer
The transfer conditions vary according to the beneficiary’s status and the nature of the transaction:
How the investment was financed
For dividends, a non-resident foreigner may transfer regardless of how the investment was financed (Art. 161). MRE and resident foreigners must prove financing in foreign currency or convertible dirhams under one of the methods listed in Art. 173, a condition that also applies to the transfer of disposal or liquidation proceeds (Art. 171). Traceability of the financing is essential: the investor is required to keep the settlement records provided for in Art. 12 (bank forms, credit advices), which will be requested for any subsequent transfer (Art. 20).
Beneficiary status
The beneficiary’s status determines the transfer conditions. For individuals, residence is assessed within the meaning of tax legislation (Art. 2 of the IGOC). A non-resident foreigner transfers income regardless of how the investment was financed; an MRE or a resident foreigner must prove foreign currency financing, except for the facility available to resident foreigners who have held their investment for at least 10 years (2 million dirhams per year).
Role of the intermediary bank
Transfers are executed by an intermediary bank, which checks the supporting documents required by the IGOC before making any payment.
Required documents for the transfer
The transfer file requires several documents, varying according to the nature of the income being transferred.
For dividend transfers
- Balance sheet and income statement (CPC) for the relevant financial year, stamped by the Tax Administration (including the electronic stamp via the DGI platform).
- Minutes of the Ordinary General Meeting (or decisions of the sole shareholder) bearing a certified date, approving the distribution and stating the amount of dividends distributed.
- List of foreign or MRE shareholders stating each shareholder’s identity, nationality, address and number of shares held.
- Settlement records in foreign currency or convertible dirhams for the investment (Art. 12) — required for MRE and resident foreigners; a resident foreigner who does not have them provides documents proving that the investment has been held for at least 10 years.
The transfer covers the amount net of withholding tax on dividends (statutory or treaty rate), as the bank must pay net of the taxes and duties due in Morocco (Art. 8 and 161). To apply a treaty withholding rate, the distributing company will also ask for the beneficiary’s tax residence certificate (a tax requirement, outside the IGOC).
For repatriation of disposal or liquidation proceeds
For disposal proceeds, the bank requires the settlement records for the investment (Art. 12), the share transfer deeds bearing a certified date and stating the sale price, proof of payment of the taxes and duties due on the disposal and, for an MRE, proof of residence abroad (Art. 177). For a liquidation: minutes of the Extraordinary General Meeting (or decisions of the sole shareholder) recording the closure and the net proceeds, the liquidation balance sheet stamped by the Tax Administration and the liquidator’s report.
Distinction between dividend transfer and capital repatriation
It is crucial not to confuse these two operations:
| Criterion | Dividend transfer | Capital repatriation |
|---|---|---|
| Nature | Current income | Capital transaction |
| Basis | Distributable profit | Initial contribution +/- capital gain |
| Frequency | After each distribution GM | One-off (disposal, liquidation) |
| Taxation | WHT on dividends (11.25% for dividends paid out of 2025 profits, 10% for those paid out of profits of 2026 and later years, unless a treaty is more favourable) | Capital gains tax (20% or treaty exemption) |
| Limit | Amount of distributed profit | Amount of disposal or liquidation bonus |
Transfer of the disposal or liquidation proceeds of an investment financed in foreign currency is guaranteed with no minimum holding period, except for an investment financed through a convertible term account, which only becomes convertible two years after it was made.
Special case of Moroccans Residing Abroad (MRE)
Moroccans Residing Abroad benefit from a specific regime. Two situations arise:
- Investment in foreign currency (transfer from abroad or debit of a foreign currency account): the MRE benefits from the same transfer guarantees as any foreign investor.
- Investment in convertible dirhams (MAD): when the MRE invests from a convertible dirham account (Form 4), the investment is treated as foreign currency financing and carries the same guarantees for the transfer of income and disposal proceeds.
In all cases, the MRE must ensure the investment is channelled through a domiciliary bank and that fund traceability is established from the outset.
Step-by-step practical procedure
- File preparation — Gather all supporting documents listed above according to the type of transfer (dividends or capital).
- Submission to the domiciliary bank — Submit the complete file to your authorised intermediary bank. The bank verifies document compliance and amount consistency.
- Tax verification — The bank ensures all tax obligations have been met: corporate tax, WHT and capital gains tax where applicable.
- Transfer execution — If the file is compliant, the bank processes the foreign currency transfer to the foreign account designated by the investor. No prior Exchange Office authorisation is required for current transfers.
- Ex post reporting — The bank reports the transaction to the Exchange Office through its periodic bank declarations (Art. 19); the investor has nothing to file.
Processing time depends on the bank; the IGOC does not set any.
Practical tips
- Prepare the file early, starting from the distribution GM, to avoid delays.
- Check the tax treaties between Morocco and the beneficiary’s country of residence: the domestic rate (11.25% for dividends paid out of 2025 profits, 10% for profits of 2026 and later years) may be reduced by treaty, to as low as 5% in some cases.
- Maintain a complete record of all flows since the initial investment: this is the key to a smooth transfer.
Read also
