Invest in Morocco – Tax and legal framework


Why you should invest in Morocco :

Morocco is an increasingly attractive country for foreign investment.

For decades, the government has given importance to foreign investment. Foreign investments are considered as a factor to support the growth of the country.

The country’s legal and fiscal framework have known several reforms and amendments. The purpose is to guarantee a modern business climate and international standards for investors from different backgrounds.

In fact, since the late 1990s, several laws have been enacted in Morocco as part of the improvement and modernization of its business system.

As such, to invest in Morocco, every investor should get to know the current laws, rules and institutions.


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Freedom of investment in Morocco

As part of the promotion of foreign investment, Morocco has implemented a system that meets international standards. Thus, the requirement of a local investor has been removed. In Morocco, a company can be full owned by foreign investors (100% foreign share capital)

A foreigner can freely acquire movable and immovable property without restrictions.

Moreover, Morocco has is part of international conventions to guarantee and protect investment.

Morocco has also adopted an investment charter that encourages investment. This charter legally reinforces the principle of freedom to invest in Morocco. In addition, the charter promotes investment opportunities in Morocco.

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Invest in Morocco – Foreign Exchange regime

Morocco is actively pursuing the liberalization of its economy.

One of the first key changes was increasing the flexibility of the foreign exchange regime and the gradual liberalization of foreign currency transactions.

Thus, Morocco has set up a derogatory regime. Indeed, this system allows gains (dividends, interests…) to be freely transferable abroad.

These measures provide investors with an additional guarantee that ensures the security for their investments.

Generally, the Moroccan dirham is not convertible. Therefore, these measures concern especially foreign investors who have invested in foreign currency.

Amendment to the labor code

This code is characterized by its conformity with international standards as provided for in the conventions of the United Nations and its labor related specialized organizations.

Indeed, the objective of this code is to guarantee the rights of  both, the working class and investors.

This code protects trade union rights, prohibits child labor and promotes the positive inclusion of women

In addition, it defines the limits on the rights of employees and employers by including provisions such as:

  • Setting trial and notice periods
  • Regulation of fixed-term and open-ended contracts
  • Fixing the terms of dismissal and resignation
  • The creation of entities that control and regulate disputes and conflicts, such as labor inspectors
  • Terms and conditions for overtime, weekly day offs and other terms

Copyrights and related rights

The law on copyright aims to modernize the system for protecting the rights of creators as well as protecting works. In addition, it allows the alignment of the national legislation with Morocco’s commitments regarding signed international agreements.

Under this law, an organization was established for the protection and use of copyright and related rights.

For more information, visit the Moroccan bureau of copyrights


Industrial Property

The Law on the Protection of Industrial Property contains provisions on the trademark opposition system.

Thus, the legal framework instituted regulates the measures of prevention of counterfeiting. These measures apply both at the borders and within the territory.

This law also establishes a system for the protection of sounds signals and olfactory brands.

L’OMPIC (Moroccan Office of Industrial and Commercial Property) is responsible for the protection of industrial property, as well as the filing of trademarks in electronic form.

In addition, Morocco has adhered to various international agreements on industrial property. This provides investors with the possibility of protecting their properties both nationally and internationally.

In conclusion, Morocco has aligned its own local standards on industrial property with the highest international standards.

Freedom of prices and competition

Law 104-12 on the freedom of prices and competition aims to define the main rules for the protection of competition.

Indeed, it sets the basic principle of protecting freedom of competition. The law in Morocco prohibits the establishment of monopolies. Therefore, this law aims to stimulate economic efficiency and improve consumer welfare. It explicitly aims to ensure transparency and fairness in commercial relations.

In Morocco, the Competition Council (Conseil de la Concurrence) is the entity responsible for the proper application of this principle. It ensures the transparency of economic relations. It monitors mainly:

  • Free competition in markets
  • Anti-competitive practices
  • Unfair trade practices (price rigging, collusion…)
  • Monopoly operations

Free trade agreement – an incentive to invest 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

Invest in Morocco – Tax regime

The Moroccan tax system is governed by the General Tax Code (CGI). The mains taxes in Morocco are:

  • Income Tax (Impôt sur le Revenu – I.R.)
  • Corporate Income Tax (Impôt sur les Sociétés – I.S.)
  • Value Added Tax ( V.A.T.)

In addition, the current legislative framework offers certain tax exemptions and reductions to encourage and promote investment in certain sectors in Morocco (Casa Finance City, Industrial Acceleration Zone, Offshoring…)

Morocco is also party to several treaties to avoid double taxation.


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Foreign Investment in Morocco

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