Morocco's legal framework is designed to encourage foreign investment by offering clear protections and attractive incentives. The 2011 Constitution guarantees the right to property, and the Investment Charter (Law No. 18-95), recently revamped by the new Framework Law No. 03-22 of December 9, 2022, reaffirms the commitment to ensuring fiscal and legal stability for investors.
Morocco is a signatory to numerous international agreements that strengthen this protection, such as the 1965 ICSID Convention (ratified in 1967), the WTO treaty including the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), and multiple bilateral investment treaties (BITs), notably with the European Union (Free Trade Agreement - FTA) and several countries like France and China. These commitments guarantee national treatment for foreign investors and the free movement of capital. For instance, exchange control regulations allow for the free repatriation of profits and invested capital, subject to compliance.
Legal Guarantees for Foreign Investors
Foreign investors in Morocco benefit from the same treatment as national investors, in line with the principle of national treatment. Furthermore, the principle of non-retroactivity of fiscal and civil laws provides significant legal certainty. In case of disputes, Moroccan law recognizes and encourages recourse to international arbitration. Institutions like the Casablanca International Mediation and Arbitration Centre (CIMAC) and the Chamber of Commerce's Dispute Resolution Center offer effective alternatives to state court proceedings. Morocco has modernized its arbitration legislation with Law No. 08-05 of 2006, amended by Law 95-17 in 2017, and recognizes the enforcement of foreign arbitral awards, including those rendered under ICSID rules.
Understanding these protections is crucial, and for a complete overview, our Legal Framework for Doing Business in Morocco: An Investor's Guide provides in-depth information.
Financial and Tax Incentives
Numerous fiscal and financial incentives have been implemented to attract investment. Law No. 18-95, and especially its overhaul via the 2022 Investment Charter, provides significant benefits:
- Exemption from business tax for the first five years of activity.
- A degressive corporate income tax (CIT) exemption, potentially ranging from a full exemption to a reduced rate (e.g., 0% then 10% tax over a period of 5 to 10 years, depending on the case).
- Exemption from registration fees for certain investment-related acts.
The new main investment support scheme, stemming from the 2022 Charter, introduces investment premiums (grants). These include:
- Five "common premiums" linked to criteria such as job creation, gender equality, sustainable development, and local integration.
- Territorial premiums, which can increase the benefit by up to an additional 15% in certain regions.
- Sectoral premiums, offering an additional 5% benefit for priority sectors such as industry, digital, tourism, and renewable energy.
Investment agreements can be concluded directly with the State, often through the Regional Investment Center (CRI), to formalize the granting of these benefits, in accordance with Framework Law No. 03-22 and its implementing decrees. For details on how these incentives tie into the broader tax system, see our article on Business Taxation in Casablanca.
Other Facilities for Investors
Morocco has also developed free zones and industrial acceleration zones that offer advantageous tax conditions, such as reduced CIT rates (e.g., 20-25% instead of the standard applicable rate). Public funds, such as the Central Guarantee Fund (now Tamwilcom) and the Mohammed VI Fund for Investment, can partially co-finance certain large-scale projects. The country's infrastructure (ports, airports, electricity grids) has undergone considerable improvements to support economic development.
Finally, to simplify administrative procedures, one-stop shops like Casa Invest and a dedicated electronic investment portal have been established. These platforms aim to centralize and expedite procedures for investors. If you're starting from scratch, our guide on how to register a company in Casablanca will be invaluable.