Foreign Investments in Morocco: Fund Transfer Guarantee & Exchange Regulations (IGOC 2026)

Foreign Investments in Morocco: A Solid Guarantee for Investors

Morocco has solidified its position as a preferred destination for foreign direct investments (FDI), thanks in part to an attractive regulatory framework and a robust fund transfer guarantee. The Moroccan exchange regime, governed by the General Instruction on Exchange Operations (IGOC) 2026, ensures full convertibility for non-resident investors' operations.

This convertibility is a crucial pillar of Morocco's economic policy, providing investors with the security of repatriating their income and capital without hindrance. iHub sheds light on the key provisions of IGOC 2026 concerning FDI.

Who is Covered by the FDI Regime in Morocco?

IGOC 2026 broadly defines foreign investors to encourage a wide range of participants:

• Any foreign legal entity (company headquartered outside Morocco).
• Any foreign natural person, whether resident or non-resident in Morocco.
• Moroccan Residents Abroad (MRA) who invest in Morocco using repatriated foreign currency funds.

This broad inclusion ensures that diverse investor profiles can benefit from the transfer guarantee, provided their investment financing complies with IGOC regulations.

The Transfer Guarantee: A Fundamental Principle

The principle of the transfer guarantee is a major advantage, covering two crucial aspects for any investor:

• Investment Income: This includes dividends, profit shares, interest on shareholder current accounts, rental income, and net profits of permanent establishments. The transfer applies to the net amount, after deduction of Moroccan taxes.
• Proceeds from Sale or Liquidation: Investors can repatriate the entire net proceeds (including capital gains) resulting from the sale of their holdings or the liquidation of their Moroccan entity.

Eligibility Conditions for Transfer

To benefit from this guarantee, the investment must have been made using repatriated foreign currency through the approved banking system. The bank plays a key role in verifying the traceability of funds from the initial entry and retains the investment file, which is an essential document for all future transfers. For compliant accounting and management of these files, iHub's expertise is invaluable.

FDI Financing Methods

IGOC 2026 offers several avenues for financing FDI, each granting convertibility rights:

• Repatriation of foreign currency: Cash contributions via international bank transfer are the most common method.
• Consolidation of shareholder current accounts (CCA): Statutory amendments can convert foreign currency advances made by the foreign investor into share capital.
• Reinvestment: Undistributed profits or sale proceeds can be reallocated to a new investment in Morocco, thus maintaining convertibility.
• Conversion of commercial debts: Debts held by a foreign supplier or partner against a Moroccan company can be converted into equity participation.

Each financing method is meticulously documented in the investment file, ensuring complete traceability and compliance during transfer requests.

Divestment and Liquidation of Investments

Sale between Non-Residents

IGOC 2026 authorizes settlement abroad if the sale occurs between a non-resident seller and a non-resident buyer. No foreign currency flows through Morocco in this case. The buyer automatically inherits the convertibility status of the initial investment, thus ensuring the continuity of future transfer rights.

Sale to a Resident

If the buyer is a Moroccan resident, payment is made in Dirhams in the local market. The non-resident seller can then transfer the net sale proceeds abroad, after settling capital gains taxes and providing the corresponding tax receipts.

Company Liquidation

In the event of the liquidation of a foreign-participated company, the investor can transfer the net liquidation proceeds (liquidation surplus) after fulfilling the following conditions:

• Adoption of the Extraordinary General Meeting (EGM) minutes deciding the dissolution and confirming the closure of liquidation. For any assistance in such procedures, iHub offers legal advice.
• Settlement of all tax and social debts.
• Production of liquidation balance sheets and tax receipts.

New Provisions Introduced by IGOC 2026

IGOC 2026 introduces significant advancements to optimize the FDI environment:

• Asset and liability guarantee: Moroccan residents can now grant an asset and liability guarantee to non-resident investors during divestments. This crucial measure facilitates mergers and acquisitions (M&A) involving Moroccan sellers and foreign acquirers, securing the latter against post-acquisition risks.
• Facility for long-term resident foreigners: Foreign natural persons residing in Morocco for at least 10 years benefit from a new flexibility. They can transfer up to 2 million Dirhams per year without having to justify the foreign currency origin of the funds, recognizing their long-term integration into the Moroccan economy.

Essential Documentary Obligations

For any operation related to an FDI, the approved intermediary bank requires a set of documents to ensure compliance and traceability. Good accounting management is essential for this:

• Certified balance sheets and Income Statements (CPC/P&L) for the relevant financial year.
• The Minutes of the General Meeting (GM) or EGM, depending on the nature of the operation (dividend distribution, sale, liquidation).
• Tax receipts proving payment of due taxes (withholding tax, corporate tax, capital gains tax).
• The updated investment file, detailing the complete history of contributions and transfers.
• The auditor's report, if applicable.

These documents must be kept by the bank for five years and made available to the Office des Changes. Ensuring the regularity of these documents is a service that iHub can help you guarantee, thus saving you from potential disputes or regulatory issues.

Conclusion

Morocco's foreign direct investment regime, through IGOC 2026, offers a secure and attractive framework for international investors. The guarantee of fund transfer, coupled with new facilities, strengthens the Kingdom's appeal. By understanding and complying with these regulations, investors can maximize the benefits of their commitments in Morocco with the support of experts like iHub.