Dividend Transfer & Capital Repatriation in Morocco (IGOC 2026): Complete Guide for Foreign Investors

The General Instruction on Exchange Operations (IGOC) 2026 is a cornerstone of Morocco's attractiveness for foreign investors. It guarantees the right to freely transfer dividends, net profits, and proceeds from the sale of investments. This guide, brought to you by iHub, details the conditions, required documents, and step-by-step procedure to exercise this essential right.

The Transfer Guarantee: A Key Commitment from Morocco

Morocco is committed to ensuring the free transfer of investment income, a fundamental principle of its exchange policy. IGOC 2026 reinforces this commitment by offering non-resident investors the possibility to repatriate the following categories of income:

• Dividends and profit shares distributed by Moroccan companies.
• Net profits realized by branches, liaison offices, or permanent establishments of foreign companies.
• Proceeds from sale or liquidation resulting from the sale of participations, the dissolution of a company (for which iHub can assist you with the necessary Statutory Amendments), or a capital reduction.

This guarantee is granted without ceilings or prior authorization from the Exchange Office, provided that the initial investment was made in accordance with the current exchange regulations. iHub can help you understand the regulatory nuances when undertaking startup legal entity creation in Morocco.

Eligibility Conditions for Transfer

To benefit from this transfer right, the investor must meet several cumulative conditions:

• Initial Investment in Foreign Currency: The initial contribution must have been made in convertible currencies through an approved domiciliation bank in Morocco. Rigorous traceability of this contribution is essential, as the bank maintains a foreign investment file that will serve as a reference for all subsequent transfers.
• Non-Resident Status: The beneficiary must provide proof of their non-resident status under Moroccan exchange regulations. This status is distinct from tax residency and is determined by the person's center of economic interests.
• Declaration with the Domiciliation Bank: Any foreign investment must be declared to an approved intermediary bank acting as the domiciliation bank. It is this bank that processes transfer requests and verifies the conformity of supporting documents.

Required Documents for Transfer

Preparing the transfer file requires collecting several documents, the nature of which varies depending on the type of income to be transferred.

For Dividend Transfer:

• Bank certificate of foreign currency contribution: Issued by the domiciliation bank, it proves the origin of the initial investment.
• Minutes of the General Assembly: Duly certified, it must state the decision to distribute dividends.
• Company's tax declaration (liasse fiscale): For the relevant fiscal year.
• Receipt for payment of Corporate Income Tax (IS) and, if applicable, withholding tax (WHT) on dividends (at the conventional or legal rate).
• Beneficiary's tax residency certificate: Issued by the tax administration of their country of residence, it is crucial for applying double taxation treaties.
• Investor account statement: Maintained by the domiciliation bank, it traces all movements related to the investment.

For Repatriation of Sale Proceeds:

In addition to the above documents (excluding GA minutes), you will need to provide the registered deed of sale, the capital gains declaration, and the receipt for any capital gains tax due. Legal Counsel can be invaluable for these complex operations.

Distinction Between Dividend Transfer and Capital Repatriation

It is crucial to clearly differentiate between these two operations:

• Dividend Transfer: This is current income from distributable profits, carried out after each General Assembly for distribution. It is subject to withholding tax (WHT) on dividends (11.25% in 2026, 10% from 2027, or a lower conventional rate).
• Capital Repatriation: This is a capital operation, occasional (following a sale, liquidation). Its basis is the initial contribution adjusted for capital gains, and it is subject to capital gains tax (20% or conventional exemption). The repatriation of initial capital invested in foreign currencies is guaranteed at any time, without a minimum holding period condition.

Effective accounting services for your company are essential to clearly distinguish these flows.

Special Case of Moroccans Residing Abroad (MREs)

MREs benefit from a specific framework for transferring their investment income:

• Investment in Foreign Currency: If the investment is made via a foreign currency account or a convertible term account, the MRE enjoys the same transfer guarantees as any foreign investor.
• Investment in Convertible Dirhams (MAD): When the investment comes from a convertible dirham account, the transfer of income is guaranteed within the limit of the invested amounts and related income.

In all cases, it is crucial that the MRE's investment is channeled through a domiciliation bank and that the traceability of funds is ensured from the outset.

Practical Step-by-Step Procedure

1. File Preparation: Gather all required supporting documents based on the type of transfer (dividends or capital).
2. Submission to the Domiciliation Bank: Submit the complete file to your approved intermediary bank, which will verify the conformity of the documents and the consistency of the amounts.
3. Tax Verification: The bank will ensure that all tax obligations have been met (Corporate Income Tax, WHT, capital gains tax if applicable).
4. Transfer Instruction: Once the file is validated, the bank proceeds with the transfer in foreign currency to the foreign account designated by the investor. No prior authorization from the Exchange Office is required for current transfers.
5. Ex Post Declaration: The bank submits a report to the Exchange Office as part of its periodic reporting obligations.

The average processing time is generally five to ten working days after receipt of a complete file.

Practical Tips for a Successful Transfer

• Anticipate file preparation: Start collecting documents as soon as the General Assembly distributes dividends to avoid any delays.
• Consult tax treaties: Check agreements between Morocco and your country of residence. The internal withholding tax rate (11.25% in 2026, 10% from 2027) may be reduced, sometimes to 5%, by a double taxation treaty.
• Maintain a complete history of flows: Keep a detailed record of all financial movements since the initial investment. This traceability is the key to a smooth and hassle-free transfer process.

Understanding and applying IGOC 2026 is essential for any foreign investor in Morocco. By following this guide, you ensure a compliant and efficient fund repatriation process. iHub is at your disposal for personalized support in your investment and capital repatriation endeavors.