A blend of the traditional and modern, Morocco is an attractive destination and gateway for foreign investment across sectors. A stable political and social political environment has enabled many business to flourish. Answers to some pertinent questions as given by an embassy official:
Can foreigners own agricultural land in Morocco?
Foreign real estate ownership is allowed in Morocco, though foreigners cannot buy agricultural land.
There are no current requirements to obtain Moroccan Residency in order to be able to purchase a property.
It is best to open a Moroccan bank account that enables foreign currency to be converted to Dirham to be used for the transaction, and for easier repatriation of funds in the future.
What are the chief crops that grow in Morocco?
The warm climate and rains allow for cereal production of winter wheat and barley, with vegetables, fruits, grapes, olives and pulses grown during the summer. Increasing irrigation is opening up the production of other export crops such as tea, sugarcane, cotton, tobacco, sunflowers and soybeans.
The most important crops cultivated for domestic consumption are cereals (wheat, barley, maize, rice and sorghum), although pulses such as broad bean, peas, chickpeas and lentils, are also important.
Government support for FDI.
Invest in Morocco (AMDI), your partner for Investment and Business
With its network of representative offices abroad and support of its institutional partners (ministries, Investment Regional Centers, sectoral agencies …) and private actors, Invest in Morocco (AMDI) offers a public, free and professional service.
It offers you, within a single structure, a wide range of services and helps you to complete the development of your activities in Morocco.
It offers you a team of professionals who will provide you advising, assisting and monitoring for your projects.
Invest in Morocco (AMDI) also aims to bring you the best environment for the development of your business:
- Proposing legislative reforms related to investment and by easing administrative procedures
- Providing the Secretariat of the Investment Commission
- Being one of the levers of implementation of the National Pact for the Emergence of Industrial
In addition to the tax exemptions granted under the common law, Moroccan law provides specific financial, tax and customs advantages to investors, as part of agreements or investment contracts to be concluded with the State, provided that they meet the required criteria.
- The contribution of the state to certain investment expenses: Investment Promotion Fund;
- The contribution of the state to certain expenses for the promotion of investment in specific industrial sectors and the development of modern technologies: the Hassan II Fund for Economic and Social Development;
- Exemption from customs duties under Article 7.I of the Finance Act No. 12/98;
- Exemption from import VAT under Section 123-22 °-b of the General Tax Code.
Significant information for setting up industry in Morocco
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Investors in real-estate businesses also have tax exemptions from and tax reductions in the following taxes:
- Urban Tax for new constructions for 5 years
- TPI (tax on profits from property) for the first sale of local authority housing
- The “patente” for 5 years starting from the beginning of a fiscal year of a professional activity, an industry or a business
- The tax that all undeveloped sites are subjected to, if the plot of land is subjected to the “taxe d’édilité” and is worked by companies which are in business or if the plot of land has been bought less than 3 years before
- Tax on construction deals for local authority housing
- “Droit d`enregistrement”: 2.5% reduced rate for the acquisition of premises for professional use or of plots of land
- “T.V.A”: 14% reduced rate for renovations, repairs or building works
- “I.S.”: allowance of 50% for the first 5 fiscal years of the activity in some determined areas.
The money received from abroad should pass through an account in convertible Dirham which ensures convertibility regime for foreign investors. This account allows investment operations in Morocco and guarantees the transfer of proceeds of the investment as well as the repatriation of the proceeds and the gain of a possible resale.
It is recommended to open the account in convertible Dirham upon arrival in Morocco in order to rapidly have the sums needed for notarial transactions. It is possible to feed a Moroccan account from abroad by SWIFT.