Pillar 04 · Investment Policy
Investment Charter & Government Incentives
Executive Summary
Morocco's Investment Charter, adopted as framework Law 03-22 in December 2022, consolidated what had been a more fragmented incentive landscape into one national instrument covering direct grants, VAT and professional tax exemptions, and reduced customs duties — with additional premiums layered on for investments in less-developed provinces or priority sectors. It excludes agriculture, which remains under separate sectoral legislation. The practical entry point for any investor is the Regional Investment Center (CRI), which reviews applications against a business plan and published compliance documents on an indicative 75-day timeline.
Key Takeaways
- Direct grants reach up to 30% under the common track, stacking with territorial (+15%) and sectoral (+10%) premiums.
- Qualifying investment gets a 36-month VAT exemption and a 5-year professional tax exemption.
- A temporary 20%-capped corporate tax rate applies to MAD 1.5M+ investments through 2026 only.
- Agriculture is excluded from the Charter and governed by separate sectoral legislation.
- The CRI review process has a published, indicative 75-day timeline from a complete application.
Key Facts
Common direct grant
Plus up to 15% territorial and 10% sectoral premiums
VAT exemption on investment goods
From the start of activity
Professional tax exemption
From the start of activity
CRI review timeline
Indicative, from complete application
What the 2022 Charter actually changed
The principal source of investment legislation in Morocco is the Investment Charter adopted in December 2022 under framework Law 03-22. It applies to both foreign and domestic investment, with agriculture excluded and left to its own sectoral legislation.
The Charter's core contribution was standardization: rather than negotiating incentives deal-by-deal, investors now apply against a published grid of grant rates, exemption periods and eligibility criteria — reducing the negotiation variability that previously made outcomes harder to predict.
Direct grants: how the percentages stack
The Charter provides direct grants of up to 30% under the 'common' track, with an additional territorial premium of up to 15% for investments in designated regions, and a further sectoral premium of up to 10% for priority industries — meaning a well-targeted investment can, in principle, stack meaningfully above the 30% baseline.
Alongside the grants: VAT exemption on imported and locally acquired investment goods for 36 months from the start of activity, a 5-year professional tax exemption, and reduced customs duties of 2.5% or 0% on qualifying capital goods.
The temporary 20%-capped corporate tax incentive (2023–2026)
A separate, time-limited incentive applies between 2023 and 2026: companies investing at least MAD 1.5 million in fixed assets over a five-year period can benefit from a corporate tax rate capped at 20% during the initial fiscal years of activity — a meaningful reduction relative to Morocco's standard corporate tax schedule.
Time-sensitive
This incentive's 2026 sunset date makes it a genuine timing consideration for any qualifying investment currently in planning.
Regional and sectoral enhancements
The Charter builds in enhanced packages for investment in less-developed southern, eastern and interior provinces — elevated state contributions toward land acquisition, infrastructure subsidies, extended tax exemption durations, and additional employment-linked bonuses, designed explicitly to pull capital toward regions outside the Casablanca-Rabat-Tangier corridor.
The CRI process: what actually gets filed
Applications are filed at the Regional Investment Center (CRI) covering the project's location, with a detailed business plan, company bylaws, and tax and CNSS (social security) compliance certificates. The relevant regional or national investment commission reviews the file, with a state agreement typically signed within an indicative 75-day timeline once the application is complete.
Market Outlook
Expect continued fine-tuning rather than another wholesale rewrite before the temporary tax incentive's 2026 sunset forces a policy decision — either an extension, a replacement, or a genuine expiry. Investors with multi-year capital deployment plans should model both scenarios rather than assuming renewal.
“The 20%-capped corporate tax incentive has a hard 2026 sunset. We see deals lose real value simply because the capital deployment timeline slipped past it — treat that date as load-bearing, not a footnote.”
— WE ARE TOGETHER Research Desk
- Standardized, published incentive grid — not a case-by-case negotiation
- Direct grants stacking to well above 30% for regionally or sectorally prioritized investments
- 36-month VAT exemption and 5-year professional tax exemption on qualifying investment
- A published, indicative 75-day CRI review timeline
Case Studies
Regional investment premiums
Cross-sector, priority provinces
The Charter's territorial premium — up to 15% above the common grant rate — is specifically structured to make southern, eastern and interior-province projects competitive against the traditional Casablanca-Rabat-Tangier corridor.
Frequently Asked Questions
Sources
- Kingdom of Morocco — Investment Charter, Framework Law 03-22 (December 2022)
- UNCTAD Investment Policy Hub — Morocco adopts a new Investment Charter
- US Department of State — Investment Climate Statements: Morocco, 2022–2025
Figures reflect the most recently published data at the time of writing. Confirm current values directly with the cited institution before relying on them for a specific transaction.
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