Morocco · Tax regime

Casablanca Finance City Status

Reformed Last verified July 2026

Open but substantially reformed under OECD pressure. The OECD Forum on Harmful Tax Practices, in its consolidated peer review results updated to February 2026, rates CFC 'Not harmful (amended)' — ring-fencing removed, substance requirements in place, grandfathering of the old regime ended 31 December 2022. Corporate tax converged from 15% to 20%.

For a family office running African investments, CFC is the most credible platform on the continent after Mauritius: five years at zero corporate tax then 20% with no profit ceiling, no withholding on dividends to non-residents, and a flat 20% personal rate for up to ten years for the executives who run it. It survived the OECD review with its economics broadly intact, which is more than the Tangier offshore regime managed.

Qualifying routes

CFC status for financial services, professional services, holding companies and regional HQs

no minimum investment; the price of admission is genuine Casablanca substance

The facts

Total landed cost
No investment threshold. Costs are the substance itself — a real Casablanca office, qualified local management, and Moroccan incorporation — realistically EUR 150k+ a year for a credible regional HQ.
Timeline
3–9 months — status granted by the CFC Authority against a business plan
Physical presence
Corporate substance is mandatory: physical Casablanca office, qualified management on the ground, viable business plan
Family
not applicable — this is a corporate regime, though CFC employees access the flat 20% personal rate
Permanent residency
None directly — CFC is a corporate status, not an immigration route
Citizenship
None
Language test
not applicable
Dual citizenship
Permitted
Requirements
Moroccan incorporationphysical office in Casablanca Finance Cityqualified management resident in Moroccoviable business plan approved by the CFC AuthorityAML/CFT complianceeligible activity (not banking or insurance)
What can go wrong
  • The economics changed: corporate tax converged from 15% to 20% after the initial five-year exemption, and the old grandfathered regime ended on 31 December 2022. Anyone quoting 15% is working from pre-reform material.
  • Substance is now the whole test. Ring-fencing is gone, which means CFC is no longer an offshore wrapper you can hold from abroad — you need a real office, real people and real management in Casablanca.
  • Credit institutions and insurance/reinsurance companies are excluded from the regime entirely.
  • The minimum contribution is exempt for five years and then runs at 0.25% of turnover — a turnover tax that bites hardest on high-volume, low-margin activity.
  • Morocco's broader tax system is worldwide and reaches 37% personally. CFC's flat 20% employee rate is capped at 10 years and applies to salary only.
  • OECD ratings are reviewed continuously. 'Not harmful (amended)' is a current assessment, not a guarantee, and Morocco has already had one regime abolished outright.
Sources (4)

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