Morocco Investment Income Guide 2026

Overview — Taxation of Investment Income

Investment income in Morocco is generally subject to withholding tax at source (Retenue à la Source, RAS), which is often the final tax for individual investors. For companies, investment income is included in taxable income and taxed at the corporate rate (IS), with the withholding tax treated as a credit. The rates vary significantly depending on the type of instrument — dividends, bank deposits, bonds, and mutual funds each have their own specific treatment.

Dividend Income — 15% Final Withholding

Dividends received by Moroccan resident individuals are subject to a final withholding tax of 15%. The tax is withheld by the paying company (or the depositary). Key points:

• Individuals: 15% final withholding — no further tax liability
• Companies: Dividends are included in taxable income at 20% IS, with the 15% withholding credited. The effective tax rate on dividends for companies depends on their profitability
• Non-residents: 15% withholding, subject to reduction under applicable double tax treaties
• Dividends from Moroccan companies paid to non-resident corporate shareholders may be exempt under the participation exemption regime (if at least 10% holding and 2-year holding period)

Bank Interest — 20%–30% Withholding

Interest income from bank deposits and savings accounts is subject to withholding tax as follows:

• Savings accounts (standard): 20% withholding for amounts up to MAD 120,000 of interest per year; 30% on interest exceeding MAD 120,000
• Regulated savings (Livret d'Épargne, special accounts): Exempt up to certain limits (typically MAD 5,000 of interest per year)
• Term deposits (comptes à terme): 20% withholding on interest
• Foreign currency accounts: 20% withholding on interest

For individual investors, the withholding is final. For companies, the interest is included in taxable income with the withholding credited.

Government and Corporate Bonds

Interest income from bonds is taxed at different rates:

• Government bonds (Bons du Trésor): 10% final withholding for individuals; 20% for corporate investors (with credit)
• Corporate bonds (obligations): 20% withholding for both individuals and companies
• Sukuk (Islamic bonds): 10% withholding (similar to government bonds for certain issuances)
• Capital gains on bonds: Taxed as ordinary income (IR or IS) — gain calculated as sale price minus acquisition cost

Government bond interest at 10% is particularly attractive for individual investors, and the Moroccan government actively promotes retail investment in Treasury bonds.

Mutual Fund Distributions (OPCVM)

Distributions from mutual funds (OPCVM — Organismes de Placement Collectif en Valeurs Mobilières) have specific tax treatment:

• Money market funds (OPCVM monétaires): Distributions are taxed at 20% (same as interest)
• Bond funds (OPCVM obligataires): Distributions are taxed at 15%–20% depending on the composition
• Equity funds (OPCVM actions): Distributions are taxed as dividends (15%)
• Capital gains from sale of fund units: Taxed as ordinary income at IR rates
• Exempt funds: Certain OPCVM investing in government securities may be partially or fully exempt

Foreign Investment Income

Moroccan tax residents are taxed on worldwide investment income. Foreign-source dividends, interest, and other investment income must be reported on the annual tax return. A foreign tax credit (Crédit d'Impôt Étranger) is available for withholding taxes paid abroad, limited to the Moroccan tax attributable to the foreign income. Morocco has a network of over 70 double tax treaties that may reduce foreign withholding taxes.

Reporting and Compliance

For investment income subject to final withholding (dividends, bank interest, bond interest), individual taxpayers generally do not need to report the income on their annual tax return. However, taxpayers who wish to claim the foreign tax credit or who receive foreign investment income must file a declaration. The DGI receives automated data from banks and financial institutions regarding interest and dividend payments, facilitating cross-checking.

FAQs

Are dividends from Moroccan companies really only 15%?

Yes, for individuals, the 15% withholding is the final tax on dividends. There is no additional IR or social contribution. This makes dividend-paying Moroccan companies attractive for income-focused investors.

Is there any tax-free savings account in Morocco?

Yes, certain regulated savings accounts (Livret d'Épargne) offer interest exemption up to MAD 5,000 per year. Additionally, interest from certain savings products for young people and housing savings plans (PEL) may qualify for exemptions.

Do I need to report foreign investment income if tax was already withheld abroad?

Yes, you must still report foreign investment income on your Moroccan tax return. The foreign tax credit prevents double taxation, but the filing obligation remains. Failure to report foreign income can lead to penalties.

Disclaimer

This guide provides general information about Moroccan investment income taxation for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Moroccan tax advisor (conseil fiscal) or the DGI directly for advice specific to your situation. InvestmentKit does not provide tax advice.