Free Zone or Offshore Company in Morocco: Key Differences and How to Choose
Investors and directors often confuse two very different concepts: the free zone (Industrial Acceleration Zone, ZAI) and the offshore company. Both were long associated with tax benefits in Morocco, but they do not follow the same logic — and the historical offshore regime has changed significantly. This article clarifies what distinguishes a free zone from an offshore company in Morocco, and helps determine the relevant route today.
Two concepts not to confuse
The difference between a free zone and an offshore company lies in the very nature of the regime: one is a territorial establishment scheme in Morocco, the other a status historically reserved for foreign-currency financial activities.
The free zone (Industrial Acceleration Zone)
A ZAI company is a Moroccan-law company, physically established within a zone’s perimeter, which benefits from a special tax regime provided by Law 19-94 and Article 6 of the General Tax Code: full IS exemption for five years, then a corporate income tax rate that depends on the company’s situation, with VAT exemptions on local equipment and services and exemption from import customs duties. This framework is detailed in our guide to the tax benefits of Industrial Acceleration Zones.
The offshore company (Tangier offshore financial place)
In Morocco, the term “offshore” historically refers to the Tangier offshore financial place, created by Law 58-90. It governed two types of entities: offshore banks and offshore holding companies — the latter defined as companies with capital in convertible foreign currency, whose exclusive purpose is portfolio management and the holding of participations, and whose operations are carried out in foreign currency. It is therefore a regime targeted at international financial activities, not a standard industrial or commercial establishment scheme.
What changed: the end of the offshore favourable regime
This is the essential point, often overlooked: the favourable tax regime of the Tangier offshore financial place was abolished in 2019. The special advantages these structures historically enjoyed were rolled back as part of aligning Moroccan taxation with international standards. In other words, setting up an “offshore company” in the classic sense no longer provides the tax advantage once attributed to it. Any arrangement presented as “offshore with exemption” must today be examined with the greatest caution and validated by a professional.
Comparison: free zone vs offshore company today
| Criterion | Free zone (ZAI) | Offshore company (Tangier, Law 58-90) |
|---|---|---|
| Nature | Territorial establishment in Morocco | Foreign-currency financial status |
| Activities | Industry, trade, eligible services | Banking / holding (portfolio management) |
| Favourable regime | In force (Law 19-94 / Tax Code) | Favourable regime abolished in 2019 |
| Current relevance | Strong for eligible projects | Very limited on the tax front |
Which route to favour today
For an investor seeking an advantageous and secure tax framework in Morocco, the free zone remains the relevant route provided the activity is eligible and establishment within a zone is possible. The classic offshore status, by contrast, has lost its tax appeal. For a participation-holding activity, other frameworks must be studied case by case. And if the question is between free zone and the general regime, our comparison of free zone vs standard company provides complementary insight.
How Cabinet Dami & Associés supports you
Distinguishing a free zone from an offshore company in Morocco and choosing the right framework requires an up-to-date reading of the regulations. Since 1991, Cabinet Dami & Associés has advised directors and investors on these trade-offs, in Casablanca and Tangier Free Zone. Our experts analyse your project, rule out obsolete arrangements and secure the most suitable solution. To discuss it, contact our experts.
The corporate income tax (IS) rate applicable after the exemption period depends on each company’s situation — in particular whether the activity is export-oriented and whether there is local turnover (a so-called “mixed” activity). Cabinet Dami carries out a tailored study to determine the regime and rate that apply to your specific case.
FAQ — Free zone vs offshore company in Morocco
Is an offshore company in Morocco still tax-exempt?
The favourable tax regime of the Tangier offshore financial place (Law 58-90) was abolished in 2019. The tax advantage historically associated with this status therefore no longer exists under the same conditions; each situation must be validated with a professional.
Are free zone and offshore the same thing?
No. The free zone is a territorial establishment scheme in Morocco open to industry, trade and certain services. Offshore targeted foreign-currency financial activities (banks, holdings).
Which regime offers a real tax advantage today?
For eligible projects, the Industrial Acceleration Zone (free zone) regime remains in force, with a five-year IS exemption, then a corporate income tax rate that depends on the company’s situation.
Conclusion
Between a free zone and an offshore company in Morocco, confusion can be costly: the classic offshore advantage was abolished in 2019, whereas the free zone regime remains fully applicable to eligible activities. For a choice grounded in current regulations, talk to the experts at Cabinet Dami & Associés.
Official sources: AMDIE — Law 58-90 (offshore financial places); General Tax Directorate.
Further reading: free zone tax Morocco.
The tax and regulatory information presented in this article reflects the state of the law at the time of writing (June 2026) and is subject to change, in particular through future finance laws. It is provided for information purposes only and does not constitute personalised advice. For an up-to-date analysis tailored to your situation, contact Cabinet Dami & Associés.
