Industrial Acceleration Zones (IAZs), formerly known as export free zones, are clearly defined areas within the Moroccan customs territory where a favorable tax, customs, and foreign exchange regime applies.
They offer significant tax incentives: reduced corporate income tax, exemptions from VAT, customs duties, and business tax, as well as administrative facilitation.
In addition, these zones provide strategic access to international markets and a qualified workforce.
Tax Benefits of Free Zones in Morocco
Industrial Acceleration Zones (IAZs) offer a particularly competitive range of advantages.
These benefits mainly relate to taxation, customs duties, VAT, business tax, and other administrative facilities.
Corporate Income Tax (CIT)
During the first five years of operation, companies established in an IAZ are fully exempt from corporate income tax (CIT).
After this five-year exemption period, they are subject to a reduced CIT rate of 15%.
This rate has been in effect since the Finance Law of January 1, 2020, replacing the former reduced rate of 8.75%.
Business Tax
Companies benefit from an exemption from business tax for a period of fifteen years.
This exemption applies to real estate and equipment installed within these zones.
Value Added Tax (VAT)
Supplies of goods and services to IAZs, including transactions between different Industrial Acceleration Zones, are exempt from VAT, while maintaining the right to deduct input VAT.
This exemption requires the filing of a formal VAT declaration.
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Customs Duties and Import Taxes
Companies operating in IAZs are exempt from customs duties and import taxes. They also benefit from simplified procedures and extensive freedom for foreign currency transfers, including exemption from the regulations of the Exchange Office.
This facilitates the free movement of capital internationally. The objective is to support investors in quickly accessing a qualified workforce while reducing logistics and foreign trade costs.
Withholding Tax on Dividends
Dividends paid to non-residents are exempt from withholding tax.
For resident shareholders, the flat withholding tax provided by tax legislation applies (between 15% and 20%, depending on the year).
Registration Duties, Stamp Duties, and Other Local Taxes
Additional benefits include exemptions from registration and stamp duties on incorporation deeds, capital increases, and acquisitions of land intended for investment purposes (provided the property is retained for at least ten years), as well as, depending on the case, certain local taxes.
With recognized expertise in supporting companies operating in free zones, our accounting firm is at your disposal to assist you at every stage of your establishment in an IAZ.
We offer comprehensive support: feasibility studies, tax, social, legal, and financial advice, compliant accounting management, and audit services.
Our priority is to secure your investment, ensure full compliance, and optimize all benefits associated with the Industrial Acceleration Zone regime in Morocco.
Establishment Procedure and Support in Free Zones / IAZ
Setting up in an Industrial Acceleration Zone (IAZ) follows these steps:
- Submission of the authorization application to the zone’s managing authority
- Review of the application by a local committee chaired by the wali or governor
- Granting of authorization, allowing the start of works and the signing of a lease or purchase agreement
- Application for an operating license before commencing activity
Each stage requires careful attention and strong command of administrative and regulatory procedures.
To facilitate and secure your project, our firm provides tailored support at every step, from file preparation to the launch of your operations.
Main Free Zones / IAZs in Morocco
Morocco currently has around a dozen Industrial Acceleration Zones (IAZs) spread across the country.
Among the most well-known are:
Tangier Free Zones
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Tanger Free Zone (TFZ): Multi-sector industrial zone mainly hosting export-oriented industries
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Tanger Automotive City (TAC): Specialized in the automotive industry and subcontracting
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Mohammed VI Tangier Tech City (SATT): Dedicated to services (BPO, IT, call centers, tertiary activities)
Dakhla Free Zone
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Dakhla Atlantic: Aimed at economic development in the southern regions, particularly fisheries, agri-industry, and port logistics
Casablanca Free Zone
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Midparc Casablanca (Nouaceur): Specialized in aerospace and high-technology industries
Kenitra Free Zone
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Atlantic Free Zone (AFZ): Focused on the automotive sector (PSA Stellantis plant and its subcontractor ecosystem)
Agadir Free Zone
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Agadir Haliopolis: Dedicated to agri-industry and seafood processing
Who Can Set Up in a Free Zone / IAZ?
Any individual or legal entity, Moroccan or foreign, may establish operations in an IAZ. Authorized activities must be export-oriented and mainly include industry, international trade, and services.
Certain conditions apply, particularly for companies created by local investors. Foreign exchange regulations impose specific rules, especially regarding profits paid to non-residents.
Is It Possible to Sell on the Local Market?
Initially, companies operating in IAZs were required to export 100% of their production.
However, since 2018, they are allowed to sell up to 15% of the previous year’s export turnover on the local market.
This remains strictly regulated and limited to specific goods, semi-processed products, and services.
