1. Investment Charter Incentives
Direct subsidies and capital expenditure exemptions
The 2022 Investment Charter forms the backbone of Morocco’s investment incentive framework. It is designed to support large-scale and strategically aligned projects through negotiated agreements with the state.
Projects with an investment value generally exceeding MAD 50 million may enter into an investment agreement with the Moroccan government. These agreements provide access to direct public subsidies linked to job creation, sectoral priorities and regional development objectives.
Total support may reach up to 30% of eligible capital expenditure, depending on the combination of applicable premiums. The main incentive components include:
- Job creation premiums, typically ranging from 5% to 10% of eligible CAPEX, depending on the number and quality of jobs created relative to investment size.
- Gender parity premium, generally set at 3%, where projects meet defined targets for stable employment with a minimum gender representation threshold.
- Future-oriented activities premium, typically 3%, for projects with strong technological content or growth potential, such as Industry 4.0, renewable energy or green hydrogen.
In addition to cash subsidies, qualifying projects benefit from exemptions from VAT, customs duties and import taxes on capital goods, equipment and tools required for implementation. These exemptions generally apply for a period of up to 36 months.
This framework prioritises contractual, high-intensity support for projects that align with Morocco’s strategic and employment objectives, rather than automatic tax relief.
2. Corporate Income Tax Reform and Targeted Zones
Corporate tax convergence
Morocco is in the process of reforming its corporate income tax system, moving towards a more unified rate structure. For most companies, the standard corporate tax rate is converging towards 20% by 2026. Companies with net taxable profits exceeding MAD 100 million are subject to a higher rate, converging towards 35%, subject to specific exceptions.
A temporary investment incentive applicable between 2023 and 2026 allows companies that invest at least MAD 1.5 million in fixed assets over a five-year period to benefit from a corporate tax rate capped at 20% during the initial fiscal years of activity.
Special economic and financial zones
Significant incentives remain available in designated zones, including Industrial Acceleration Zones and Casablanca Finance City.
Industrial companies operating in these zones typically benefit from a full exemption from corporate income tax for the first five consecutive fiscal years following the start of operations. In addition, withholding tax on dividends and similar income is being gradually reduced, with a target rate of 10% by 2026.
Overall, Morocco’s tax incentives are highly targeted, focusing on specific locations, sectors and investment profiles rather than offering a general R&D tax credit regime.
3. Innov Invest Fund and the Venture Capital Ecosystem
The Innov Invest Fund is the central public initiative supporting Morocco’s start-up and innovation financing ecosystem. It is managed by TAMWILCOM and operates through a range of complementary financial instruments.
Support mechanisms include:
- Pre-seed grants, typically around MAD 100,000 per project leader, delivered through accredited incubators and accelerators to support feasibility studies and early innovation.
- Soft loans, designed to finance the commercialisation of innovative products and services.
- Equity and quasi-equity investments, channelled indirectly through public-private venture capital funds and partnerships with private fund managers.
In 2025, a new large-scale initiative was launched involving the Ministry of Digital Transition, the Mohammed VI Investment Fund, CDG and TAMWILCOM. This programme, with a total envelope of approximately USD 269 million, aims to strengthen start-up investment funds from pre-seed to Series A. TAMWILCOM plays a dual role by providing risk coverage for early losses and deploying capital through a fund-of-funds structure targeting selected management companies.
This approach is intended to de-risk private investment and deepen Morocco’s early-stage venture capital market.
4. Direct R&D and Innovation Grants
Morocco also offers direct grant funding to support scientific research and industrial innovation, often through public-private collaboration.
The Industrial Innovation Support Fund, administered by the Ministry of Industry and Trade, provides financial assistance for R&D and innovation projects led by SMEs, start-ups and large industrial players. Support is typically structured across three phases:
- Patent valorisation, with funding of up to MAD 1 million, covering up to 80% of eligible costs.
- Industrial R&D and innovation projects, with funding of up to MAD 4 million, covering up to 60% of eligible costs.
- Pilot-phase industrialisation, with funding of up to MAD 5 million, covering up to 30% of eligible costs.
In addition, the National Programme to Attract and Retain Researchers (PNARDI) is a MAD 1 billion initiative running from 2025 to 2028. Co-funded by the Moroccan government and the OCP Group, the programme aims to support young researchers and promote technology transfer in strategic sectors such as water management, healthcare and renewable energy.
Conclusion
Morocco’s innovation funding framework is characterised by a dual approach. For large and strategic investments, the Investment Charter provides high-intensity, contractual subsidies and tax exemptions tied to job creation and national priorities. For start-ups and innovative SMEs, the Innov Invest Fund and associated venture capital initiatives offer a structured continuum of grants, soft loans and equity financing.
Although Morocco does not operate a broad R&D tax credit regime, its combination of direct financial support, targeted tax incentives and growing venture capital infrastructure makes it an increasingly attractive destination for innovation-driven investment in the region.
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