Updated: 2026 — By Adil Charradi, Chartered Accountant — DECIMAL, Casablanca
Morocco has established itself as one of the world’s leading offshoring destinations, attracting multinational corporations and international SMEs each year in search of competitive outsourcing solutions. With a skilled, multilingual workforce, modern infrastructure, a strategic geographic position at the gateway to Europe, and a particularly attractive tax framework, the Kingdom offers a unique environment for service outsourcing activities.
In 2024, the Moroccan government took a major step forward with the launch of the Digital Morocco 2030 strategy and the signing of an ambitious contract-programme: 130,000 additional direct jobs and MAD 40 billion in sector revenue by 2030.
This comprehensive guide covers everything you need to know about offshoring in Morocco in 2026: definition, eligible sectors, tax benefits, host platforms, and the steps to incorporate your outsourcing company.
Table of Contents
- What Is Offshoring in Morocco?
- Why Choose Morocco for Offshoring?
- The 5 Offshoring Sectors in Morocco
- Tax Benefits of Offshoring in Morocco in 2026
- The New Morocco Offshoring Offer — Digital Morocco 2030
- Integrated Industrial Platforms (P2I Offshoring)
- How to Set Up an Offshoring Company in Morocco
- Offshoring in Morocco for Foreign Companies
- FAQ — Your Questions About Offshoring in Morocco
Table of Contents
- What Is Offshoring in Morocco?
- Why Choose Morocco for Offshoring?
- The 5 Offshoring Sectors in Morocco
- Tax Benefits of Offshoring in Morocco in 2026
- The New Morocco Offshoring Offer — Digital Morocco 2030
- Integrated Industrial Platforms (P2I Offshoring)
- How to Set Up an Offshoring Company in Morocco
- Offshoring in Morocco for Foreign Companies
- FAQ — Your Questions About Offshoring in Morocco
1. What Is Offshoring in Morocco?
Offshoring — or service outsourcing — refers to a company delegating certain activities or functions to a service provider located in another country, with the aim of optimising costs, accessing specialist skills, and focusing on its core business.
In Morocco, service offshoring is defined and governed by DGI Circular 5/2016, subsequently updated by the new circular published in November 2025 as part of the Digital Morocco 2030 strategy. These texts precisely define the eligible sectors and the conditions for obtaining tax benefits.
Moroccan offshoring is distinct from simple relocation: it is a genuine activity, carried out by a company effectively established in Morocco, with local employees, delivering services primarily destined for export.
2. Why Choose Morocco for Offshoring?
A Unique Geographic Position
Located just 14 km from Europe across the Strait of Gibraltar, Morocco benefits from a time zone aligned with Western Europe (GMT+1), which greatly facilitates real-time collaboration with European clients.
A Skilled, Multilingual Workforce
Morocco has a talent pool trained at leading engineering schools, business schools and recognised universities. Professionals typically master:
- French (the dominant working language in the sector)
- English (increasingly present in IT and KPO roles)
- Spanish and Arabic (additional assets for certain markets)
Competitive Costs
Labour costs in Morocco are significantly lower than in Western Europe, while remaining associated with high qualification levels. This competitive advantage is one of the main drivers of the Kingdom’s attractiveness for outsourcing projects.
A Stable, Open Regulatory Framework
Moroccan law allows foreign investors to hold 100% of the share capital of an offshoring company, with no requirement for a local partner. Repatriation of profits in foreign currency is guaranteed, subject to declaration to the Office des Changes (Exchange Control Office).
World-Class Companies Already Established
Major multinationals have already chosen Morocco as their offshoring hub: Capgemini, CGI, BNP Paribas, AXA, IBM, Accenture, Dell, Amazon, Ubisoft, Atos… Their presence attests to the maturity of the ecosystem and continues to attract new players.
3. The 5 Offshoring Sectors in Morocco
In accordance with the DGI circular, offshoring activities eligible for tax benefits are grouped into five major sectors:
CRM — Customer Relationship Management
The CRM sector covers all services related to managing interactions between a company and its customers. It is historically the most developed sector in Morocco.
Main activities:
- Inbound calls: switchboard, overflow management, information, technical support and helpdesk
- Order taking, complaint handling, SIM card unblocking
- Outbound calls: telemarketing, appointment setting, market research, collections
- Telesales B2C and B2B
- Digital support and community management
BPO — Business Process Outsourcing
BPO covers the outsourcing of cross-functional, high operational value functions.
Main activities:
- Banking: account management, payment processing, credit file management, collections
- Insurance: contract management, claims handling, debt recovery
- Accounting & Finance: accounting processing, reporting, financial statements preparation, treasury, tax management
- Human Resources: recruitment, payroll management, personnel administration, training
- Healthcare: medical transcription, medical secretarial services, patient database management
- Sourcing & Procurement: supply chain, supplier account management
- General services: data entry, document indexing and encoding
ITO — Information Technology Outsourcing
ITO is the fastest-growing sector, driven by the digital transformation of global companies.
Main activities:
- Infrastructure and network management (LAN/WAN, IT equipment)
- Software, web and mobile application development
- Application testing and integration
- Preventive, corrective and evolutionary maintenance
- Software technical support and helpdesk
- IT consulting (strategy, information systems assessment)
- Cybersecurity and IT risk management
ESO — Engineering Service Outsourcing
ESO encompasses high-technicality services in engineering and R&D.
Main activities:
- Computer-aided design (2D/3D modelling, simulation, prototyping)
- Basic and detailed engineering support
- Technical documentation writing
- Numerical simulation and embedded software development
- 3D printing and additive manufacturing
- Research and development (clinical, pharmaceutical and industrial R&D)
- Civil engineering: tender documents, static and dynamic calculations
KPO — Knowledge Process Outsourcing
KPO represents the premium segment of offshoring, focused on high intellectual value activities.
Main activities:
- Market Research: market data collection, economic intelligence, sector analysis
- Data Analytics: financial modelling, risk modelling, statistical and profitability analysis
- Specialised Publishing: specialised content creation, document editing, translation
- Legal Process Outsourcing (LPO): legal research, contract drafting and review
4. Tax Benefits of Offshoring in Morocco in 2026
Morocco’s dedicated offshoring tax regime is one of the most competitive in the region. It is set out in Article 6 of the General Tax Code (CGI) and clarified by DGI circulars.
Corporate Tax (IS) — Exemption Then Standard Rate
Offshoring companies benefit from two phases:
| Phase | Duration | IS Regime |
|---|---|---|
| Phase 1 | First 5 years of activity | Full IS exemption |
| Phase 2 | Beyond 5 years | Standard rate: 20% |
⚠️ Key 2026 update: The former reduced rate of 15% applicable after the exemption period has been abolished by the 2023-2026 tax reform. As of 2026, all companies — including offshoring firms — are subject to the standard rate of 20% at the end of their five-year exemption. Factor this into your business plan.
Conditions to benefit from the IS exemption:
- The company must carry out activities within the 5 offshoring sectors defined by the circular
- The activity must be genuine and effective: the company must be actually established in Morocco and employ staff
- Revenue must be primarily generated through export of services
This exemption applies to companies located both inside and outside P2I Offshoring platforms.
VAT — Exemption with Right to Deduct
Offshoring companies benefit from a VAT exemption with right to deduction on their export turnover:
- No VAT invoiced to foreign clients
- Recovery of VAT paid on local purchases (rent, equipment, operating costs)
- VAT credit refund and the possibility of purchasing under a suspension regime for initial investments
This represents a significant cash flow advantage, particularly during the investment phase.
Income Tax (IR) — Capped Employee Tax Liability
Under the new Morocco Offshoring Offer (2025 circular), employees’ IR tax liability is capped:
| Location | IR Cap |
|---|---|
| Main P2I (Casablanca, Rabat, Tangier, Marrakech) | 20% of gross income |
| Secondary P2I (Fès Shore, Oujda Shore, Tétouan Shore…) | 10% of gross income |
This cap is a powerful competitive advantage for attracting and retaining talent.
Withholding Tax on Dividends
Dividends distributed by an offshoring company to its shareholders (Moroccan or foreign) are subject to withholding tax, the rate of which has been progressively reduced:
- 10% from 2026 (effective reduced rate, after progressive convergence since 2023)
This reduction strengthens Morocco’s attractiveness for foreign investors wishing to repatriate their profits.
Additional Benefits
- Customs duty exemption on equipment imported by companies in ZAI/P2I zones
- Contribution to training costs for new hires and ongoing training for P2I-based companies
- One-stop shop for administrative formalities
5. The New Morocco Offshoring Offer — Digital Morocco 2030
In September 2024, Morocco launched the Digital Morocco 2030 strategy and signed a contract-programme for the offshoring sector. A circular operationalising this framework was published in November 2025, with retroactive effect from 1 July 2025.
Strategic Targets
- 130,000 additional direct stable jobs by 2030
- 50,000 jobs created as early as 2026
- MAD 40 billion in sector revenue by 2030 (MAD 25 billion by 2026)
State-Supported IS
The major innovation of this new offer: the State covers 56% of the IS rate for eligible offshoring companies. In practice, a company subject to a 20% IS will effectively bear only 8.8% (44% × 20%).
Employment Subsidy
A subsidy of 17% of annual gross taxable income is granted for each new stable job created, subject to conditions:
- Recruitment of an employee of Moroccan nationality
- Fixed-term or permanent contract of at least 18 consecutive months at full time
Application Processing Times
The circular sets precise deadlines for installation applications:
- 5 business days for standard files
- 25 business days when the opinion of the Technical Offshoring Committee (CTO) is required
6. Integrated Industrial Platforms (P2I Offshoring)
P2I Offshoring platforms are purpose-built, fully equipped zones designed to host outsourcing service companies. They provide a turnkey environment: flexible office space, fibre optic networks, shared services, and a one-stop administrative window.
Main P2I
| Platform | City | Key Features |
|---|---|---|
| Casablanca Shore | Casablanca | Main hub, financial hub (CFC) |
| Rabat Technopolis | Rabat | Proximity to institutions, IT focus |
| Tanger Shore | Tangier | Logistics, access to Tanger Med port |
| Marrakech Shore | Marrakech | Business tourism, multilingual |
Secondary P2I
| Platform | City |
|---|---|
| Fès Shore | Fès |
| Oujda Shore | Oujda |
| Tétouan Shore | Tétouan |
Secondary P2I benefit from an even more advantageous IR cap (10% of gross income), to encourage regional development and decentralisation of offshoring jobs.
💡 Good to know: the IS tax benefits (5-year exemption) apply to companies located both inside and outside P2I. You are not required to install in a P2I to benefit from the IS exemption. However, the capped IR and the employment subsidy are conditional on a P2I installation.
7. How to Set Up an Offshoring Company in Morocco
Setting up an offshoring company in Morocco follows the standard company incorporation process (LLC, SA or SAS), with a few sector-specific steps.
Step 1 — Choose the Legal Structure
The LLC (SARL) is the most suitable structure for starting an offshoring activity, particularly for SMEs and subsidiaries of foreign groups. For more capitalised structures or those aiming for investment partnerships, the SAS or SA may be considered.
Step 2 — Define the Sector and Activity
The company’s corporate purpose must clearly reflect the offshoring activities to be carried out, using the terminology of the 5 recognised sectors (CRM, BPO, ITO, ESO, KPO). Precise drafting of the corporate purpose is essential to justify eligibility for the specific tax regime.
Step 3 — Choose the Location
Two options:
- P2I installation: benefit from the full package (IS + IR cap + employment subsidy + training support). Requires an installation application to the relevant P2I operator.
- Off-P2I installation: benefit from the 5-year IS exemption and VAT exemption, but not the IR cap or employment subsidy.
Step 4 — Submit the Installation Application (P2I)
If opting for a P2I, an installation file must be submitted to the platform operator. It is processed within 5 to 25 business days depending on project complexity.
Step 5 — Incorporate the Company and Register
Negative certificate, articles of association, CRI filing, registration, tax and social security registrations — the same steps as for any company formation in Morocco. DECIMAL handles the full process.
Step 6 — Recruit and Launch Operations
The IS exemption begins from the effective start of activity. It is therefore important to hire and start invoicing services promptly, so that the 5-year exemption period begins under the best conditions.
8. Offshoring in Morocco for Foreign Companies
Subsidiary or Branch Office?
Foreign companies wishing to establish an offshoring presence in Morocco have two options:
- Moroccan subsidiary (LLC/SA/SAS): independent legal entity, benefits from all tax advantages, liability separated from the parent company. Recommended in the majority of cases.
- Branch office: no separate legal personality, parent company bears full liability, faster to set up but less flexible fiscally.
Repatriation of Profits
Repatriation of dividends abroad is free and guaranteed, provided that:
- The initial investment has been declared to the Office des Changes
- It was made in convertible foreign currency
Withholding tax on dividends is 10% from 2026, and may be further reduced by bilateral tax treaties between Morocco and the shareholder’s country of residence.
Bilateral Tax Treaties
Morocco has concluded tax treaties with many countries (France, Belgium, Spain, Canada, UAE, etc.) which can further reduce withholding tax on dividends, interest and royalties. Always check the treaty applicable to your situation.
9. FAQ — Your Questions About Offshoring in Morocco
What is an offshoring company in Morocco?
An offshoring company in Morocco is a company genuinely established on Moroccan territory, employing local staff, and providing outsourced services to foreign clients within one of the 5 recognised sectors (CRM, BPO, ITO, ESO, KPO).
How long is the IS exemption for offshoring?
The full Corporate Tax exemption runs for 5 years from the effective start of operations. Beyond that, the standard rate of 20% applies.
Must a company be in a P2I to benefit from the IS exemption?
No. The 5-year IS exemption applies to offshoring companies whether located inside or outside P2I. However, the capped employee IR and the employment subsidy are reserved for P2I-based companies.
Can a foreigner set up an offshoring company in Morocco?
Yes. Moroccan law allows foreigners to hold 100% of the share capital of an offshoring company without a local partner. Morocco is specifically designed to host subsidiaries of international groups.
Which sectors are most promising for offshoring in Morocco?
IT (software development, cybersecurity, cloud), financial and accounting BPO, KPO (data analytics, quantitative finance) and multi-function shared service centres are the fastest-growing segments and are most in demand from international clients.
Is Morocco competitive against India or the Philippines?
Morocco does not seek to compete with India or the Philippines on volume. Its value proposition is different: proximity to Europe (same time zone), French language proficiency (rare in India/Philippines), quality profiles (engineers, lawyers, finance professionals), regulatory stability and low turnover compared to certain Asian countries. For French-speaking European clients, Morocco is often unbeatable.
What is the Digital Morocco 2030 strategy?
It is the national strategy launched in September 2024 to make Morocco a regional hub for the digital economy and offshoring. It sets ambitious targets: 130,000 direct jobs and MAD 40 billion in sector revenue by 2030. A new circular published in November 2025 details the incentives: State coverage of 56% of IS, employment subsidy of 17%, and IR cap in P2I zones.
Can I set up an offshoring company in Morocco from France?
Yes. As with any company formation in Morocco, almost all formalities can be handled remotely via a notarised power of attorney that has been legalised/apostilled. DECIMAL accompanies non-resident entrepreneurs through every step, from drafting the articles of association to registration.
How long does it take to set up an offshoring company in Morocco?
The company incorporation itself takes 2 to 4 weeks for a complete file. If you opt for a P2I installation, add the application processing time (5 to 25 business days depending on the case).
Does VAT apply to offshoring services in Morocco?
No. Offshoring services destined for export are VAT-exempt with the right to deduct. The company does not invoice VAT to its foreign clients and can recover VAT paid on local purchases.
Conclusion: Morocco, the Reference Destination for Offshoring
Morocco combines unique advantages for companies seeking to outsource all or part of their activities: an attractive tax regime (5-year IS exemption, VAT, capped IR), a skilled and multilingual workforce, dedicated infrastructure (P2I), and a national strategic framework backed by Digital Morocco 2030.
Whether you are a multinational looking to establish a shared service centre, a European SME seeking to outsource its accounting or IT functions, or a Moroccan entrepreneur looking to create an export-oriented services company, Morocco today offers one of the best offshoring ecosystems in the region.
As a chartered accountant based in Casablanca, DECIMAL assists local and international companies with their offshoring projects:
- ✅ Advice on the choice of legal structure and location (P2I or off-P2I)
- ✅ Company formation and registration
- ✅ Tax regime optimisation (IS, VAT, IR, bilateral tax treaties)
- ✅ Tax and social security filings
- ✅ Support for non-resident directors
- ✅ Assistance during tax audits
Do you have an offshoring project in Morocco? Contact DECIMAL for an initial no-obligation discussion.
Article by Adil Charradi, Chartered Accountant — DECIMAL — Casablanca, Morocco
Last updated: 2026
