EU Removes Morocco from Tax Haven Gray List, Boosting Investment Prospects

The European Union’s decision to remove Morocco from the gray list of tax havens will undoubtedly reassure foreign investors, whether financial or industrial, and help forge major partnerships between Moroccan and European economic operators.

This decision is in line with the tax reforms undertaken by Morocco since 2018 to promote good tax governance, in accordance with EU conditions and international standards. Among other measures, we can cite the modification of the tax regime of Casablanca Finance City, which now complies with the principles of fair tax competition, and the adoption in the 2021 Finance Act, of two tax regimes relating to free zones and export companies.

Morocco’s tax reforms have also been praised by the World Bank, which has included the kingdom in the Top 50 of its Doing Business ranking. Now "Green Lighted", Morocco intends to be an economic partner respectful of international commitments towards its European partners. This virtuous stance will "encourage more competitiveness, including procedural, administrative, etc.," explains economist Ahmed Azirar, director of studies at the Moroccan Institute of Strategic Intelligence, who welcomes the EU’s decision.

The Seychelles and eleven other Caribbean island countries considered tax havens remain on the EU’s blacklist, with whom they even refuse "to engage in dialogue or remedy shortcomings in terms of good tax governance".