DECLARATION BY MRES IN THE EVENT OF A CHANGE OF TAX RESIDENCE TO MOROCCO
Declarations, facilities and procedures
Moroccans living abroad (MREs) who choose to transfer their tax residence to Morocco are required to declare to the Foreign Exchange Office, within one year of the date of such transfer, all their assets and cash holdings abroad* (Law 63-14):
- Immovable property held abroad, in whatever form;
- Financial assets, transferable securities and other equity and debt securities held abroad;
- Liquid assets held in accounts opened with financial institutions, credit institutions or banks located abroad;
- Intellectual, cultural and artistic property of significant monetary value, and highly profitable patents, held and registered abroad.
* Law No. 63-14 on assets and cash held abroad by Moroccans living abroad who transfer their tax residence to Morocco.
Facilities
Declaring assets and cash held abroad entitles you to certain benefits and facilities. In particular, it allows: Moroccans living abroad (MREs):
- To hold the declared foreign-currency cash in accounts held or to be opened abroad, or to repatriate it and place it in foreign-currency or convertible dirham accounts in Morocco;
- To carry out any disposal (transfer, reinvestment, etc.) of the declared assets and cash without referring the matter to the Foreign Exchange Office.
Further foreign exchange facilities for Moroccans living abroad are set out in Circular** 1/2022.
** Circular 1/2022 concerning foreign exchange facilities for Moroccans who have declared their assets and liquid funds held abroad in accordance with the provisions of Law 63-14 and the regulations adopted for its implementation.
Procedures
Moroccans living abroad who transfer their tax residence to Morocco must submit a declaration*** (see Declaration Form) to the Foreign Exchange Office by any means, either in person or through an authorised representative. Other methods of filing are also available at all branches of the Kingdom’s banking network and via the Foreign Exchange Office’s online filing platform (see this link).
*** Order No. 3005-15 of 23 September 2015, issued by the Minister for the Economy and Finance.
The declaration must be accompanied by the following documents:
- Proof of previous residence abroad: a certificate of removal from the registers of Moroccan consulates, missions or diplomatic representations abroad; or a certificate of residence abroad; or any other document proving previous residence abroad;
- Evidence of employment during the period of stay abroad: tax returns, an employment contract, payslips or any other document proving the duration of employment abroad and the income received in that capacity;
- Proof of the value of immovable property: a certificate confirming the acquisition of the immovable property and its value, or its acquisition by inheritance or gift prior to the date of transfer of tax residence to Morocco, issued by a person or entity legally authorised to do so;
- Evidence of the value of financial assets: any document proving the date on which these assets were held and their subscription or purchase value prior to the date of transfer of tax residence to Morocco;
- Proof of liquid assets: the bank statement for the last month prior to the date of transfer of tax residence to Morocco, as well as the statement for the month prior to the date of the declaration;
- Evidence of the value of intellectual, cultural and artistic property: any legal document proving the date of acquisition and the value of such property prior to the date of transfer of tax residence to Morocco.
Taxpayers whose assets and cash held abroad prior to transferring their tax residence to Morocco have realised a capital gain must provide the following supporting documents:
- Contracts for the sale and purchase of immovable property;
- Statements of financial assets or supporting documents relating to the sale and purchase of such assets;
- Supporting documents relating to the increase in cash holdings equivalent to the interest.
