Tanger Automotive City (TAC) — Africa's Largest Automotive Hub
5-Year IS Exemption · 20% IS After · 0% Customs Duties · Investment Subsidies
Tanger Automotive City (TAC) is Africa's largest automotive industrial zone. Home to the Renault-Nissan plant producing 400,000 vehicles/year and 90+ suppliers, TAC offers exceptional tax benefits: full IS exemption for 5 years then 20%, customs duty exemption, suspended VAT, free currency exchange and capital repatriation for foreign investors.
TAC: Africa's Automotive Powerhouse
Tanger Automotive City spans 2,167 hectares and represents Morocco's flagship industrial achievement in automotive. With 90+ companies, 45,000 direct jobs, and 1.4 billion USD in cumulative investments, TAC is the most dynamic automotive ecosystem on the African continent, hosting global leaders like Renault-Nissan, Yazaki, Sumitomo, Faurecia, and Valeo.
2,167 ha
Area
90+
Companies
45,000+
Jobs
400K vehicles
Production/yr
Corporate Tax (IS) Exemption
TAC's tax regime offers ultra-competitive conditions for automotive manufacturers:
Phase 1: Full Exemption (5 years)
During the first 5 years, your company is fully exempt from Corporate Tax (IS = 0%). All profits are reinvestable without tax deduction.
Phase 2: Common Law Rate (20%)
After exemption, the 20% common law rate applies for profits below 100 million dirhams. Very competitive compared to the former 31% normal rate.
Minimum Contribution
Set at 0.25% of turnover during exemption, then 0.50% after. A symbolic amount preserving your cash flow.
VAT and Customs Duties
TAC benefits from a particularly advantageous customs regime for automotive suppliers:
Import VAT: Suspended
VAT on imported equipment and raw materials is suspended, avoiding any cash advance. A considerable advantage for capital-intensive projects.
Customs Duties: 0%
Total exemption from customs duties on industrial equipment, raw materials, and semi-finished products intended for automotive production.
Export VAT: 0%
Exports of vehicles and components are fully VAT-exempt, strengthening the price competitiveness of TAC-made products on global markets.
Investment Subsidies and Sectoral Support
The Moroccan automotive sector benefits from exceptional public support through the Industrial Acceleration Plan:
Hassan II Fund
Subsidies covering up to 20% of investment in land and buildings for strategic automotive projects.
Subsidized Training
State-covered training costs through IFMIA (Automotive Industry Training Institute) and specialized sector centers.
Integrated Infrastructure
Serviced land with all connections, heavy roadways, secured power grid, treatment plants, and fiber optics included.
Currency Freedom and Capital Repatriation
For foreign investors in the automotive sector, TAC guarantees total financial freedom:
- Total freedom to transfer profits and dividends abroad without any restrictions or Exchange Office authorization
- Free repatriation of invested capital and capital gains at any time, including upon business sale
- Foreign currency accounts to manage import/export flows without exchange constraints
- Investment protection guaranteed by bilateral investment protection agreements (70+ countries)
- Non-discrimination guarantee between Moroccan and foreign investors enshrined in the Investment Charter
Business Sectors
How to Set Up in TAC?
Feasibility Study
Analysis of your industrial project, positioning in the automotive value chain, and tax benefit assessment. Our firm supports you from this phase.
Admission File
Application to Tanger Automotive City: detailed business plan, investment commitment (min 10M MAD), job forecast (min 50 positions). Timeline: 4-8 weeks.
Company Registration
Formation of your Moroccan entity in 5-10 days with bank account opening and tax registration. We handle all formalities.
Industrial Setup
Production site development, team recruitment and training, equipment installation. Your accounting is operational from day one with all tax benefits active.
FAQ — Tanger Automotive City
What is the minimum investment required to join TAC?
The minimum investment is 10 million dirhams (about 1 million USD) with a commitment to create at least 50 direct jobs. These thresholds are adapted for Tier 2 and 3 suppliers seeking to integrate the automotive supply chain.
Can I supply the local market from TAC?
Yes, unlike TFZ, TAC imposes no minimum export quota. You can supply both the Moroccan local market and export freely. This is a major advantage for suppliers.
What are the benefits for a foreign supplier?
Beyond tax benefits (0% IS for 5 years, 20% after), you benefit from a complete ecosystem: proximity to manufacturers (Renault, Stellantis), trained and productive workforce, world-class infrastructure, and strategic location 14 km from Europe via Tanger Med Port.
How does profit repatriation work?
Repatriation is completely free and unrestricted. Simply submit a transfer order to your bank with accounting documents (certified financial statements). Morocco guarantees transfer freedom under investment protection agreements.
Ready to Join Africa's Largest Automotive Ecosystem?
Our chartered accounting firm supports you from feasibility study to ongoing tax optimization. Benefit from our expertise in Tangier industrial zones.