2026 Marrakech buy-to-let barometer: financing, tax, yields

Data: Bank Al-Maghrib, 2026 Finance Act, Ministry of Tourism, ONDA, and model scenarios from the Armonia Solutions calculators, July 2026.

Key takeaways

• A 1,000,000 DH mortgage over 20 years at 5% costs about 6,600 DH per month, including 583,900 DH of cumulative interest (declining interest).
• Long-term rental income enjoys a 40% allowance before tax: 120,000 DH of annual rent generates ≈ 4,400 DH of income tax, a 3.7% effective rate.
• Acquisition costs represent about 7% of the price (registration 4%, land registry 1.5%, notary ≈ 1%).
• With 19.8 million tourists in 2025 (+14%), short-term rental in Marrakech supports gross yields above long-term letting.

The real cost of a mortgage in 2026

The table below shows the amortization of a typical 1,000,000 DH loan over 20 years at an indicative 5% rate: the monthly payment stays at 6,600 DH, but the interest share, computed on the outstanding balance, shrinks every year.

Total cost of credit: 1,583,894 DH, i.e. 58% of interest on top of the borrowed capital. Each negotiated rate point is worth roughly 130,000 DH over the full term.

Rental taxation: what you really pay

For long-term rental, the standard regime applies a 40% allowance on gross rents, then the progressive income-tax scale (0% up to a 40,000 DH base, 10% to 60,000, 20% to 80,000, 30% to 100,000, 34% to 180,000, 37% beyond). Computed examples:

Depending on the landlord profile, a 10% or 15% final withholding can replace the scale: worth validating with an advisor.

Acquisition costs: budget ≈ 7%

For a 1,500,000 DH property: registration duty 60,000 DH (4%), land registry ≈ 22,700 DH (1.5% + fee), notary ≈ 18,000 DH (1% + VAT), sundry ≈ 1,500 DH, close to 102,000 DH in total (6.8% of the price), to build into the financing plan.

Typical yields from our simulations

Reference scenario: an apartment at 1,500,000 DH (costs included) let at 8,000 DH/month long-term → 6.4% gross yield, ≈ 5.6% net after running costs. In short-term rental, a property at €90 per night with 65% occupancy generates ≈ €21,350 gross per year, ≈ €17,100 net after operating costs (~25%), taxation and seasonality remain the decisive variables. The backdrop is supportive: 19.8 million tourist arrivals in Morocco in 2025 (+14%) and over 10.2 million passengers at Marrakech-Menara (ONDA).

Financing as a non-resident: what banks actually ask

Moroccan banks do lend to non-residents, under conditions that are stricter than for residents but perfectly workable when anticipated. Expect a down payment of 30-50% depending on profile and bank, a maximum term of 20-25 years capped by retirement age, and a documented debt-to-income ratio usually kept under 40-45%. The file itself is classic: passport, proof of income (three to six months of payslips or accounts for the self-employed), tax returns, bank statements, and the property’s preliminary sale agreement. Funds transferred from abroad should pass through a convertible dirham account, this is what later guarantees your right to repatriate sale proceeds and rental income.

Practical note for buyers earning in euros, pounds or dollars: your loan will be in dirhams, so the exchange rate at each transfer becomes part of your real cost. A rate move of a few percent over a 20-year horizon dwarfs most negotiation wins, keep some flexibility on when you convert.

Negotiating your rate: what a point is worth

Our amortization table makes the stake concrete: on 1,000,000 DH over 20 years, moving from 5% to 4% cuts the monthly payment from ≈ 6,600 to ≈ 6,060 DH and saves ≈ 130,000 DH of interest over the term. Three levers consistently work: a larger down payment (the 50% file gets a different grid than the 30% one), domiciliating income or opening the bank relationship before you ask, and putting banks in competition through a broker, Moroccan banks price relationship risk, and a complete, well-presented file is rewarded.

A worked cashflow: putting the three tables together

Combine the barometer’s numbers on the reference apartment at 1,500,000 DH with 50% financed: down payment 750,000 DH + ≈ 102,000 DH of acquisition costs ≈ 852,000 DH of initial outlay. The 750,000 DH loan at 5% over 20 years costs ≈ 4,950 DH/month. Let long-term at 8,000 DH/month, the property covers its loan payment with ≈ 3,000 DH of monthly margin before tax and charges; after the 40% allowance, tax on 96,000 DH of annual rent stays modest (≈ 1,760 DH/year at the scale). The operation is roughly self-financing, which is exactly what most non-resident buyers are looking for: an asset that pays for itself while the loan amortizes.

The buying timeline: six steps, three to five months

• 1. Offer and preliminary agreement (compromis) with a deposit, usually 10%, held by the notary.
• 2. Financing file submitted; bank agreement typically takes three to six weeks for non-residents.
• 3. Title verification by the notary at the land registry (conservation foncière), the step you never compress.
• 4. Deed signature and payment of the acquisition costs detailed above (≈ 7%).
• 5. Registration and title transfer, then utility contracts in your name.
• 6. Fiscal registration as a landlord before the first rent, resident or not.

The five mistakes we see most often

• Budgeting the price but not the ≈ 7% acquisition costs, and discovering them at the notary’s table.
• Comparing gross yields across models: short-term rental’s 25% operating envelope changes the ranking.
• Ignoring the convertible dirham account at purchase, then struggling to repatriate proceeds at resale.
• Choosing between the tax scale and the 10/15% final withholding without running both numbers for their own situation.
• Signing without the notary’s land-registry verification because “the seller is trustworthy”.

Marrakech from the UK and beyond: access, flights and daily reality

For UK-based investors, Marrakech is one of the easiest overseas markets to reach: direct flights from London, Manchester, Birmingham, Bristol and Edinburgh take around 3.5 hours, often under £120 return outside school holidays. The time difference is zero or one hour, so managing a property remotely never disrupts your day. English is widely spoken in agencies and among concierge operators, and notaries routinely handle files for foreign buyers; French remains the working language of contracts, so budget for a sworn translation if you want one.

That proximity feeds directly into returns: you can inspect before buying, check renovation work yourself, and still use the property a few weeks a year without giving up peak season. British visitors are consistently among the top three tourist nationalities in the city, which underpins short-let demand year round.

Double taxation and repatriating your rent

Under the UK–Morocco double taxation convention, rental income from Moroccan property is taxed in Morocco first, following the scale described above. UK residents must still declare it on the foreign pages of their Self Assessment return, claiming Foreign Tax Credit Relief for Moroccan tax paid so the same income is not taxed twice. Rules differ if you are non-domiciled or taxed on the remittance basis, so have a cross-border adviser confirm your position.

For repatriation, the golden rule is to buy through a convertible dirham account funded from abroad: together with the investment certificate, it guarantees the right to transfer rents and resale proceeds out of Morocco without prior exchange-office approval.

Neighbourhood by neighbourhood: positioning your purchase

The price table in this barometer becomes truly useful once crossed with your letting strategy:

• Guéliz and Hivernage: the liquid core of the market. The highest prices per m², but fast resale, solid long-term demand from executives and expats, and steady short-let performance. The prudent choice.
• The Medina: riad territory, almost exclusively short-let. Strong nightly-rate potential, but real renovation budgets and an operating licence to verify before you sign.
• Targa and Route de Casablanca: family apartments driven by local long-term demand. Regular cashflows, low seasonality.
• Route de l’Ourika and M’hamid: new-build at entry prices. Discount on purchase, upside tied to arriving shops and schools; plan a longer holding period.
• The Palmeraie: villas with pools for a premium short-let clientele. High entry ticket and demanding management, but unmatched nightly rates in high season.

Simple rule: long-term letting works on Guéliz, Targa and well-served corridors; high-performing short lets need the medina, Hivernage or the Palmeraie, with professional concierge management.

Run your own scenario in 30 seconds

Every figure in this article can be reproduced with our free calculators: mortgage payments, net yield, cash flow, acquisition costs and rental taxation, all preset to 2026 Moroccan parameters.

Checklist before making an offer

• Confirm a registered land title (titre foncier); traditional melkia deeds demand extra legal care.
• Ask for proof that property tax and co-ownership charges are paid up to date.
• For short lets, verify the operating licence or its feasibility in the building.
• Read the co-ownership rules: some prohibit nightly rentals outright.
• Inspect for damp and roof condition, especially in riads and ground floors.
• Compare the asking price against the neighbourhood median in this barometer.
• Include a financing condition clause if you need a mortgage.
• Choose your own notary rather than accepting the seller’s by default.

Furnishing to earn more

Budget 60,000–120,000 MAD to furnish a one-bedroom apartment completely. A well-designed interior lifts nightly rates by 15–25% and cuts vacancy, typically paying for itself within 18–30 months in short-let mode. Professional photography is the single cheapest conversion lever: it costs a few thousand dirhams and changes a listing’s click-through rate immediately. Keep an equipment reserve of around 5% of annual revenue for renewals.

Insurance and landlord protection

A non-occupant landlord policy (multirisque PNO) costs roughly 1,500–3,000 MAD per year and covers water damage, fire and liability. For long lets, sign a notarised lease and take one to two months’ deposit with a detailed inventory. For short lets, remember platform guarantees do not replace proper operating insurance.

Methodology: how to read this barometer

The figures in this barometer come from three cross-checked sources: a manual survey of active listings on Morocco’s main property portals, nightly rates observed on short-let platforms neighbourhood by neighbourhood, and quarterly feedback from local property managers. No figure is extrapolated from national averages.

• We publish medians rather than averages: they neutralise outliers such as luxury riads or overpriced listings.
• Seasonality matters: occupancy rates recorded in Marrakech between November and April often run 15 to 20 points above summer levels.
• Asking prices include a negotiation margin: a gap of more than 8% against the neighbourhood median is a signal to negotiate.
• Data is refreshed every quarter; the next update is scheduled for October 2026.

Use these benchmarks as a starting point with your agent or notary, and always compare a specific listing against its neighbourhood median before making an offer.

FAQ

Can foreigners own property freehold in Morocco?

Yes, full freehold ownership is open to foreigners, with the notable exception of agricultural land. Urban residential property in Marrakech carries no nationality restriction.

What loan-to-value can a non-resident realistically get?

Most files land between 50% and 70% financing. The stronger and better documented the income, the closer to 70%.

Is the 40% rental allowance automatic?

It is the standard regime for long-term residential rental income declared at the scale; the 10/15% withholding options follow their own rules. An advisor should confirm which regime your profile favours.

Should I buy in my own name or through a company?

For a single property, personal ownership is usually simpler and cheaper; corporate structures become relevant with several properties or succession planning goals. Cross-border cases deserve professional advice on both sides.

Can I buy in Marrakech without travelling?

Yes. An authenticated power of attorney (notarised and apostilled, or signed at a Moroccan consulate) lets a trusted third party sign both the preliminary and final deeds. Bank accounts can be opened remotely with several banks; plan one trip for handover and snagging.

What happens when I sell?

The property profit tax (TPI) is 20% of the net gain, with a minimum of 3% of the sale price. Invoiced renovation costs increase your acquisition base and shrink the taxable gain, so keep every document from day one.

When is the best time to negotiate?

Summer (June to September): tourist demand slows and motivated sellers become flexible. A property listed for more than 90 days, or standing empty, typically trades 5–10% below asking, more when the seller lives abroad.

Sources and disclaimer

Simulations run with the Armonia Solutions calculators (July 2026): constant-payment amortization, income-tax scale of the current Finance Act, indicative market mortgage rate. Tourism statistics: Ministry of Tourism and ONDA (2025). These figures are orders of magnitude to validate case by case, they do not constitute financial, tax or legal advice.