Marrakech Property Investment Barometer 2026: Mortgage Costs, Rental Taxes and Yields

Thinking about buying an apartment or a riad in Marrakech to rent out in 2026? This barometer gathers, in one place, the numbers that actually decide whether your project works: what a Moroccan mortgage really costs, how rental income is taxed, what you will pay in purchase fees, and the yields observed in realistic scenarios for both long-term rental and Airbnb-style short lets. All figures come from Bank Al-Maghrib data, the Moroccan 2026 Finance Law, the Ministry of Tourism, ONDA airport statistics and the Armonia Solutions calculators (July 2026).

With more than 25 years of expertise, Armonia Solutions manages rental property for international owners in Marrakech and Agadir, from long-term tenancies to full Airbnb property management in Marrakech. This barometer reflects what we see every week in the field: financing files, tax returns and real occupancy data, condensed into orders of magnitude you can use before you commit.

One caveat before the numbers: every situation is different, and nothing here is financial, tax or legal advice. Treat these figures as a compass, then validate your own case with a professional.

Key figures for rental property investment in Marrakech in 2026

What a mortgage really costs in Morocco in 2026

The reference scenario used across this barometer is a loan of 1,000,000 MAD (about $100,000) over 20 years at an indicative market rate of 5%. The monthly payment stays constant at about 6,600 MAD (about $660), but the composition of that payment changes every month: interest is calculated on the outstanding capital, so the interest share shrinks year after year while the capital share grows.

Over the full term, the total cost of the loan reaches 1,583,894 MAD (about $158,390), meaning cumulative interest adds 58% on top of the borrowed capital. That is the number to keep in mind when you negotiate: in this scenario, each percentage point of interest rate is worth roughly 130,000 MAD (about $13,000) over the life of the loan. Comparing two or three banks, or negotiating through a broker, is rarely wasted time in Morocco. Non-resident buyers should also ask each bank about its specific conditions for foreign income files, as required down payments and accepted income documentation vary from one lender to another.

Rental income tax in Morocco: what you actually pay

Moroccan rental taxation is more favourable than many international investors expect. For long-term rental, the standard regime applies a 40% allowance on gross rents, and only the remaining 60% goes through the progressive income tax scale: 0% up to 40,000 MAD of taxable base, 10% up to 60,000, 20% up to 80,000, 30% up to 100,000, 34% up to 180,000 and 37% beyond. Here is what that produces in practice:

Depending on the landlord’s profile, a final withholding tax of 10% or 15% can replace the progressive scale. Whether that option beats the standard regime depends on your rent level and your other Moroccan income, so the arbitration deserves validation by a tax adviser. For the wider picture of recurring property taxes (housing tax, municipal services tax), see our guide to property tax in Morocco.

Purchase costs: budget about 7% on top of the price

Acquisition costs in Morocco are often underestimated by first-time foreign buyers. For a property at 1,500,000 MAD (about $150,000), expect registration duties of 60,000 MAD (4%), land registry fees of about 22,700 MAD (1.5% plus a fixed fee), notary fees of about 18,000 MAD (1% plus VAT) and sundry costs of about 1,500 MAD. The total comes close to 102,000 MAD (about $10,200), or 6.8% of the price. Build this into your financing plan from day one: a purchase budget that ignores these costs is 7% too optimistic before you have even collected a dirham of rent.

Long-term versus short-term rental yields in Marrakech

Reference scenario for long-term rental: an apartment bought for 1,500,000 MAD all costs included (about $150,000), rented at 8,000 MAD per month (about $800). That produces a gross yield of 6.4% and a net yield of about 5.6% after routine running costs. These are solid numbers by international standards, and they come with the stability of a year-round tenant.

Short-term rental raises the ceiling. A well-positioned property operated at 90 euros per night (roughly 990 MAD, about $99) with 65% occupancy generates about 21,350 euros gross per year, and about 17,100 euros net once operating costs of roughly 25% are absorbed. The decisive variables are taxation and seasonality: occupancy in Marrakech swings between the high season around winter holidays and spring, and the hotter summer months. The context, however, is clearly supportive: Morocco welcomed 19.8 million tourists in 2025, up 14% year on year, and Marrakech-Menara airport handled more than 10.2 million passengers according to ONDA. Demand for quality short lets in Marrakech has never been deeper.

The honest comparison is not gross versus gross. Short lets carry management intensity: guest turnover, linen, cleaning, pricing, platform fees. That is precisely why delegating to a professional short-let operator in Marrakech usually pays for itself, both in occupancy and in peace of mind.

Illustrative example (simulation): an investor from Manchester runs the numbers

Illustrative example (simulation): figures are indicative and this is not a real client case. Take a British investor based in Manchester with a budget of 1,600,000 MAD (about $160,000) all-in for a two-bedroom apartment in Gueliz. Purchase costs of about 7% mean the property itself costs about 1,500,000 MAD. She finances 1,000,000 MAD over 20 years at 5%, so about 6,600 MAD (about $660) per month, and puts in the rest as equity.

Rented long-term at 8,000 MAD per month, the apartment generates 96,000 MAD of annual rent (about $9,600). After the 40% allowance, her taxable base is 57,600 MAD, which lands in the lower brackets of the scale, producing a modest Moroccan income tax bill. Her rent covers the mortgage payment with a small margin, and her real return builds through capital repayment: by year 10, more than 380,000 MAD of the loan has been repaid. If she switches the same apartment to short lets at 65% occupancy, gross income roughly doubles, but so do operating demands, which is where a local manager changes the equation. Again: simulation only, to be validated against her own tax position in the UK and Morocco.

Estimate your own yield in 30 seconds

UK and international investors: double taxation and repatriating income

Moroccan rental income is taxable in Morocco first. For UK residents, the UK and Morocco signed a double taxation convention on 8 September 1981, in force since 29 November 1990, which organises relief so the same income is not fully taxed twice; the official text and guidance are available on gov.uk. In practice, UK residents declare worldwide income to HMRC and typically claim credit for Moroccan tax paid, within the treaty rules. Investors resident elsewhere should check the specific convention between their country of residence and Morocco, since the mechanics differ from one treaty to another.

On repatriation: Morocco has foreign exchange rules administered by the Office des Changes. Foreign investors who fund their purchase in foreign currency and register the investment correctly at the time of purchase preserve the ability to transfer rental income and future resale proceeds abroad under that framework. Doing this paperwork properly at acquisition is far easier than reconstructing it years later, and it is one of the points we systematically flag to new owners.

Best practices, and the mistakes we see most often

What works: negotiating the rate on every financing file, since a single point is worth about 130,000 MAD over 20 years in the reference scenario; budgeting the 7% purchase costs from the start; choosing the tax regime (progressive scale with 40% allowance versus final withholding) with an adviser rather than by default; registering the foreign investment with the exchange authorities at purchase; and pricing short lets on real seasonality data rather than a flat annual average.

What fails: buying on gross yield alone and discovering operating costs later; skipping the title and contract checks that make a purchase safe; underestimating turnover work in short lets and losing rating momentum on the platforms; and leaving the property unmanaged from abroad, which usually costs more in vacancy than professional management would cost in fees.

Marrakech through British and international eyes: the winter sun economy

Part of what makes Marrakech rental demand so resilient is cultural as much as economic. For travellers from Manchester, London or Amsterdam, the city is the closest place where winter genuinely stops: three to four hours of flight, no jet lag worth mentioning, and a December afternoon at 20 degrees in a riad courtyard. That winter sun reflex, deeply rooted in northern European travel habits, fills the exact months when many Mediterranean destinations go quiet. It shapes the rental calendar too: British and Dutch guests dominate autumn and winter bookings, while Gulf and domestic travellers carry the summer. An owner who understands this rhythm, and prices each season for its actual audience, extracts noticeably more from the same property than one who applies a single year-round rate.

Frequently asked questions

How is long-term rental income taxed in Morocco?

The standard regime applies a 40% allowance on gross rents, then the progressive income tax scale on the remaining 60%. On 120,000 MAD of annual rent, that produces about 4,400 MAD of tax, an effective rate of 3.7%.

Can I opt for a flat withholding tax instead of the progressive scale?

Depending on the landlord’s profile, a final withholding of 10% or 15% can replace the progressive scale. Which option wins depends on your rent level and other Moroccan income, so have an adviser run both calculations before you choose.

How much are purchase costs in Marrakech?

Budget about 7% of the price: 4% registration duties, about 1.5% land registry plus a fixed fee, about 1% notary plus VAT, and sundries. On a 1,500,000 MAD property that is roughly 102,000 MAD.

What does a 1,000,000 MAD mortgage cost over 20 years?

At an indicative 5% rate, the monthly payment is about 6,600 MAD and cumulative interest reaches 583,900 MAD, so the total repaid is about 1,583,894 MAD, 58% above the borrowed capital.

What gross yield can I expect from long-term rental in Marrakech?

In the barometer scenario, an apartment at 1,500,000 MAD all-in rented at 8,000 MAD per month yields 6.4% gross and about 5.6% net after routine charges. Actual results depend on location, condition and rent level.

Is Airbnb more profitable than long-term rental in Marrakech?

Usually yes on gross income: 90 euros per night at 65% occupancy generates about 21,350 euros gross per year in the reference scenario. But operating costs of roughly 25%, seasonality and management intensity narrow the gap, which is why professional operation matters.

Will I be taxed twice on my Moroccan rental income?

Not fully, if your country has a double taxation convention with Morocco. The UK-Morocco convention, signed in 1981 and in force since 1990, organises relief for UK residents. Check the treaty for your own country of residence and take advice on how the credit works in your case.

Can I transfer my rental income out of Morocco?

Yes, within the Moroccan foreign exchange framework, provided the original investment was funded in foreign currency and properly registered. That registration at purchase is the key step that preserves free transferability of income and resale proceeds.

How strong is tourist demand in Marrakech right now?

Morocco recorded 19.8 million tourist arrivals in 2025, up 14%, and Marrakech-Menara airport passed 10.2 million passengers according to ONDA. Short-let demand in Marrakech is correspondingly deep across most of the year.

Do I need a local property manager if I live abroad?

It is not legally required, but distance management of a short let is hard: guest turnover, cleaning, pricing and maintenance all happen on the ground. A professional manager typically recovers its fee through higher occupancy and better rates.

Conclusion: run your numbers, then test them against reality

The 2026 fundamentals for rental property investment in Marrakech are healthy: financing is available at rates where negotiation genuinely pays, the tax regime on rental income is light at typical rent levels, and tourist demand has never been higher. The difference between a mediocre and an excellent investment lies in execution: the right purchase, the right regime, the right rental strategy, the right operator.

If you want a second pair of eyes on your project, request a free rental income assessment for your Marrakech property. With more than 25 years of expertise, Armonia Solutions will tell you what your property can realistically earn, in long-term rental and in short lets, and what we would do to get it there.

Sources

Bank Al-Maghrib (indicative credit market data, 2026); Moroccan Finance Law 2026 (income tax scale and rental allowance); Ministry of Tourism of Morocco and ONDA (2025 tourism and airport statistics); UK-Morocco Double Taxation Convention (1981, in force 1990), gov.uk; Armonia Solutions calculators, July 2026. Figures are orders of magnitude to validate for each individual situation and do not constitute financial, tax or legal advice.