Net rental yield in Marrakech: what is left after costs and tax in 2026

Listings almost always show a gross yield. What matters to an investor is what remains after costs and tax. In Marrakech the gap between the two is smaller than expected on the tax side, and wider than expected on the cost side.

From gross to net yield: the formula

Gross yield is annual rent divided by purchase price, times 100. It ignores costs and taxes. For net yield, deduct from annual rent the local property tax, insurance, management fees, non-recoverable co-ownership charges, vacancy periods and income tax.

According to Masaken, annual tax, insurance, management and co-ownership charges cut net yield by roughly 1.5 to 2 points versus gross.

Note that the purchase price to use is not only the price on the deed: notary fees, registration duties and agency commission come on top (see our articles on those costs).

What gross yields look like in Marrakech in 2026

Two sources give consistent but not identical orders of magnitude, a reminder that these are estimates, not guarantees:

• Masaken: 7.1% gross in Marrakech, for an estimated net between 4.7% and 5.9% (2025-2026 estimates based on average prices per m² and rents).
• L’Agence Immobilière (Morgan & James, updated July 2026): 4 to 6% gross for long-term rentals, 6 to 10% gross for seasonal rentals in tourist areas, noting that net requires deducting costs, maintenance and vacancy.

Short-term letting therefore shows a higher gross figure, but also heavier costs, vacancy and management: the net is often closer to long-term letting than expected.

Tax on rent: scale, 40% allowance and flat rate

For an unfurnished residential let, the standard regime applies a flat 40% allowance to gross rent: you are taxed on 60% of rent, with no proof of expenses. The annual income tax scale applied to that net base, as cited by Berrynoon and Démarches Maroc, is:

• up to 40,000 MAD: 0%
• 40,001 to 60,000 MAD: 10%
• 60,001 to 80,000 MAD: 20%
• 80,001 to 100,000 MAD: 30%
• 100,001 to 180,000 MAD: 34%
• above 180,000 MAD: 37%

The 20% flat rate, introduced by the 2025 Finance Law, applies only to rents subject to withholding (company or professional tenants). It applies to gross rent, without the 40% allowance, so it is pointless for an individual renting to an individual. According to Démarches Maroc, non-residents have the same obligations as residents; filing is online at tax.gov.ma before 1 March for the previous year’s rent.

Caution: sources disagree on the exemption threshold (some cite 30,000 MAD of gross rent, others 40,000 MAD of net base, about 66,700 MAD gross rent). Check the current threshold with the tax authority (DGI) or a tax adviser before building a calculation on it.

Two worked examples

Teaching assumption: a 6% gross yield, consistent with the long-term range above.

Case 1: apartment at 1,200,000 MAD, rent 6,000 MAD a month (72,000 MAD a year).

• Taxable base: 72,000 × 60% = 43,200 MAD.
• Income tax: (43,200 × 10%) − 4,000 = 320 MAD a year.
• Costs (1.5 to 2 points of the price, i.e. 18,000 to 24,000 MAD): about 48,000 to 54,000 MAD remain before tax, 47,680 to 53,680 MAD after.
• Net yield after tax: about 4.0% to 4.5%.

Case 2: property at 2,000,000 MAD, rent 10,000 MAD a month (120,000 MAD a year).

• Taxable base: 120,000 × 60% = 72,000 MAD.
• Income tax: (72,000 × 20%) − 10,000 = 4,400 MAD a year, i.e. 3.7% of gross rent.

These are illustrations: your actual costs, vacancy rate and other property income change the result. In both cases the lesson is the same: tax is a secondary item; costs and vacancy are the real lever.

Checklist before buying to let

• Compute yield on the all-in price (deed, fees, commission), not the asking price.
• Ask for the real co-ownership charges and local tax of the specific property.
• Use a prudent vacancy assumption, especially for short-term lets.
• Simulate income tax with the scale and the 40% allowance, adding up all your rents.
• Check the exemption threshold and the flat-rate option with the DGI or a tax adviser.
• Compare the net result with other investments before deciding.

This article gives estimates for information only and is neither tax advice nor a promise of return.