Rental yield in Tangier: the practical guide

What rental yield in Tangier can you realistically expect, and should you go for long-term or holiday lets?

Many buyers in Tangier want a property that earns money. But the figures circulating online vary enormously, and often ignore charges and months without a tenant. Here is how to calculate a realistic yield and choose the right strategy.

Rental yield in Tangier: gross or net?

Gross yield = annual rent ÷ purchase price × 100.
Net yield = (annual rent – charges, taxes, maintenance, vacancy) ÷ (purchase price + buying costs) × 100.

Net yield is what counts. Property portals often quote gross yields of around 5 to 8% for long-term letting in Morocco’s major cities, but your result depends mainly on the area, the purchase price and how you manage the property.

A worked example

Fictitious example, for illustration only.

	Amount
Purchase price	MAD 900,000
Buying costs (registration, land registry, notary), around 6%	MAD 54,000
Monthly rent	MAD 5,500
Rent over 11 months (1 month vacant)	MAD 60,500
Service charges and maintenance	MAD 9,000
Gross yield (66,000 ÷ 900,000)	7.3%
Net yield before tax (51,500 ÷ 954,000)	5.4%

The gap between gross and net is significant: always run this calculation before you buy.

Long-term or holiday lets?

	Long-term	Short-term (Airbnb, Booking)
Income	Stable, predictable	Higher in summer and during events, low in winter
Management	Light	Heavy (cleaning, check-ins, listings) or a paid manager
Rules	Standard lease	Law 80-14: authorisation or declaration, guest registration, tourist tax
Suitable areas	Iberia, centre, Tanja Balia, near employment zones	Malabata, centre, seafront

Many owners combine both: holiday lets in summer, medium- or long-term letting the rest of the year. Always check that the residence rules allow short-term letting.

Areas by strategy

Employees and managers: Gueznaya and the Route de Rabat, near employment zones and the airport.
Students and young professionals: Ziaten, near the campus.
Families and expats: Iberia, California, Moujahidine & Golf.
Holidaymakers: Malabata and the city centre.

Tax: the essentials

Rental income is taxable in Morocco. For unfurnished letting, an allowance applies before tax is calculated; furnished and holiday letting follow other rules. If you live abroad, the tax treaty between Morocco and your country of residence also applies. Get advice from an accountant before choosing your approach.

Our tips for a good yield

Buy at the right price: that is where the yield is made. Off-plan projects at launch often offer the best prices.
Choose a property that is easy to let: 1 or 2 bedrooms, well located, with parking.
Count the charges: a residence with a pool lets better but costs more in charges.
Be wary of very high “guaranteed” yields.