How to Calculate Rental Yield in Morocco
Aqarrati Team
Rental Management Experts in Morocco
Rental yield in Morocco is the ratio of the annual income generated by a property to its total acquisition cost. Gross yield is calculated by dividing the annual rent by the purchase price and multiplying by 100. Net yield factors in costs, taxation, and vacancy periods. In 2026, gross yields in Casablanca range between 4% and 6%, compared to 5–8% in cities such as Tangier, Agadir, or Meknes. A property management tool like Aqarrati lets you automatically track the real yield of each property.
Gross yield: the basic formula
Gross yield is the simplest ratio for comparing investments. It does not account for costs or taxation but provides a quick initial benchmark.
Formula: Gross yield (%) = (Monthly rent × 12) ÷ Purchase price × 100 Example: An apartment bought for 800,000 MAD rented at 4,500 MAD/month generates a gross yield of (4,500 × 12) ÷ 800,000 × 100 = 6.75%.
Net yield: the real return after costs
Net yield is more representative of reality. Deduct from the annual rent: condo fees, property tax, income tax on rental income (10–40% depending on the amount), management fees (5–10% if delegated to an agency), routine maintenance costs (estimated at 0.5–1% of property value per year), and vacancy periods (averaging 1 to 2 months per year).
Yield comparison by city in 2026
| City | Average gross yield | Price per m² | Average rent (2-bed) |
|---|---|---|---|
| Casablanca | 4–6% | 12,000–22,000 MAD | 4,000–7,000 MAD |
| Rabat | 4–5.5% | 10,000–18,000 MAD | 3,500–6,000 MAD |
| Tangier | 5–8% | 7,000–14,000 MAD | 3,000–5,500 MAD |
| Marrakech | 5–7% | 8,000–16,000 MAD | 3,500–6,000 MAD |
| Agadir | 5.5–8% | 6,000–12,000 MAD | 3,000–5,000 MAD |
| Meknes | 6–9% | 5,000–9,000 MAD | 2,500–4,000 MAD |
Taxation of rental income in Morocco
Rental income is subject to personal income tax (IR) in Morocco. A standard deduction of 40% applies to gross annual declared rents. The tax rate follows the progressive IR schedule, but rental income benefits from a flat rate of 10% above 30,000 MAD in annual rental income.
Frequently asked questions
What is the minimum target yield for Moroccan rental property?
A net yield above 4% is generally considered acceptable. A net yield of 5–6% is good. Above 7% is excellent for the Moroccan market.
Is it better to invest in Casablanca or smaller cities?
Casablanca offers greater liquidity and stable rental demand, but lower yields. Secondary cities like Tangier or Agadir offer better yields with growing demand.
How to declare rental income in Morocco?
Rental income must be declared annually to the Directorate General of Taxes (DGI) using the rental income declaration form, before 1 March of the following year.
Is vacancy a significant problem in Morocco?
Average vacancy is 1 to 2 months per year in major cities. It can be reduced through proactive lease renewal management and fast re-letting.
Can property management software improve yield?
Yes. A tool like Aqarrati automates reminders, reduces payment delays, optimizes vacancy periods, and provides real-time yield dashboards.
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