How to Calculate Rental Yield 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

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.