Rental Yields in Tetouan: What Investors Need to Know (2026 Guide)
If you are considering investing in property in Tetouan, understanding rental yield is essential before making a purchase. Many buyers focus only on the purchase price or the rental income, but the key question is simple: what return will the property actually generate?
In this guide, we break down the key points you need to understand, using realistic examples from the Tetouan market.
What Is Rental Yield?
Rental yield is the percentage return you earn from renting out a property compared to the total amount you invested.
It is calculated as: Annual Rent ÷ Total Investment Cost × 100
There are two important types: - Gross yield – calculated before expenses - Net yield – calculated after taxes and ownership costs
For any serious investment decision, net yield is the figure that matters.
Example: Rental Yield in Tetouan
Let’s use a realistic range based on current prices in Tetouan.
Purchase range (3-bedroom apartments): - 600,000 MAD to 1,000,000 MAD
Monthly rent range: - 3,500 MAD to 6,000 MAD
Lower-End Scenario
Purchase price: 600,000 MAD
Monthly rent: 3,500 MAD
Annual rent: 42,000 MAD
Gross yield: 7.0%
Higher-End Scenario
Purchase price: 1,000,000 MAD
Monthly rent: 6,000 MAD
Annual rent: 72,000 MAD
Gross yield: 7.2%
At first glance, these yields may seem attractive. However, they do not include acquisition costs or ongoing expenses.
What Does It Actually Cost to Buy in Tetouan?
When purchasing property in Morocco, additional costs must be factored in:
4% transfer tax
2.5% agency fee
1.5% notary fee
1.5% land registry (Muhafad) fee (for titled properties)
This represents approximately 8% to 9.5% on top of the purchase price.
Adjusted Yield (Including Purchase Costs)
Lower-End Scenario - Purchase price: 600,000 MAD - Additional costs (~9.5%): 57,000 MAD - Total investment: 657,000 MAD - Annual rent: 42,000 MAD - Net yield before tax: 6.39%
Higher-End Scenario - Purchase price: 1,000,000 MAD - Additional costs (~9.5%): 95,000 MAD - Total investment: 1,095,000 MAD - Annual rent: 72,000 MAD - Net yield before tax: 6.58%
In both cases, the yield is already lower once full acquisition costs are included—and this still excludes running costs and taxes.
Rental Tax in Morocco
Rental taxation in Morocco can be complex, and there have been recent changes compared to previous years. Rather than summarising it briefly, it is recommended to consult a qualified accountant who specialises in real estate for guidance tailored to your situation.
Current Property Prices in Tetouan (2026)
Modern 3-bedroom apartments in Tetouan typically sell for: - Around 600,000 MAD in less central areas - Up to 1,500,000 MAD in newer or prime locations
Rental prices generally range from: - 3,500 MAD to 6,000 MAD per month
Yields vary depending on several factors: - Area within Tetouan - Building condition - Parking availability - Furnished vs unfurnished - Demand from expats or locals - Proximity to schools and amenities
What Is Considered a Healthy Yield?
In Tetouan: - 3%–4% net yield is common in stable residential areas - 4%–5% net yield is considered strong for lower-risk investments - Above 5% is very good, often linked to higher risk or older properties
Tetouan is generally a stable, long-term market rather than a high-yield one.
Other Costs to Consider
Beyond purchase costs and taxes, investors should also account for: - Building management fees (syndic) - Maintenance and repairs - Vacancy periods - Furnishing (if targeting higher rent) - Legal and accounting advice
These ongoing costs will reduce your net return over time.
Gross vs Net Yield: Why It Matters
A common mistake is calculating yield based only on the purchase price while ignoring: - Acquisition costs - Taxes - Running expenses
This leads to unrealistic expectations.
Yield should always be calculated based on the total amount invested, not just the property price.
Who Should Invest in Tetouan?
Tetouan is well suited to: - Long-term investors - Buyers looking for stable rental income - Investors seeking lower entry prices compared to larger cities - Buyers who value lifestyle alongside returns
It may not be ideal for investors looking for high short-term returns.
Final Thoughts
Rental yields in Tetouan are moderate but stable. When calculated properly, most investors should expect around 3.5% to 4.5% net yield after costs and taxes.
The key to a successful investment is buying in the right location, at the right price, and carrying out proper due diligence.
At JYRO Real Estate, we help investors: - Analyse real rental yields - Understand full purchase costs - Avoid common mistakes - Identify high-demand rental areas - Structure investments correctly from the start
If you are considering investing in Tetouan, it is important to understand the full financial picture before committing.