Rental property credit credit
Credit for rental property purchase (studio, rented apartment) in Morocco treated as investment. Banks require higher down payment (30-40%) and consider 70-80% of expected rents in borrowing capacity calculation.
Key characteristics
Amount
500-5,000K MAD
Average rate
4.5%
Duration
15-25 ans
Down payment
30-40%
Specifics of this credit type
Future rents partially integrated in income (generally at 70-80% to account for rental vacancy and charges). Rate higher than primary residence (+0.3-0.5 pt) as risk perceived as higher.
Eligibility
Comfortable profile already having primary residence paid or in progress. 30-40% down payment. Good banking history. Some banks prefer profiles having already managed rental investment.
Step-by-step process
- 1Rental potential assessment (market studies, dynamic zones)
- 2Profitability simulation (rent / price = 4-7% gross/year expected)
- 3Banking file with rent projection
- 4Appraisal and evaluation
- 5Signing and immediate rental
2026 taxation
Rents received taxed at IR: simplified 10% regime if rents < 120K/year, or normal regime (40% abatement, IR scale 0-37%). TH and TSC at owner's expense. Resale capital gain taxed at 20% (without primary residence exemption).
Mistakes to avoid
- Overestimating rents in business plan (plan 10-15% vacancy)
- Forgetting condo charges (5-15% of rents)
- Not anticipating maintenance works (1-2% of value per year)
- Choosing neighborhood without rental demand (prolonged vacancy risk)
Additional costs
Annex fees identical to primary residence (9%) + rental listing fees (agency 1 month rent, registration contract 200 MAD). PNO insurance (Non-Occupant Owner) 0.15% value/year.
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