Property ROI Morocco Portugal: Comparing Luxury Real Estate Markets in 2025

Investors have been debating for a long time about whether Morocco or Portugal yields higher returns on luxury properties. In this article we analyze property ROI Morocco Portugal in terms of yields, taxes and lifestyle, empowering high-net-worth people (HNWIs) entrepreneurs and experienced investors with concrete knowledge.

Morocco vs Portugal: Snapshot of Luxury Real Estate

Price Per Square Metre in Prime Areas

Quick summary: Portugal commands higher entry costs, however the appreciation curve in Morocco is more steep and could boost potential capital gains.

Rental Yields: Property ROI Morocco Portugal Head-to-Head

Short-Term Luxury Rentals

• Marrakech riad (medina, 4 suites): ADR EUR280, 65 % occupancy – 10-12 % gross yield

• Lisbon penthouse (Chiado, 2 beds): ADR EUR350, 70 % occupancy – 7-9 % gross yield

What’s the reason? Morocco is ahead of the pack: Lower acquisition costs boost returns, and incentives to travel by government increase occupancy.

Long-Term Executive Lets

• Casablanca marina apartment: EUR30/m2 monthly – 5-6 % net yield

• Porto loft on the riverside: EUR25/m2 monthly – 4-5% net yield

Portugal’s euro lease rates that are stable are attractive to investors who are cautious However, Morocco is now offering competitive net yields, with tax benefits (see the table below).

Taxation & Ownership Structure

Morocco

• Rental tax: Progressive, first MAD 30,000 exempt (approx. EUR2,700)

• Capital gains: 20 % flat after deductions

• Ownership by foreigners: 100% freehold Farmland excluded

• Residency: Premium Investor Visa for EUR500k+

Portugal

• Rental tax: 28 % flat (can drop to 25 % via deductions)

• Capital gain: 28 percent (50 percent tax-deductible if you are a tax-resident)

• Golden Visa (2024 reboot): Excludes most Lisbon/Porto properties, with a focus on low-density and commercial areas

• NHR regime sunset: Fewer tax breaks for new applicants

Finalization: Lower tax rates in Morocco improves the overall property ROI Morocco Portugal comparisons, particularly for rentals with high yields.

Market Liquidity & Exit Strategy

Morocco’s Growing Buyer Pool

GCC Investors and French retirees lead the way the market, while demand from North America is growing due to the introduction of direct flights. Luxury riads are selling in less than 90 days if they are priced at or at or below EUR1 million.

Portugal’s Mature Resale Channel

Lisbon has a thriving market which is backed through EU buyers. However, the stricter rules for visas have slowed the growth of ultra-prime in 2025, and have extended the average days-on-market up to 120 days.

Lifestyle & ESG Considerations

Sustainability Drives Value

• Morocco: Solar heating of water in riads cut costs by 30 % with retrofit costs minimal.

• Portugal: EU-subsidised green refurb grants boost EPC rating, which boosts resales.

Quality of Life

• Marrakech: 300 sunny days private golf resorts UNESCO culture.

• Lisbon: Atlantic beaches, stable eurozone banking, Schengen mobility.

The investors who weight their lifestyles with returns usually split portfolios between two categories: climate and currency.

Risk Assessment Matrix

Balanced portfolios gain from both markets, while also reducing the risk of a single country.

Investor Personas & Ideal Strategies

HNWI Seeking Double-Digit Yield

• Select: Boutique riad or villa in Marrakech

• Hold Duration: 3-5 years, ARV increase via design improvements

• Target ROI: 11-14 % net

Family Office Hedging Currency

• Select: Prime Lisbon penthouse and diversify it by acquiring a Casablanca marina assets

• Hold Duration: 7+ years

• Goal R.O.I. 8.5% blended, after tax

Case Study: Diversified Portfolio

Simplified scenario: EUR2 million capital divided 50/50

1. Riad to Medina (EUR1 M):

   • Renovation EUR250k – revaluation EUR1.6 m

   • Year-3 rental yield of 12 % gross

2. Lisbon Chiado Loft (EUR1 m):

   • Stable 6 % gross yield

   • Hedge in Euro-denominated currency

Blended Net Return: 10.2 percent for five years following costs–a convincing illustration of property ROI Morocco Portugal synergy.

Conclusion: Where Does the Smart Money Go?

Both Morocco as well as Portugal provide compelling luxury real estate opportunities for 2025. Morocco is a top choice due to its greater gross yields and lower taxes, whereas Portugal provides stability in the euro and mature exit options. Investors who are smart often combine these advantages, capturing upside in Marrakesh while securing the portfolios of Lisbon and Porto.

Are you ready to optimize the effectiveness of your property ROI Morocco Portugal strategy? Contact our advisors to request customised market data Off-market listings, market data, or cross-border tax structure.