Morocco, LAND OF WONDERS

Investing in Tangier: Opportunities for 2025

Discover why investing in Tangier, Morocco, is a smart choice for savvy investors in 2025. Explore the city's unique blend of modernity and tradition, its strategic location, and promising sectors ...

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By NASSIMI Abdelhakim

7/10/202516 min read

Are you tempted to invest but have no idea which sectors offer the most growth? Are you also unsure of which region or city would be best for you to invest in? When it comes to investing, it's generally accepted that some cities or regions offer more opportunities than others.

The city of Tangier, located in northern Morocco, is one of the cities that boasts countless assets and is sure to entice you to make your investment project a reality. This is the perfect opportunity to take a closer look at this city for your future investment project. Let's take a closer look at the main features of this charming Moroccan city that make it an undeniable investment destination and that may help you make your decision.

If you are still spoiled for choice, this article offers you 3 investment ideas in Tangier, the city that attracts more and more investors and which offers many assets that make it a wise choice for a profitable investment and accessible to all.

The 1st investment idea: Rental property investment

This first form of investment involves purchasing a sustainable property that is likely to increase in value over time and renting it out. The rent collected will supplement your income. You can resell your property at any time and benefit from capital gains.

The largest city in northern Morocco, Tangier is an ideal location for rental property investment. The housing market tension in this area is around 14%. This is an indicator that measures the balance of power between real estate buyers and sellers in a city.

Investing in rental property in Tangier is a very profitable project given the high rental demand that characterizes the city. Indeed, the city of Tangier is one of the Moroccan cities where rental demand is very high throughout the year and particularly during the summer period, which constitutes a major asset for investors.

You can finance your investment project either with your own funds or, failing that, with a bank loan. If you choose the second financing option, the loan installments to be honored will be offset by the rents that will be collected.

Several factors are behind the increase in rental demand in the city of Tangier:

Tangier, Morocco's second economic hub

Tangier is the second largest economic hub in Morocco, after Casablanca. A city's economic dynamism reflects its growth potential. A dynamic city generally offers more professional opportunities, thus fostering increased demand for housing. Furthermore, steady economic growth often indicates long-term appreciation of real estate values. Tangier's economic attractiveness makes it a desirable location for active tenants looking for work. Tangier's industrial activity is highly diversified: textile, chemical, mechanical, metallurgical, and naval industries. The city currently has four industrial zones, two of which have free zone status (the Tangier Free Zone and the Port Free Zone). The infrastructure of the city of the strait is significant: a port managing the flow of goods and passengers (over a million travelers per year) and incorporating a marina and a fishing port.

Tangier demonstrates significant economic dynamism and thus has the largest employment pool in Morocco, attracting many workers looking for work.

Investing in rental property in Tangier is an interesting and profitable project, particularly in the neighborhoods closest to industrial zones and employment areas.

Tangier, the third most populous city in the country

Located in the northwest corner of the country on the Strait of Gibraltar, the city is fourteen kilometers from the Spanish coast.

The city's port is the main destination for passenger ships from Europe. Tangier is, therefore, one of the transit points for travelers traveling between Europe and Africa.

Based on 2018 population projections, the Tangier-Tetouan-Al Hoceima region is home to a population of 3,725,191, representing 10.6% of Morocco's population. The urban population stands at 2,287,315, reflecting an urbanization rate of 61.4%, compared to 62.4% recorded at the national level.

The population of Tangier in 2024 is now estimated at 1,348,850. Its population reached 947,952 at the 2014 census. In 1950, Tangier's population was 99,582. Tangier grew by 34,670 inhabitants last year, representing an annual change of 2.64%. These population estimates and projections come from the latest revision of the United Nations World Urbanization Prospects. These estimates represent the Tangier metropolitan area, which generally includes the population of Tangier in addition to adjacent suburban areas.

Tangier's population has experienced the strongest growth over the years, with an average annual increase of approximately 3%, twice the national average, thus confirming its strong attractiveness to the national population. This large demographic leap, resulting from rapid urbanization, generates diverse socio-spatial impacts and repercussions, which has increased the need for housing in all areas of the city.

Tangier, an unmissable tourist destination

Located on the Strait of Gibraltar, Tangier has the particularity of being open to both the Mediterranean Sea and the Atlantic Ocean.

Thanks to its unique geographical location, Tangier is considered one of the most popular tourist destinations in the country, attracting millions of tourists each year. This creates a constant demand for vacation rentals and second homes. Investing in real estate in Tangier can generate attractive rental income, especially during peak tourist season.

A major seaside resort, Tangier has a variety of hotel and tourist facilities, a vast beach stretching over 7 km, and a medina (old town) where artisanal trade is developing (leather goods, wooden and silver items, traditional clothing and shoes, etc.).

Tourist activity is mainly based on seaside activities and the city's historical sites such as the Hercules Caves, the Gotta City, the Roman tombs, the Phoenician and Portuguese remains of Assilah, the coasts of Assilah up to Ksar Sghir and the natural areas made up of forests on both coasts.

It's a fascinating city that combines traditional culture with European influence. Tangier is a prime location for rental property investment, attracting both local and foreign visitors. Rental demand is so strong that prices continue to rise, sometimes dramatically, especially during the summer months. Investing in rental property in Tangier is therefore a profitable and highly secure investment, leading to the creation of long-term assets and generating sustainable rental income.

Tangier, an attractive city for students

The development of economic activities in the city of Tangier has led to an increase in the provision of higher education. There are a large number of renowned educational institutions: business and management schools, engineering schools, law faculties, science faculties, hotel and translation institutes, etc.

The number of students enrolled in these establishments continues to increase from year to year, leading to strong rental demand. Tangier is a dynamic student city with a continuous rental demand. Investing in student housing in Tangier is an interesting project, first of all because it is a growing market due to the constant demand for affordable housing for students. Rental demand is therefore high and profitability is generally attractive as well. In addition, renting to students promises rental stability because tenant turnover is less frequent than for other types of rental, and a well-located property easily attracts other tenants in the event of turnover. Rental vacancies are therefore rare and often reduced for this type of accommodation.

The preferred neighborhoods for student real estate investments are the BRANES, AIDA VILLAGE, and BOUKHALEF sectors (close to the city's university campus). These student-favorite areas offer high returns. However, if you're considering a property investment, the Jbel Elkebir, Malabata, and Marshan neighborhoods are ideal for your needs.

The presence of reputable primary and secondary schools in Tangier can also lead families to seek housing in this city to educate their children. Buying in a city that has schools from kindergarten to high school is a real advantage in encouraging tenants to settle in a long-term home.

Tangier, a city offering a good quality of life

Living in a safe environment and enjoying a good quality of life are essential elements for everyone's well-being. In Morocco, Tangier stands out for its ability to offer these ideal conditions and a better living environment: services to the population, accessibility to housing, the presence of shops and services meeting daily needs, security, transportation, pollution, comfort (noise, odors, etc.), green spaces, public spaces, sports and cultural facilities, etc. All of these elements can greatly influence a tenant's decision.

Living in Tangier is very pleasant because the city offers a good standard of living, a mild climate all year round and proximity to the European continent.

The districts to favor for a rental property investment guaranteeing a good quality of life are largely those of the city center (Pasteur, Mohamed V, Mohamed VI, Malabata, Iberia, Califirnia, Marshan, Branes, Administrative District, Jbel Elkebir, Boubana).

It should be noted that rental demand can vary significantly from one neighborhood to another. There can also be significant differences in attractiveness between the sectors of the city chosen for real estate investment.

Tangier combines a good quality of life with a pleasant climate, exceptional cultural heritage, and promising growth prospects. For foreign investors, the city offers a favorable legal framework and a diversified economy, ensuring growing rental demand. This is the ideal time to invest in a promising and constantly evolving market.

The 2nd investment idea: investing in the hotel industry

The Tangier hotel market is a sector in which a thoughtful and well-researched investment can prove very profitable. Indeed, Tangier, which has become the leading tourist destination for local tourists, is a region where demand for rooms and hotels is very high throughout the year. However, it turns out that, despite this growing demand, the hotel supply is insufficient to meet this demand or may be inadequate. Indeed, the city's hotel supply is currently struggling to meet the growing tourist demand, and the hotel sector, which is 80% owned by independent owners, is lacking investment and hotel establishments that meet the expectations of the city's visitors.

You can invest in the sector by constructing new buildings or by acquiring existing hotels with good locations but which deserve to be renovated. Tangier and its regions have dilapidated or even closed tourist accommodation units, negatively impacting the attractiveness of the destination for tourists and investors. These hotel units are generally run by owners who do not have the means to renovate them and who are forced to sell their properties. In other words, a large part of the existing hotel offer consisting of hotels of 2 stars or less is no longer adapted to the needs of a new clientele which is more demanding (business clientele, for example).

The advantages of the city of Tangier for an investment in the hotel industry

*Tax benefits

Tax exemption for the first five years of investment is one of the most attractive and important advantages that Morocco offers to encourage investors in the hotel sector.

After the five years, the investor will also be able to benefit from another tax advantage, namely a tax rate on profits reduced to 17.5%.

*Financing benefits

Investors in the hotel sector can benefit from incentives by providing them with the necessary support to finance their projects.

To this end, several investment funds are offered for investments in the hotel sector:

The RENOVOTEL fund:

The Hotel Unit Renovation Fund "RENOVOTEL" managed by the Caisse Centrale de Garantie, is a mechanism designed to support the financing of the upgrading and modernization of establishments in Morocco. It allows for joint financing with banks and under advantageous conditions, tangible and intangible investments for upgrading or repositioning the product with the aim of creating added value, improving the quality of services and taking into account environmental issues. All classified establishments (5-star, 4-star, 3-star, 2-star, 1-star hotels, club hotels, hotel residences and guest houses) can benefit from this mechanism.

The CAP HOSPITALITY program:

This program provides loans to hoteliers, ranging from 3 to 100 million dirhams, with a maturity of up to 12 years, including a two-year grace period. The government will cover all interest on these loans, providing a unique, time-limited opportunity for hotel establishments to modernize their infrastructure. Eligible establishments that have not been renovated in the past five years will be eligible for this program, which covers renovation work, upgrading, the acquisition of furniture and equipment, and the implementation of energy efficiency programs.

*Financial incentives for the development of seaside hotel projects

To support hotel investors in developing units within seaside resorts, an incentive mechanism has been put in place to reduce the impact of land tax on investment costs by subsidizing half of the land cost, up to a maximum of 250 MAD/m². Hotel projects located in a seaside resort in Tangier and its surrounding regions will be eligible for this subsidy.

*Financial incentives to improve the competitiveness of tourism SMEs

The Ministry of Tourism has implemented a mechanism to boost entrepreneurship among small and medium-sized businesses (SMEs) in the tourism sector and help them improve their competitiveness during both the start-up and growth phases.

This mechanism aims to support SME businesses in developing tourism projects or activities.

*The privileged geographical location of the city of Tangier

In addition to its tax advantages, the city of Tangier also stands out for its strategic location. Location is a major selection criterion when investing. While it's important to choose a property located in the city, the city's location itself will impact the profitability of your investment. Tangier's location is one of the key factors in its tourist appeal. Tourists seek out heavenly beaches with fine sand, greenery and parks, unusual landscapes, sunshine, the gulf, panoramic views, nighttime strolls, and cultural and historical sites—all of which are assets that Tangier can truly offer thanks to its two seafronts, overlooking the Atlantic and the Mediterranean.

The city of Tangier is located in the northwest of the country. It is bordered by the Mediterranean Sea and the Strait of Gibraltar to the north, the province of Larache to the south, Tetouan to the east, and the Atlantic Ocean to the west. The area of the Province of Tangier is 1,195 km² (including 332 km² for the prefecture of El Fahs - Béni Makada, created in April 1997).

It has been a trading port since ancient times, primarily due to its location as the gateway to the African continent. It is called the "Gateway to Africa" due to its strategic position in the Strait of Gibraltar, where the Mediterranean and Atlantic seas meet, separating the African and European continents.

Located in northern Morocco, the city of Tangier is practically at the gateway to Europe. It is this ease of access that explains the influx of European tourists to this city. Of course, that's not all, because if you decide to visit Tangier, it's also for the wonders it contains, in terms of architecture and urban planning, atmosphere and entertainment, but also its magnificent beaches. Whether the visitor is planning a discovery vacation, a relaxing vacation, or a wellness vacation, Tangier will meet their needs, even the most demanding.

The 3rd investment idea: Creation of a private tourist transport company

Tourist transportation in Morocco is an integral part of the tourism industry. A good transportation system is essential for tourists to enjoy various tourist attractions. It is generally accepted that tourism thrives when there are better transportation systems.

Tangier offers enormous potential for investors in the private tourist transport sector. It's a growing market with a high demand for private tourist transport services. Are you thinking about starting a tourist transport business in Tangier but don't know where to begin? Are you wondering about the prerequisites for opening your tourist transport business and the advantages of the city of Tangier to help you launch your project? Below, we'll explore investment opportunities in the tourist transport sector and how to take advantage of the assets of Morocco's charming city on the Strait of Gibraltar.

The advantages of tourist transport compared to other modes of transport

When traveling or staying in Morocco or Tangier, the best option for your travels, for greater comfort, economy, and safety, is to secure private tourist transportation. This is the ideal means of transport for travelers who want maximum freedom and independence.

Private tourist transport will also allow you to easily access certain tourist sites in Morocco that public transport does not serve.

Private transportation is an attractive option in Morocco, especially for tourists. It operates without pre-determined departure and arrival times, offering greater freedom and flexibility.

If you want to enter Morocco with your own car, you will need to board a ferry to cross the Strait of Gibraltar.

Once you drive on Moroccan soil with your own car, it is recommended to take extreme precautions, as the driving style is different and the signs are in different languages from other countries.

Renting a car is a more expensive option than public transportation in Morocco and will require you to plan your route in advance to ensure you reach your destination safely. However, just like traveling in your own vehicle, it can also simplify longer journeys, which are often lengthened by the number of stops or difficult to complete using local means, as they involve numerous changes of direction and waiting times.

Chauffeur-driven car services in Morocco operate much like those in any other country in the world. This means that it involves a private vehicle with a professional driver, rented for a specific period of time, with a predetermined route and conditions (mileage, driving hours, intermediate cities, etc.).

A car with a driver in Morocco offers many advantages over other modes of transportation (train, bus, plane, regular taxi, and self-drive cars). The first and most obvious is comfort: finding the most convenient route, finding parking, driving according to local customs, asking questions, etc. All occupants of the vehicle will enjoy their trip across Moroccan lands in equal conditions.

But what many travelers appreciate most is the freedom. Although this service is contracted based on duration and itinerary conditions, it is actually very flexible and allows for changes. Arrival at one destination can be delayed to extend the stay at another, the itinerary can be changed to pass through an unplanned location, etc.

A chauffeur-driven car in Morocco allows you to admire the landscape through the window, appreciating how the environment changes as the vehicle gains altitude in the Atlas Mountains. You'll admire, without worrying about anything else, the Atlantic coast or the Mediterranean Sea, the deep valleys of the country, the lively and colorful streets. Not to mention the fascinating sunsets or starry nights that can be photographed during a stopover along the way, whenever and wherever the clients wish.

Equally interesting is the valuable "on-the-ground" information that the driver can offer customers. While city and cultural tours are usually offered by official local guides, the driver can answer the car occupants' questions and address any concerns they may have during the trip. Anecdotes, brief historical reviews, practical advice, and useful information about monuments, restaurants, etc. are all provided.

t's also important to note the importance of traveling in an air-conditioned vehicle, which is far from trivial. Although other means of transportation have greatly improved in this regard, it's still possible to encounter unpleasant surprises, for example on low-cost buses.... But this doesn't happen in a chauffeur-driven car in Morocco, where you can adjust the temperature to suit your needs.

The advantages of the city of Tangier for a tourist transport business project

The city of Tangier is an excellent choice for a tourist transport business project in Morocco. It boasts several attractive assets for this sector, including:

Strategic geographical location: Located at the intersection of Europe and Africa, Tangier benefits from its proximity to Spain via the Strait of Gibraltar. This attracts many European tourists and makes it a privileged gateway for international tourism in Morocco.

Modern Infrastructure: Tangier has a modern port (the Port of Tangier Med), one of the largest in Africa, as well as a high-speed train (TGV) station connecting Tangier to Casablanca. These infrastructures facilitate the arrival of tourists and their travel within the region.

Cultural and Natural Richness: The Tangier-Tetouan region offers a variety of tourist attractions, including the beaches of the Atlantic and Mediterranean coasts, the historic medina of Tangier, and natural sites such as the Caves of Hercules and Cape Spartel. This makes the demand for excursions and guided tours high.

Economic dynamism: Tangier is experiencing economic growth thanks to its industrial zones and port activity, which contributes to the increase in demand for transport services, both for tourists and business travelers.

Tourist Influx: With continued investment in the tourism sector, Tangier welcomes an increasing number of visitors each year. Local authorities are encouraging the development of tourism infrastructure and services to support this influx.

Other specific advantages for a tourist transport company in Tangier can also be cited:

Diversity of services: A tourist transport company in Tangier could offer a variety of services, such as guided tours of the city, excursions in the region (Tetouan, Chefchaouen, Asilah, etc.), stays, walks, tours, etc.

It can also provide its customers with a wide range of adapted and equipped vehicles (minibuses with 7 to 20 seats) to guarantee comfort, safety and absolute peace of mind.

Additionally, clients can choose their mode of transportation based on the number of participants and their destination. It offers its clients transportation expertise and a team of experienced drivers who will listen to their needs and provide valuable advice.

Other services:

Airport transfers :

The airport transfer service provides transportation between the airport and your final destination.

Personalized welcome at the airport :

All types of vehicles for optimal comfort.

Baggage assistance.

Punctuality and reliability guaranteed.

Available 24/7 to meet all customer airport transportation needs.

Tourist Transfers :

Discovery transfers allow guests to explore the city and region with their families, exploring tourist sites and visiting local attractions.

Customized itineraries to suit the interests of the entire family/friends.

Spacious vehicles suitable for families with children.

On-board entertainment options to make the journey enjoyable for everyone.

Flexibility to accommodate schedules and preferences.

Business Transfers :

Our business transfer service meets the needs of business travelers.

Fast and efficient transfers between meeting venues, hotels, and other points of interest.

Luxury vehicles equipped to allow clients to work on the go.

Confidentiality and professionalism guaranteed.

Provision with Driver:

The chauffeur-driven service offers complete flexibility for guests' transportation during their stay.

A dedicated driver is available to guests for the duration of their stay.

The itinerary can be customized to suit their preferences.

Comfort and peace of mind throughout the journey.

Service available for business or personal needs.

Proximity to European markets :
The proximity to Europe facilitates the development of partnerships with European travel agencies to attract even more customers.
In short, Tangier offers favorable conditions for a tourist transport business project, with a diverse clientele and support for local tourism development.

Conditions for exercising tourist transport activities in Morocco

Tourist transport in Morocco is subject to strict licensing requirements. Companies wishing to operate in the tourist transport sector must obtain approval or authorization issued by the Ministry of Tourism in collaboration with the Ministry of Transport. This ensures customer safety and the quality of services offered to tourists.

Types of authorizations :

Tourist transportation in Morocco includes several categories:

-Tourist transportation by coach: for organized trips, excursions, etc.

-Tourist transportation by minibus or light vehicle: for smaller groups or families.

-Car rental with driver: specifically for tourist transportation.

Conditions and requirements

To obtain this authorization, the company must:

-Meet qualification criteria (have a fleet of suitable vehicles, hire qualified drivers, etc.),

-Comply with safety and maintenance standards,

-Adhere to insurance requirements.

These authorizations are issued for a limited period and must be renewed periodically. In addition, use of the authorization is monitored through regular inspections to ensure compliance with regulatory requirements.