Margreid in the Bozner Unterland region has a border with the province of Trentino in the southwest. The village is situated at the foot of the Fennberg (part of the Mendel Mountain Range) on the fan of the Fenner Torrent. Margreid includes the scattered village of Unterfennberg further up the mountain. The village, with its old lanes with mansions and farmhouses from the Late Gothic and Renaissance period, gains most of its income from the cultivation of fruit trees and wine. This is clearly indicated by the cooperative of the fruit farmers and two wine cellars. The orchards are situated in the wide bottom of the Etschtal, the vineyards grow on the sunny slopes. Even though some small businesses are located in the village, most of the working people have to commute.