Camel.

Thank you for the reply, so in summary 10% will be applied to the interest rate charged by the bank.

Are you aware of the VAT that will be charged to rental income (will it be the set 20%)???

Thanks
Red

" so in summary 10% will be applied to the interest rate charged by the bank.

Yes, that is what it is.

Are you aware of the VAT that will be charged to rental income (will it be the set 20%)???

Before latest changes the VAT applied on rentals was 10%. Not only the rent will be VATABLE. you will also have to pay VAT on Agents fee, cleaning etc.

The problem is that people do not do enough research, one has to not only look at the developer, planning papers, location, distance from the Airport motorway, the taxes, bank opening/closing cost. I can go on. Research is like a piece of string.

Camel.

Point taken - BB's like these are always a good source of information. I was aware that VAT would be charged on all other services and have discounted for that. Even with the increase in VAT of 6% I still believe there is a substancial profit to be made in Morocco in the following 5-7 years and am proceeding with all my investments.

Again, thanks for the info you have provided.

Red

I am not sure about your projection. I feel Morocco is for people who already hold a portfolio with substantial equity.

Its, OK for diversification in terms of say, having a high risk property/Country in ones portfolio or look at the % game of say, having 10% or 20% as high, medium or low risk of your asset value.

Unbelieveable that you are discussing the fact wether Tangiers is a safe or profitable investment for investors. I am an agent myself and have good developers in Tangiers who are friends/relatives, I have clients bringing me clients from all over the world who want to invest, but don't have the right information because the best developers are the local developers because they know the market, they offer relative cheaper luxury appartments/ villa's than other developers. And not to forget they offer good legal guarantees signed on paper.
And about taxes, I think you must do some better research please do so. I quote: Morocco property is currently one of the world's leading emerging markets for investment abroad.
Said by a well known investcorporation