Thanks for sharing that Lurcher21.

Please name the development that will have the social housing and name and shame the Estate Agents that didn’t want to know.

They are certainly not inefficient or incompetent when it comes to stealing your money and charging you taxes on funds you have never had. We went with the intention of selling the villa and buying a smaller apartment - but we have been completely discouraged by what has happened - and in any case by the time they have finished taking our money I don't think we will be left with sufficient funds to buy an apartment! We will keep you informed on the outcome of the funds transfer matter when we go back in the Autumn.
We actually got advice from the British Consulate whilst over there - and were put in contact with the lawyer who looks after their interests in Morocco. He advised us to try to negotiate a reduction in the TPI but said there was nothing more we could do. The tax office will increase the amount of TPI due MONTHLY, they say, because of the soaring property prices, as each month the house is worth more. It is so unjust. Even the purchasers of our villa now face a much increased tax liability due to the higher valuation.
If anything, I reckon things are getting worse over there (with regard to bureaucracy, corruption, dishonesty etc) not better. The bubble has to burst. Who knows, maybe in the end we will have had a lucky escape by selling when we did.

Lurcher
I reckon things are getting worse over there (with regard to bureaucracy, corruption, dishonesty etc)

With money in the system the above comes. Morocco has to ensure that matters dealt in this manner has to be a thing of the past.

By the way did you try and resolve the matter with the Tax man in the Moroccan manner ??????

Ive lost count of the number of TV reports that cover bad property outomces in France and Spain. Morocco will be no different, just a case of taking as much care as possible when investing.

It's difficult to get a handle on your story Lurcher. In my job I meet people all the time that tell me the UK has gone potty as they have had some debarcle with the revenue here where they consider themselves a totaly innocent party caught in the revenues jaws.

Good luck

__________________
Been investing abroad a few years. Always amazed people invest in places that produce just a few months rent per year

Actually we will be able to outline it all in more detail once the whole matter is sorted out and we find out what, if any, funds they will allow us to have!

Regarding the capital gains tax (TPI) - Correct me if I am wrong, but I don't know of any European tax system which taxes ALL home sellers - even on the sale of their principal residence. The UK has a very favourable capital gains tax policy, even more favourable than in France, as there are allowances which can be offset against the tax due. Nor do I know of any country which charges tax on non-existent profits! They are virtually saying ''You are dishonest. You are lying about the price you sold your property for so we will charge you on the profits we say you have made.''

lurcher21

Thank you for taking the time to outline the problems you have had. It may not be of any comfort to you but information like that on emerging markets is really useful to those of us that are, or thinking of investing in the area.

I am hoping that my investment on a large development will have some of these pitfalls covered already but we shall wait and see.

I hope you get as much cash out of your property as you can and thanks again for the info.

MP

It's the new development/town of Tamesna, near Temara, Rabat. The British agent contacted me through the RightMove website in the UK. I may still have her details in my inbox - I will look later. I actually complained to the organisers of RightMove too - as they were advertising apartments near Tangiers at ridicuously low prices, then when I asked for details, I was contacted by several agents - all of whom quoted vastly higher prices than on Rightmove. The response from RightMove was that they would investigate. Still haven't heard from them again and don't suppose I will considering it's the advertisers who pay them!

http://www.youtube.com/v/nIk-MG0sqic&hl=en

The above is an interesting report on buying properties in Saidia.