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Tax & Currency Issue

Discussion in 'Morocco Property' started by redangel7861, Jan 15, 2008.

  1. redangel7861

    redangel7861 New Member

    As an investor in Morocco two things are troubling:

    1. Increase in VAT by 6%

    2. The devaluation of the pound vs MAD

    Taking a 6% hit on VAT is bad enough but seeing the MAD now trading around 15 per pound (a drop of nearly 10% in the past few months) is making
    Morocco a less desirable place to invest for UK residents.

    Linking the MAD to the EUR, is in my opinion is a big mistake by the Government of Morocco. The EUR zone is a world economic power, where as Morocco is a developing nation, and does not deserve to have an appreciating currency against the pound.

    To lose up to 16 % of possible profit (years capital appreciation), will surely be putting new UK investors off Morocco. I have put down a fully refundable holding deposit for Atheana Golf in Saidia, but am seriously contemplating pulling outof the deal and getting my money back.

    I also have a 2 bed penthouse in Marrakech (Atlas Golf) - which I have no problems with, Marrakech is an established market that will continue to grow.

    Saidia will be a new market, hence more risky, coupled with the VAT hike and ccy MAD vs GBP drop, it is starting to look like a less desirable location to invest in.

    As ever, comments welcome
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