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Tax increase in Saidia

Discussion in 'Morocco Property' started by Nasjeh, Jan 5, 2008.

  1. Nasjeh

    Nasjeh New Member

    I bought a villa from Fadesa in V2 back in March 2005. The original completion date was June 2005. After long delay I received a phone call from Fadesa on 28th Dec saying that from January 1st 2008. the tax sales rate will increase from the original 14% to 20% and this will affect all buyers who have not completed their purchase yet . To no avail I tried explaining that I have a initial contract which clearly states the purchase price and the tax however their answer was that this decision was taken by The Moroccan government. Has any body else been informed by their agents about this tax increase and any suggestions how to deal with it
     
    Last edited by a moderator: Jan 5, 2008
  2. javedkhan54

    javedkhan54 New Member

    Once you've put a deposit down, they should absorb any tax rises and not you (unless they have excluded that in the ts and cs)... I had this problem with some developers who would not provide detailed ts and cs covering all the standard eventualities that are expected in property development - cowboys!
     
  3. Investy

    Investy Senior Member

    Is this Tax rise confirmed, I have'nt heard a thing?
     
  4. Nasjeh

    Nasjeh New Member

    I contaced the real estate agent and they confirmed to me that the sales tax has gone up to 20%. According to Fadesa it will affect all people who did not complete their purchase yet.
     
  5. marsdei

    marsdei New Member

    B*stards!

    Yes, I too have just been informed by my solictor of this rise.
     
  6. Investy

    Investy Senior Member

    Thankfully for those of us who bought from Property Logic (Lejardindefleur), they have said they will absorb the Tax increase and not pass on to purchasers.
     
  7. redangel7861

    redangel7861 New Member

    Early indications of Fadesa's meeting with Govt officials look good (rumour has it). Unofficialy Fadesa will absorb the VAT increase for all reservations on their developments until a stipulated date in 2008, yet to be decided.
     
  8. Steve C

    Steve C New Member

    Oasis Morocco also confirmed to me today when I telephoned them that there will be no extra tax for those that have already bought.
     
  9. marsdei

    marsdei New Member

    (possibly) good news!

    After seeing Investy comment, I asked Azur Developments whether they were absorbing the tax increase and they said as I had exchanged contracts before 1st January 08 all indications are that the VAT will remain at 14% and therefore your purchase price will be unaffected.
     
  10. just-alex

    just-alex New Member

    TVA increase and pressure to sign

    Is it just me being cynical but could Fadesa's falling share price and financlial end of year of 31st December acount for the unprecedented levels of aggression and pressure to sign?
     
  11. killersrule

    killersrule New Member

    Vat Increase

    I have also ought through Property logic and have been informed that I will not have to pay the increase in Vat. :)
     
  12. Lee Filkins

    Lee Filkins Administrator Staff Member Premium Member

    subject

    Just Alex: The answer to your cynicism lies in my thread on Half Fadesa Assets
     
  13. exfcsm

    exfcsm New Member

    I am not really surprised that Fadesa have kept this 6% Tax increase under wraps - it would put people off buying don't you think ? Possibly ?

    Anyway, for those people that are going out soon to sign, in relation to the Clause 8 letters, if the properties are not to a sufficient standard by now for you to feel confident to sign for them - do you not think that Fadesa should be held responsible for the extra tax - as it is down to them that the delays have occcured - is it not ? For those people in AP6 for instance I am sure that Article 9 states that Fadesa were supposed to deliver the apartments 15 months after signature of contract - this obviously has not happened, can you not ask your solicitors if they should be held accountable ?

    Just a thought.
     
  14. Lee Filkins

    Lee Filkins Administrator Staff Member Premium Member

    subject

    Fadesa contract always states the prices without Taxes. From Fadesa point of view it suits them.

    In so far as other approach, Fadesa will just ignore your/your solicitors contact with them in which ever format.

    In Spain if you take them to the Courts they will demand that you complete otherwise its a breach of contract. The judges will give them the benefit as construction projects are invariably delayed. If this does not happen and you get the decision, they Fadesa will appeal, this is a very standard process applied in Spain to frustrate the buyer and make them spend good money after bad in legal fee.

    If you take them to Court in Morocco. I let you decide what can happen in terms of decision, your time and dare I saw the judges will be in their pocket.
     
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