How Do Foreigners Lose Their Investment in Mexico?

Posted by Mexlaw

Foreigners investing in Mexican property need to follow the legal process in order to protect their investment. When you hear reports of a foreigner losing their life savings and getting caught up in a legal battle over the property in Mexico, understand that this situation is entirely avoidable. If you buy real estate through the correct channels and use a Mexican lawyer during your purchase, buying property in Mexico, it is a safe and secure investment. These are a few grave mistakes foreigners make when it comes to buying real estate; They bought the property from someone who is not the legal owner....

10 February

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Residency in Mexico and Abuse of the FMM – Visitor Card

Posted by Mexlaw

in Immigration, MexLaw

It is relatively common for foreigners to take advantage of the visitor card - FMM (Forma Migratoria Múltiple) as a way to live in Mexico. Many foreigners are entering as a tourist and staying the 180 days granted to visitors and then leaving the country and returning for another 180 days, rather than applying for a residency permit. For a few years, there have been rumors that Instituto Nacional de Migración - INM will begin to crack down on this practice and regulate the use of an FMM as a way to live in Mexico. It started with some foreigners receiving...

10 February

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Q&A About the Fideicomiso in Mexico

Posted by Mexlaw

in MexLaw, Real Estate

There are two options for foreigners who want to purchase Mexican property within the restricted zone (100 km of any national border and within 50 km from the coast) either through a Mexican corporation or by obtaining a fideicomiso. The fideicomiso is a trust held by the bank, which provides the buyer with all the benefits of direct ownership. Is the fideicomiso a lease? No, although the term of the trust is 50-year increments, it can be renewed indefinitely. Should I choose one of the larger banks to set up my fideicomiso? No, not necessarily. Since the fideicomiso is not a big part of their...

05 February

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An Important Update About Real Estate Acquisition Tax

Posted by Mexlaw

in MexLaw, Real Estate

Purchasing property in Mexico, like any other country, is associated with added expenses during closing. One of the added costs you should anticipate is the acquisition tax, also known as a transfer tax. Up until this year, the acquisition tax in Playa del Carmen was only 2%, but as of January 2020, the Impuesto Sobre Adquisiciones de Bienes Inmuebles (acquisition tax) has increased from 2% to 3%. The tax will be calculated at 3% of the assessed value of the property at the time of purchase and is the responsibility of the buyer. This increase affects real estate transactions in Playa del Carmen...

22 January

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Power of Attorney in Mexico

Posted by Mexlaw

in Legal Services, MexLaw

Power of Attorney- POA in Mexico, like other countries around the world, can be established by granting one or several people sufficient authorization to represent you in one or more acts to be held in Mexico. We recommend that a POA be tailored to whatever your intentions are in Mexico; these can be divided into: Powers of Ownership - Performing acts related to Real Estate. Banking Powers - Performing all kinds of acts related to opening and managing bank accounts. Administration Power - This power will be used for all types of procedures related to any public administration body and even...