08 December

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Real Estate Purchase and a Bank Trust Assignment of Rights

Posted by Mexlaw

Foreigners buying property in the restricted zone of Mexico are required to purchase through a (fideicomiso) bank trust. In some cases, the buyer will take over an existing bank trust. This is known as an Assignment of Rights (Cesion de Derechos) and depending on the amount of time left on the existing trust, you may be advised as the buyer to take over the trust rather than pay set-up costs to create a new trust. In order to create a new trust, there will be added fees and the cost of extinguishing the current trust. Anytime a person accepts to carry...

08 December

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Take Advantage of Discounted Property Taxes (Impuesto Predial)

Posted by Mexlaw

in MexLaw, Real Estate

By owning property in Mexico, you already enjoy a lower cost of maintenance and taxes, but did you know you may take advantage of further discounts by prepaying your Impuesto Predial? January is tax time for property owners in Mexico; property tax Impuesto Predial is calculated in the first two months of the year. Discounts are available if you pay your property tax in full before the due date. The percentage of the discount may vary from state to state and from year to year, ranging from a 5% to 20% discount depending on when you pay your taxes. In Quintana...

29 November

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Your Domestic Staff and the Aguinaldo Deadline

Posted by Mexlaw

in Accounting, MexLaw

The holiday season is quickly approaching, and if you have employees, you need to be aware of the annual bonus all workers are entitled to during the month of December. What is aguinaldo? An annual Christmas bonus that employers in Mexico are required by law to pay to their employees, and it must be paid by December 20. Aguinaldo is separate from vacation pay and it benefits families for the added expenses that come with the holiday season. Article 87 Federal Labor Law states that all employees in Mexico will be entitled to an annual bonus. Not only business owners need to provide...

29 November

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Validating Concubinato Status (Common Law Marriage) in Mexico

Posted by Mexlaw

in Legal Services, MexLaw

Many couples forgo a legal marriage and are living together as husband and wife without the religious or legal formality. Your relationship status may not be of great importance in your day-to-day life, but once you begin accumulating assets as a couple, terminate the relationship or if one partner passes away, then the legal status of your relationship comes into play. If you are in a common law relationship, you need to understand how to protect yourself and your partner in these scenarios. The term concubinato relationship is Mexico’s version of common law marriage, although the word concubinato is similar...

29 November

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The Most Desired Property in Mexico can be Found in the Restricted Zone.

Posted by Mexlaw

in Immigration, MexLaw, Real Estate

Beachfront property is the most desired land in Mexico; this type of property is considered the restricted zone. Owning the most valuable property in Mexico is not out of reach for foreigners, but there are some extra procedures to complete in order to obtain it. The restricted zones are defined as the strip of land located 100 kilometers along the borders and 50 kilometers from the coast of the national territory, within which foreigners and foreign companies are impeded in absolute terms from acquiring direct control over land, waters and their entry points, for reasons of security and conservation of...

15 November

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Details of a Bank Trust for Property Purchased in the Restricted Zone (Fideicomiso en Zona Restringida)

Posted by Mexlaw

in Legal Services, MexLaw, Real Estate

As a foreigner purchasing property in the restricted zone, you will be required to purchase through a bank trust called a fideicomiso. The bank trust was created in order to comply with the provisions of Article 27 of the Mexican Constitution in which foreigners are limited from acquiring direct title of lands or waters within a range of 100 kilometers from any national border and within 50 kilometers from any coast, these areas are called restricted zones. The bank is the owner of the property. However, the beneficiary has all rights over the property, and the rights allow you to: sell,...

15 November

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Understanding the Process of Being Accused of a Crime in Mexico

Posted by Mexlaw

in Legal Services, MexLaw

As a traveler or an expat living in a foreign country, you need to be aware of the laws and the legal procedures of that state. Being accused of a crime in a foreign country can be a frightening and costly experience, and it becomes even more worrisome when you do not know the process or the rights that are available to you. If you are arrested, the state will assign a public defender if you can not afford a lawyer. However, having a private defense lawyer is of great importance, since you may face criminal charges in which your...

15 November

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ONGOING TRAINING AND DEVELOPMENT AT MEXLAW AND MEXTAX

Posted by Mexlaw

in MexLaw

To be reliable and competent, professionals must continue to enhance their education and not rely exclusively on personal experiences. Everywhere else in North America, professionals such as lawyers and accountants must maintain current knowledge of the law and accounting rules to better advise and serve their clients. MexLaw and MexTax observe this international principle by requiring that lawyers and accountants on their team must complete a minimum of 30 hours per year of advanced training or refresh their knowledge to better serve our clients. We would like to congratulate those members of our team, pictured above, that recently dedicated 15 hours...

09 November

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5 Most Important Points to Review in a Promissory Agreement

Posted by Mexlaw

in Legal Services, MexLaw, Real Estate

Once an offer to purchase has been accepted, the next step is to complete a promissory agreement. The promissory agreement in Mexico is a formal and legally binding document that outlines the details and terms of the real estate transaction once all negotiations are final. It outlines details such as the legal description of the property, the final price, any penalties and other clauses agreed on by both parties. This agreement is the foundation of the transaction as the details of this contract will be used later to complete the sale and transfer the Title Deed. In the process of purchasing...

06 November

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LAWYERS VERSUS CLOSING COMPANIES

Posted by Mexlaw

in Legal Services, MexLaw, Real Estate

Although they have been around for some time, closing companies are now becoming more and more prevalent. Essentially, these closing companies or “settlement” companies, are operated by ex-patriots that believe that, because they have experienced firsthand the process of purchasing real estate in Mexico, they can advise and consult others on the process. For a fixed fee, they will read the offer provided by a realtor, make some comments, and then introduce you to a preselected notary and bank to finalize the process. They will, essentially, transfer the most critical part of the process to the notary and the bank...

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