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...