The Law of Hidden Defects in Mexico

Posted by Mexlaw

Hidden defects are an important point in the process of purchasing a property in Mexico. The definition of hidden defects is those possible defects that a property may have, which could not be known to the buyer at the time of purchase. A defect is classified as a "hidden defect" if: It is not obvious and cannot be recognized by a simple inspection. The buyer is unaware of the defect. The property was defective at the time of the sale. The seller is responsible for a hidden defect even if they were unaware of the defect. The seller will be obliged to repair...

24 October

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Foreigners and Tax Obligations in Mexico

Posted by Mexlaw

in Accounting, MexLaw

Whether you are an individual earning an income in Mexico, or a business owner in Mexico, you have certain income reporting and tax obligations. This article includes a brief description of the most common taxes and contributions, as well as the corresponding authority. As an employer in Mexico, you are responsible for the following contributions and taxes Payroll Tax 3% of the total salary of the employees is to be submitted monthly to the State Government. The Mexican Social Security Institute (IMSS) Instituto Mexicano del Seguro Social As an employer, you are obligated to pay IMSS for health services and...

24 October

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Making a Mark for Yourself in Mexico

Posted by Mexlaw

in Legal Services, MexLaw

Trademarks are those symbols or signs used to distinguish products or services in the market; they must be registered to identify them from the competition and to avoid confusion with other companies. By registering the trademark, businesses obtain multiple benefits such as exclusive use, which provides the certainty that the trademark may not be used legally by a third party without authorization. The registration of a trademark has a validity of 10 years from the moment of its application and may be renewed before or after the term expires. Trademarks registered in Mexico are only in effect within the Mexican Republic. However,...

13 October

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Risky Business: Extending a Tourist Card Through a Border Run

Posted by Mexlaw

in Immigration, MexLaw

Many foreigners living in Mexico enter as a tourist which typically grants them a 180 day stay. Once their 180-days is up, they leave Mexico and make a “border run.” For residents of the Riviera Maya, this may mean a quick trip to Belize in hopes of re-entering Mexico and gaining another 180-day visitors card. Although the act of leaving Mexico and returning later is not illegal, many times these border runs entail a bribe to the official on the other side making this an illegal and risky process. Mexican Immigration authorities also see this as an abuse of the...

06 September

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Formalized Tax Collection Through Airbnb in Quintana Roo

Posted by Mexlaw

in Accounting, MexLaw

Travelers have changed over the years; nowadays many people prefer to stay in homes rather than large resorts. Airbnb has become a popular choice, an intimate, less expensive way to travel and see the world. Many travelers make lasting connections in these homes and neighborhoods and experience more culture than they would if they were staying at a large resort. Airbnb’s popularity continues to grow and because of its success has triggered concern from the hotel industry regarding tax obligations and the lack of regulations for this type of accommodation. The Mexican government also recognizes the importance of home sharing for...