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Buying Mexican Real Estate – Some Common Real Estate Terms

Closing Date The closing date or completion date is the day the property is transfer to the buyer, and the title deed is signed. Condominium Regime This document granted by a Notario Publico and recorded in the Public Property Registry. It contains all the rules and regulations for the development as well as legal matters regarding the complex. The buyers will not receive the title until the regime is registered. Notario Publico A Notario Publico is a licensed attorney, certified, and appointed by the government. The notario acts as an official representative of all parties of the transaction. They do not represent only you; you...

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How Do Foreigners Lose Their Investment in Mexico?

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....

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Q&A About the Fideicomiso in Mexico

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...

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An Important Update About Real Estate Acquisition Tax

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...

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Predial – Tax Time for Property Owners in Mexico

Purchasing a new house in Mexico? Do not forget the impuesto predial, Mexico’s annual property tax.  SAT - Servicio de Administración Tributaria, also known as The Hacienda, collects the Federal taxes in Mexico. Foreigners should be aware, unlike some countries where the property tax is included and paid by your mortgage company or bank, in Mexico, you are responsible for the property tax at the beginning of each year. You will not receive a bill in the mail; you must make a calendar note to remind yourself of this obligation. Review the invoice at the municipality or online. Confirm that the property location...

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