An Important Update About Real Estate Acquisition Tax

Posted by Mexlaw

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...

04 December

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Rent to Own – A Transaction Agreement

Posted by Mexlaw

in Legal Services, MexLaw, Real Estate

If you are selling your property in Mexico, you may get an excellent offer from a buyer looking for a rent to own situation. The potential buyer may want to live on the property while making substantial payments. How do you protect your investment and not waste time and money if the buyer defaults? You will need to take extra precautions to protect your interests. We recommend you hire a Mexican lawyer to draw up or at least review any legal agreement you make to ensure you and your investments are fully protected. What type of agreement will protect the potential buyer...

20 November

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Mexican Real Estate – Benefits of the Fideicomiso

Posted by Mexlaw

in Legal Services, MexLaw, Real Estate

Obviously, it would be easier and less expensive if you could hold a direct title to your Mexican property. However, the Mexican Constitution states foreigners can not own property within the restricted zone; the fideicomiso is the safest workaround for purchasing this type of property. The primary purpose of a fideicomiso is to satisfy the Mexican Constitution by bestowing the legal title of the property in the name of the trustee. The trustee’s responsibility is to hold and transfer title deed under the direction of the beneficiary (buyer). The Benefits of a Fideicomiso It allows foreigners to purchase real estate within the...

18 July

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8 Reasons to Hire an Architect in Mexico

Posted by Mexlaw

in MexLaw, Real Estate

Whether you are renovating, restoring, or building a new structure, you should consider hiring an architect. The architect's job is to bring your vision to life, but there are many other aspects of their profession. Architects are professionally educated and have the experience to create and execute a beautifully functional design, optimizing the space, and ensuring the safety of its occupants. Dealing with permits and licenses in Mexico can be a challenge your architect will obtain the necessary permits and ensure your project is carried out legally, avoiding issues with the government agencies, fines, or work stoppage. They have...

22 May

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Airbnb Guests – A Captive Audience for Additional Revenue

Posted by Mexlaw

in Immigration, MexLaw, Real Estate

Renting your Mexican property out privately or through platforms such as Airbnb can provide a significant income, plus you have the opportunity to increase your revenue by providing additional services to your guests. Your guests are a captive audience who are usually looking for many of these services; you may as well be the one to provide them. Your guests will be impressed, which also means positive reviews and return visits. If you live in the area you have probably made some great contacts who can assist you with these services; it may be time to network to put these ideas...