Get Here Sooner by Investing in a Mexican B&B
How do you escape the rat race, and give up working long days and dreaded commutes? Most people work hard all week and struggle to make ends meet, waiting all year for that one vacation in Mexico to get away and unwind.
What if that vacation in Mexico was actually your life?
Foreigners who are not financially ready to retire but are ready to enjoy life are investing in a rental property or home big enough to operate a B&B. Get a jump start on your retirement life while the rental income supplements your income.
Expats living in Mexico are enjoying an income and better quality of life by owning rental condominiums or running a B&B on their Mexican property. If you love meeting new people from all over the world and dream of living in Mexico, this could be your answer.
Owning a B&B takes a particular lifestyle, it is not for everyone, but people who love people will enjoy it. Providing exceptional hospitality ensures repeat business, and many people have developed long time friendships during a B&B stay. Cleaning and maintenance services are very reliable and affordable in Mexico leaving you free to enjoy your life.
Get Started
Choose a property tourists would appreciate. A B&B can command a higher rate if it is close to the action, shopping and the beach although it can be a difficult task to find a central location that is quiet enough for your guests to relax and enjoy their stay. Find the happy medium. Although property is much less expensive off the beaten track and far from the beach, you may lose business if it is not a convenient location.
Get Legal Advice
Consult a reputable lawyer in Mexico, discuss the pros and cons of forming a corporation in Mexico they will guide you with the best options for you as a property owner and possible landlord in Mexico.
By creating a Mexican corporation, you can legally purchase real estate within the restricted zone (50 kilometers from the coast and 100 kilometers from the border) without a fideicomiso (bank trust).
Once you have decided on the property, the lawyer will ensure there are proper zoning and beach permits, guide you through the tax obligations, perform due diligence on the property, assist with the contract and closing of the sale, with guaranteed title deed on the property.
Get Accounting Advice
Do not make the mistake of assuming since the guest’s payment is deposited to your bank account in your home country you do not need to pay tax in Mexico; this is not so. Any income earned in Mexico is subject to tax in Mexico. Property owners who ignore the tax laws may lose their rights as a property owner, face possible jail time, fines, and possible deportation from Mexico. Professional tax accounts can advise you on Mexican tax laws, reporting obligations and find opportunities to lower your taxes.
Get Insurance
It is imperative you, your property and your guests are protected. The policy should protect you from liability if a guest is injured. Inquire about loss of income protection in the event the property is damaged, and you can not accept guests.
Contact an attorney at contact@mexlaw.ca we can also connect you with reputable real estate agents, accountants, immigration specialists and insurance brokers.