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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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Mexican Real Estate – Benefits of the Fideicomiso

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...

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Top 8 Reasons Foreigners Purchasing Real Estate in Mexico Hire a Lawyer

Red Tape There are several procedures to complete, information to verify, and the process may be intimidating if you do not speak Spanish or have the proper representation. Your lawyer will deal with the various government agencies so you can avoid all the red tape, including, obtain the current cadastral (property survey) and submit the permit to the Mexican Ministry of Foreign Affairs. Coordinate the parties involved in the transaction, make arrangements with the banks, notary, and the seller. Only in Your Best Interest The notario is an experienced lawyer licensed by the Federal Government and the State, but the notario is...

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Quick Facts About Investing in Mexican Real Estate Through an IRA

Did you know you can increase returns on your pension savings by purchasing Mexican real estate through a self-directed IRA? The majority of us invest our pension automatically and do not pay attention to the rate of return that the plan is generating. With this alternative investment, you can take control of your retirement. U.S. citizens can increase returns on their investments by making the right choices and reduce fees and administrative costs payable to brokers and advisors. The IRS allows foreign real estate as an alternative investment; provided you follow the rules set out by the IRS, it is essential...

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The Basics of Condo Insurance for Expats Investing in Mexican Real Estate

Whether you are buying property in Mexico as a home or an investment, you have already discovered the high investment potential of Mexican real estate and will want to protect it. Some expats have put every cent they have into their new dream home and are looking forward to retiring in the warm weather. There are also expats who think of it as a business, buying one or more vacation rentals that create revenue while they are back home. As a property owner anywhere you need to purchase homeowners insurance to protect your investment, Mexico is no different. One difficulty expats experience...

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