Details of a Bank Trust for Property Purchased in the Restricted Zone (Fideicomiso en Zona Restringida)

Posted by Mexlaw

As a foreigner purchasing property in the restricted zone, you will be required to purchase through a bank trust called a fideicomiso. The bank trust was created in order to comply with the provisions of Article 27 of the Mexican Constitution in which foreigners are limited from acquiring direct title of lands or waters within a range of 100 kilometers from any national border and within 50 kilometers from any coast, these areas are called restricted zones. The bank is the owner of the property. However, the beneficiary has all rights over the property, and the rights allow you to: sell,...

09 November

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5 Most Important Points to Review in a Promissory Agreement

Posted by Mexlaw

in Legal Services, MexLaw, Real Estate

Once an offer to purchase has been accepted, the next step is to complete a promissory agreement. The promissory agreement in Mexico is a formal and legally binding document that outlines the details and terms of the real estate transaction once all negotiations are final. It outlines details such as the legal description of the property, the final price, any penalties and other clauses agreed on by both parties. This agreement is the foundation of the transaction as the details of this contract will be used later to complete the sale and transfer the Title Deed. In the process of purchasing...

06 November

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LAWYERS VERSUS CLOSING COMPANIES

Posted by Mexlaw

in Legal Services, MexLaw, Real Estate

Although they have been around for some time, closing companies are now becoming more and more prevalent. Essentially, these closing companies or “settlement” companies, are operated by ex-patriots that believe that, because they have experienced firsthand the process of purchasing real estate in Mexico, they can advise and consult others on the process. For a fixed fee, they will read the offer provided by a realtor, make some comments, and then introduce you to a preselected notary and bank to finalize the process. They will, essentially, transfer the most critical part of the process to the notary and the bank...

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...

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...