Puerto Aventuras Remax Aventuras-, vacation rentals, real estate - properties for sale and for rent in Mexico in Puerto Adventures

Foreigners can, subject to certain restrictions, own land in Mexico--except in the "restricted zone,"
generally defined as within 100 kilometers (62 miles) of the border or 50 kilometers (31 miles) from the
coast. However, foreigners can acquire property in the restricted zone through a "fideicomiso," or through
a Mexican corporation.
What is a fideicomiso? To encourage foreign investment, the Mexican government created the
fideicomiso, a real estate trust agreement (not a lease) between a Mexican bank, a real estate seller and
buyer. The process is:

· The bank, acting as trustee for the buyer (also called the "beneficiary"), purchases the property
and holds the title,
· The buyer gets the basic rights of ownership, including benefits from the use and sale of the
property,
· Trusts usually last 50 years and are renewable.
Creating a fideicomiso is relatively straightforward. The requirements are:

· An initial fee, based on the property value,
· An annual trustee fee, and
· A permit from the Ministry of Foreign Affairs--usually arranged by the trustee/bank when the
fideicomiso is established.

THE TRANSACTION, PARTIES AND COSTS
Mexican real estate transactions ("operaciones") are different from those in the U.S. A buyer should have
professional assistance and, as brokers are not all legally licensed in Mexico, cannot depend on many
safeguards that apply in the U.S.

Making an Offer: The first step in purchasing property is usually an offer to purchase ("promesa de
compra"), typically a letter of intent drafted by the parties with basic information (property description,
price, terms of payment, etc.).

Notarios
One important participant in the transaction is the "Notario Publico," a special lawyer with quasi-judicial
functions (not the same as a "Notary Public" in the U.S.) The Notario Publico acts as government
representatives with fiduciary responsibilities to both parties and can do title searches, obtain "no lien"
certificates, secure official appraisals, verify that there are no unpaid taxes, and draft deeds.

Closing the Deal: Once the buyer accepts the promesa de compra, the closing process that follows,
which should include a thorough title search, usually takes 1-3 months during which a purchase-sales
agreement ("contrato de compraventa") is finalized.

Closing Costs: Closing costs are usually paid by the buyer and are generally higher in Mexico than the U.
S. However, property taxes, or "predial," are relatively low. Buyers customarily pay a transfer tax (2-6% of
the appraised value which is often less than the sales price) and notario publico's fees (2-3% of
appraised value) while the seller usually pays an agent's commission.

Taxes in Mexico

On July 1st 1997 SAT was created as an independent fiscal authority by Secretaria de Hacienda y Credito
Publico. SAT has the necessary authority and power to create rules for calculating and collecting federal
taxes.

What is SAT?
In the past Mexico did not have the resources or political will to enforce its tax laws. In fact, the country
has one of the lowest tax collections as a percentage of its GDP in Latin America and among the
member nations of the Organization of Economic Co-operation and Development.

Income Gain Taxes
Mexico taxes residents on worldwide income but allows foreign tax credits for any taxes paid outside of
Mexico. The U.S. and Canada also allow foreign tax credits. In effect, taxpayers pay taxes in both
countries, but receive offsetting tax credits. The net result is that taxpayers usually pay taxes equivalent to
the highest tax bracket between both countries.

If you have a bank account in Mexico that pays interest, the financial institution will withhold a small
percentage of your principal for income taxes. If you are not a resident, this will be your only income tax
and you will not need to file a Mexican tax return. If you are a resident, you can generally credit this
amount on your annual Mexican tax return.

Property Taxes
Property taxes on real estate in Mexico, called predial, are low compared to other parts of the world. You
may need to go to the local property tax office to request a bill.

Selling Property
Foreigners will face a capital gains bill when they sell Mexican real estate. If the property is not a principal
residence, the seller must pay taxes on the gain based on their marginal tax bracket. The notario, will
withhold a percentage of the gain and the taxpayer must pay the difference, or apply for a credit on their
annual tax return.

Homestead Tax Exemption
Owners of residential real estate in Mexico face steep capital gains taxes when they sell if they fail to
secure a tax exemption. The homestead exemption excludes the transfer of certain properties from taxes.
Confusion sometimes arises because some notarios believe the homestead exclusion is available only
to legal permanent residents, and they make their tax liability determination on the basis of immigration
law, not tax law.

If you do not qualify for tax exemption, request that your attorney or real estate agent help you figure out
which option is best for you. Your attorney should obtain an estimated tax bill before you decide to list
your property for sale. At closing, the notary issuing the deed will also calculate and collect all applicable
taxes, including transfer tax, property registration tax and capital gains tax.

What Constitutes "Legal Residency" in Mexico?
Legal permanent residence is granted pursuant to Article 48 of the General Population Law and is
evidenced by possession of an FM-2 visa. Temporary visitors on an FM-3 visa pursuant to Article 42, or
on a tourist visa, are not considered legal residents. In fact, the FM-3 document specifically states that
the holder does not automatically acquire residency by merely holding the visa.

Building a Case for an Exemption
Notarios review a sellers "fact pattern" before deciding if the seller qualifies for a homestead tax
exemption when selling a Mexican residence. To increase your chances of obtaining a homestead
exemption:

Obtain an FM-2 visa to establish legal and permanent residence. Some notarios will grant
holders of an FM-3 visa a homestead exemption but you will gain more credibility as a legal
resident with the FM-2. Most notarios will allow the tax exemption if you hold an FM-2.
Obtain a Mexican tax identification number, known as RFC, to show that you take your tax
responsibilities seriously.
Open a Mexican bank account that pays interest. The bank will withhold income taxes on your
behalf, making you a taxpayer.
Live in your home for at least six months. While there is no time requirement to establish tax
residence, often notarios will want to see at least six months of continued residence at the house.
Make sure utility bills are in the name of the person who holds title to the property. If the property is
owned jointly, try to obtain at least one utility bill in both names. Gather at least six months of
these utility bills as documentation.
Make sure that the address of the property is exactly the same as the address listed on your FM-3
or FM-2.

Vehicle Taxes
The tax on vehicles with Mexican plates, tenencia, is often more than the real estate property tax bill!
Depending on where you live, you may need to go to the corresponding local office to ask for the bill.

This is a yearly payment, but if your vehicle its more than 10 years old, you are exempt from paying this
tax.

Sales
Mexico has a value added tax that is applied to most products and services. It is 15 percent in most of the
country and 11 percent in border areas.

Rental Income
Rental income generated in Mexico is taxed at regular income tax rates, after deducting actual expenses
or a blind deduction of 35 percent, whichever is greater. This provision applies to residents. Non-
residents pay a flat 25 percent on the gross income. Both residents and non-residents may be required
to charge valued added taxes and may also need to charge a 2 percent hotel tax, depending on the
circumstances. While it has been relatively easy to avoid taxes on Mexican rental income, some
jurisdictions are cracking down on those who are not paying income taxes on rental revenues.

Mexico condos for Rent |Puerto Aventuras Mexico properties for sale |http://www.remaxaventuras.com
Re/Max Aventuras real estate and vacation rentals in Puerto Aventuras Mexico,Puerto Aventuras Mexico Real Estate properties and estate,Mayan Riviera Mexico, www.puertoaventurasrentas.com
Copyrights reserved Re/max Aventuras, Puerto Aventuras Mexico 2007

Each RE/MAX Office is independently owned and operated
Copyright 2009, RE/MAX Aventuras.

Maricarmen Guillen
Owner/Broker
mguillen@remax.net

Aventuras

Through a trust(fideicomiso)the only legal instrument and the most advantageous available,foreigners can acquire land in Mexico for residential or touristic purposes, having the samerights and obligations that a full ownership property gives.

In Mexico, a Trust Institution is that banking institution which is authorized to open fiduciary accounts and conduct trust operations. The Trustee (bank institution) holds legal title to the real estate property during the term of the trust.

In the trust deed, the present owner of the land would appear as the settler or trustor (fideicomitente) and would thereby deliver title of the real estate to the trustee (you)who would hold the property during the life of the trust, 50 years.

As the Trust Beneficiary, you will have the use and possession of the property, that is, you also have the capacity to instruct the Trustee on mortgaging the real estate, renting , selling,or transferring .

According to article 13 of this Law,; the Foreign Affairs Ministry shall allow the renewal of trusts over the restricted zones upon expiration of their term (up to 50 years)

Bedrooms : 2
Bathrooms : 2.5
Sq. Ft. : 1350
Location :
Villas del Mar
View: Beach
$598,000 US

Bedrooms : 2-3
Bathrooms : 2
Sq. Ft. : 1450
Location :
Chac Hal Al
View: Beach
$500,000 US

Bedrooms : 3
Bathrooms : 3
Sq. Ft. : 1450
Location : Chac Hal Al
View: Beach
$795,000 Us dlls

Bedrooms : 1
Bathrooms : 1
Sq. Ft. : 925sqft
Location : Center
View: Dolphins
$175,000 Us dlls

Send me more information

Name:

E-Mail:

Phone:

Comments:

Maricarmen Guillen
Owner/Broker
mguillen@remax.net

Thank you , for considering us as
your Real Estate Team! We work
to make your real estate
transaction as smooth as
possible!
We will assist you through the
entire process, assisting you on
today's market. We want to earn
your business, not just now, we
want to be your Realtors for Life.
We pride ourselves on Quality
not Quantity.
.

JSwitch Slide Menu

Property Management