Buying Real Estate In Mexico
Purchasing a property in Mexico, whether it be a vacation home or an investment property, should be pleasant and stress-free. PlayaHere Real Estate is available to assist you at every step of the way. Because we care about every transaction, big or small, you can be confident that you will be well guided.
CAN I OWN PROPERTY IN MEXICO AS A FOREIGNER?
CAN I OWN PROPERTY IN MEXICO AS A FOREIGNER?
Yes! The procedure for foreigners purchasing property in Mexico is simple, safe, and created with your protection in mind.
HOW CAN A FOREIGNER PURCHASE PROPERTY IN MEXICO?
HOW CAN A FOREIGNER PURCHASE PROPERTY IN MEXICO?
Foreigners who purchase property within 50 kilometers of the seashore and 100 kilometers of boarders have two options. You can purchase through a Fideicomiso (Bank Trust) or with a Mexican corporation.
DO I ACTUALLY OWN THE PROPERTY, AND WHAT IS A FIDEICOMISO?
DO I ACTUALLY OWN THE PROPERTY, AND WHAT IS A FIDEICOMISO?
Similar to a living trust, the bank acts as the trustee in a fideicomiso. The
fideicomiso is first formed for a period of 50 years, is renewable at any time, and is
perpetually guaranteed. You have complete control over the trust, can choose
beneficiaries, and can sell your property whenever you want. You also get to pick
the bank. Fideicomisos are not leases but there is an annual charge for a
fideicomiso that must be paid to the bank.
WHAT ARE THE CLOSING COSTS?
WHAT ARE THE CLOSING COSTS?
Between 5% and 8% of the property's worth will be spent on closing charges, which include taxes, notary fees, attorney fees, fideicomiso, escrow, and government fees. Usually, closing expenses are expressed as a percent and decrease as the property value increases.
HOW MUCH SHOULD I BUDGET FOR PROPERTY TAXES?
HOW MUCH SHOULD I BUDGET FOR PROPERTY TAXES?
One of the many fantastic benefits of owning in Mexico is the low property taxes. You should budget on paying roughly 0.1 % of the property's value each year. Your yearly taxes will be about $300 USD if your property is worth $300,000.
WHO TAKES PART IN THE PURCHASING PROCESS?
- Real estate agent: Your agent is the initial point of contact when you’re seeking to buy. All of the members of our team of agents are skilled and trained to support you as you navigate this thrilling process.
- Buyer’s Attorney: When buying property in Mexico, we always advise our customers to work with a reputable lawyer. The role of your attorney is to represent and safeguard you as the buyer, and they will be in charge of evaluating all contracts related to your acquisition. We exclusively collaborate with reputable firms with whom we have a lengthy relationship with.
- Notary: The notary is in charge of all real estate transactions in Mexico as well as a number of other duties, such as the verification of legal documents. Any real estate deal that hasn’t been notarized and properly registered in the Public Registry is deemed void and unenforceable.
- Bank: The bank you select to handle your trust will ensure that the closing is suitable and lawful (when purchasing through Fideicomiso). Prior to closing, they will go over all relevant paperwork, and their name and contact details will be listed alongside the buyers on the property deed. Mexican law prohibits the bank trustee from changing beneficiaries, transferring ownership of the property, or altering the trust without the buyer’s express written consent. One further approach to safeguard your interests is to work with the bank of your choice, who will examine all paperwork and represent your interests as the buyer.
