You can buy property situated within 100 kilometers of any border or within 50 kilometers of the coastline through either a bank trust or by creating a Mexican corporation.
FOR ALL RESIDENTIAL/TOURISM PROPERTY:
FIDEICOMISO (BANK TRUST)
The fideicomiso (bank trust) is a trust agreement established with a bank to hold title to a property (the property owner and the bank are named in the title documents).
This trust deed assures foreign buyers of all the rights and privileges of possession.
ADVANTAGES OF THE FIDEICOMISO (BANK TRUST):
The property owner is allowed to hold the property in perpetuity.
Fideicomiso is a 50-year trust agreement that is renewable every 50 years by you or your heirs.
Fideicomiso rights can be transferred to another foreign buyer.
One contract can be used for more than one property in the same deed.
Property can be rented, sold, or upgraded.
Heirs can inherit the rights to the fideicomiso bypassing probate, should you depart without a proper will.
When you sell there are tax advantages pertaining to capital gains taxes.
Fideicomiso is very easy to maintain by paying an annual fee to the bank.
Contact: Leah Orley | hello@rivieramayahomefinders.com | +1 (619) 787-7710
CLOSING COST IN MEXICO:
Although the steps of looking for and deciding on a property are very similar here in Mexico to those in the United States and Canada, the steps to close your property and the related costs are quite different. It is essential to consider these closing costs in Mexico in your initial budget as they may help determine which property is right for you.
WHAT DO CLOSING COST IN MEXICO INCLUDE?
When buying a property in Mexico you can expect to pay around 7% of the selling price in closing cost (Prices may vary by property but 7% is the average). Another difference in purchasing a property in Mexico vs. the U.S is that the buyer is responsible for paying all of the closing cost.
These costs should include all the following:
- Acquisition taxes – this is a tax separate from your annual property taxes.
- Permit with the Minister of Foreign Affairs
- Establishing a bank trust (fideicomiso) or Mexican corporation should include the first
- annual fee.
- Registration of the title deed.
- Appraisal
- Attorney fees
- Notary fees
- Prorated Property taxes
