The appeal is more than just the thought of permanently toasty weather. The cost of living, from housing to health care, is significantly lower in Mexico than it is in the U.S. That makes the country especially attractive to retirees on fixed incomes, as well as to younger telecommuters and others with portable jobs fleeing high-cost U.S. cities. SIMPLE STEPS TO MEXICO HOME OWNERSHIP
While it’s difficult to calculate the number of Americans living abroad, there have been estimates that more one million
Discover why more and more Americans & Canadians are choosing to invest and retire in
Determine if the new location offers you a selection of things that you're interested in. For example, if you’re looking for a quiet and relaxing place to get away from it all, does your new property afford you that opportunity? If you like more adventurous activities, will you have access to them in your new place? If you need to travel to do what you love (for instance, if you like to take ski trips in winter), does the location have good transportation (public transportation, airports, etc.)? Many people who plan on buying a home in Mexico discover that some of the best destinations, like Puerta Vallarta, offer a blend of both – plenty of space to relax and catch up on the easy life, but filled with activities far and wide to keep things interesting.
Is the location close enough in general? Can you drive there? If not, can you fly easily? And if you fly, what arrangements will have to be made for when you are there, and when you're away? And wherever you decide to live, is it close enough (or easy enough) for your friends and family to come and visit?
Purchase your property with a reputable real estate entity. Having a knowledgeable and trustworthy agent (or broker) makes the search for just the right property easy and pleasant, and will help you find what you’re looking for, faster.
Ask questions – get to know your potential neighbors, both on the property and nearby. Consult with locals and local officials, visitor centers and/or chambers of commerce to get the inside scoop on where you want to live.
Research the property and the destination as much as possible. There's a multitude of information available in travel books and on the Internet, including descriptions of properties and locations, fellow traveler’s and buyer’s reviews, and images of the area you’re interested in.
Come visit. If you’re interested in any of our destinations, it’s easy to book a discovery package to get acquainted with our luxury vacation properties. This is the best way to try the property on for size, visit local restaurants, see the sights, and generally get to know us. It’s a good idea to ensure that your passport is in good standing. Passports will be required for traveling to many parts of Mexico to research a potential second or retirement home.
Get your finances and personal life in order. Make sure you have a solid understanding of what you can afford to spend on a second or retirement home. Determine what steps you need to take at home to take on the responsibility of a second home, before you start buying real estate in Mexico.
Foreigners Can Own Property In Mexico! (FAQ)
Can Foreigners own property on the beach or near the beach in Mexico? Yes. Recent changes to Mexican laws now permit foreign ownership of Mexican Real Estate. There are actually several ways a foreigner can legally purchase property and the best way for you will depend on your investment interest.
Can I get U.S. Title Insurance for Mexican property? Yes. There are now at least two U.S. title companies that will insure your investment in Mexico. Baja123.com will make certain you are buying a property that can be secured with U.S. Title Insurance.
Is financing available? For more information on financing Contact us
What is a trustee? In México, there is a Bank, which is authorized to open fiduciary accounts and conduct trust operations. The Trustee holds legal title to the real estate property during the term of the Mexican trust contract, and is also empowered with rights and powers necessary to achieve the objectives to the contractual agreement creating the Trust.
What exactly is a Mexico Bank Trust? The Fideicomiso or Mexican Bank Trust is a mechanism that enables foreign persons or companies to purchase property in Mexico. The trust mechanism was created to allow foreign investors to participate in Mexico's rapidly expanding sectors, while exercising complete and legal control over their investments while complying with Mexico's investment laws.
The trust is a property interest held by a Mexican bank. The sole purpose of the bank is to manage the property for the benefit of the owner of the trust. Real estate investment trusts enable foreign entities to invest in Mexico's coastal and border areas which were once restricted from foreign investment of any kind.
Only Mexican banking institutions authorized and regulated under Mexican laws can serve as trustees. The beneficiary of the trust, the foreigner, retains the use and control of the property held in trust and makes the investment decisions with respect to the property. This can include the decision to transfer such property interest to another foreigner realizing all of the economic benefits that accompany equity ownership in Mexico's attractive coastal properties.
Trusts are established for initial 50 year periods and can be renewed indefinitely for additional 50 year periods. The beneficiary may transfer or assign his beneficial interest to any person and keep the profits from the sale of the property subject to applicable tax laws and expenses for the sale. Property held under a trust can be passed on to future generations and the person to which the bequest is made is not burdened with an inheritance tax.
Fideicomisos are an easy and safe way for you to own property in Mexico. They are government sanctioned and offer strong protection. Potential investors are encouraged to contact us for assistance in setting up your Mexican bank trust.
What requirements are necessary? You or the seller must provide to the bank the following information:
A) A copy of the real estate title or deed indicating the exact surface area and boundaries. B) A copy of a draft of the property. C) The name (s) of the beneficiary (ies), nationality, address and phone number. D) The agreed purchase price.
Upon receiving the information and documents, the bank shall proceed to apply at the Mexican foreign affairs ministry, for the Trust Permit; once obtained at the Bank, we shall proceed to execute and legalize the Mexican Trust Contract before a Mexican notary public. Notaries in México have far greater legal competence than those in the United States. The Mexican notary public is an attorney at law, who is authorized by the Goverment to give final formality to the title transfer process in his protocol Book. The resulting document taken from his protocol book is registered at the public registry of the properties, and it will give evidence of the title in the name of the buyer.
What rights and obligations does the beneficiary assume upon the celebration of the Mexican trust contract? As the Trust Beneficiary, you will have the use and possession of the property, that is, you may live on the land, undertake any alterations and improvements. You also have the capacity to instruct the Trustee on mortgaging the real estate, renting it, selling, transferring it in to your beneficial interest to another person or corporation.
If you sell the property to another foreigner, you may assign your beneficial interest to the new purchaser. This assignment of rights must be formalized before a Mexican notary public, prior to the payment of the federal and local taxes and fees that arise from the transfer of beneficial rights.
You will have the obligation to pay the duties on land, i.e.: Annual property tax, condominium, maintenance fees, water, electricity, annual Trustee fee, ETC.
What fees will the trustee charge for this type of Mexican trust contract? The fees which the Trust Division of Scotiabank Inverlat., charges for this type of Trust are:
A) As a Trustee acceptance charge, $500.00 USD, payable once upon the signing of the Mexican Trust Contract.
B)For the handling and servicing of the Trust, $500.00 USD a year, payable in advance. This fee will be increased by the Trustee each two years, according to the U.S.A. inflation rate. Every year, on the anniversary date of the Trust, the Bank shall mail to your address the bill of the annual fee for keeping the property in Trust. All the Trusty fees cause the value added tax (IVA) and are subject to change.
What other expenses must the beneficiary meet upon the celebration of the trust deed? You must pay out the fees, taxes and expenses that arise from the purchase as well as the formalization of the Trust deed before a Mexican notary public. Also, you will pay the cost of the permit that must be obtained from the Mexican foreign affairs ministry to acquire the property in Trust, and the recording of the Trust deed at the National Registry of Foreign Investments.
What happens if the beneficiary should die during the legal period of the Mexican trust contract? The Beneficiary has the right to appoint substitute Beneficiary (ies) who will receive all the rights and obligations that arise from the Mexican Trust contract, if the Beneficiary dies during the life of the Trust. With this designation of substitute Beneficiaries, your heirs will not need to follow any probate proceeding before the Méxican courts, that could take time and attorneys fees. They would only have to give notice to the bank of the deceased and show the death certificate and their identifications. Then, the bank will give instructions to a Mexican notary public as to the proper protocol of the documents and with the resulting deed register them as the new owners (Beneficiaries) of the Trust property.
What will happen at the expiration of the Mexican trust contract? On December 27, 1993 a presidential decree was issued establishing the new Foreign Investment Law. According to article 13 of this Law, the Mexican foreign affairs Ministry shall allow the renewal of the Trust over the "Restricted Zone" upon the expiration of their term.
Furthermore, the Mexican foreign affairs ministry may authorize a new Trust over real estate transferred from one Trust to another for a period up to 50 years when the Beneficiaries of the original and the new Trust are different.
If you have further questions please to not hesitate to contact us we will be happy to assist you.
WE ARE READY WHEN YOU ARE!
Contact US
info@emexicorealestate.com
