It is recommended that a foreign buyer consult with an experienced real estate agent and an attorney. Especially with ownership of property within the restricted zones. These restricted zones are 100 kilometers from the international borders or within 50 kilometers of any coastline.
A Fideicomiso is a secure method of holding title. This method allows foreign ownership through a Mexican trust and gives the Purchaser all of the rights of ownership.
The bank acts as "Trustee" of the property and the Purchaser is the "Beneficiary" of the trust. The trust is not an asset of the bank. The bank simply holds the trust.
The Mexican bank or "Trustee" takes instruction from the Beneficiary of the trust (the Purchaser). The Beneficiary has the right to use, rent, occupy, lease and the right to improve it. The Beneficiary may also sell the property, or bequeath the property. The initial term of the trust is 50 years the trust can be renewed for additional periods of 50 years.
60-90 days on average.
By using a third party escrow services your money is held in a secure individually numbered escrow account until your trust is complete and the property rights have been transferred at closing.
The Purchaser should plan on approximately 4% to 6% of the purchase price.
Establishes value of the property for property tax assessment for the Purchaser. The Notary Public and attorney require it for transfer. A PeritoValuador or an Official Appraiser makes the appraisal.
If the property is purchased is in a Trust with a Mexican bank. The Purchaser will pay the costs for Assignment of those beneficial rights, bank transfer fees and registration in the Foreign Investment Registry. If the property is not under a Trust it will be necessary to acquire a permit from the Secretary of Foreign Relations to establish a trust. If the property is a vacant lot the request should include a general development plan.
There will be annual fees for the administration of the trust. These fees will range from $500 USD to $700 USD. The bank also charges fees for the transfer of rights or the establishment of a new trust. Banks do not send annual statements. It is necessary to request the bill from the trustee bank each year on the anniversary of the purchase to avoid penalties.
A title search will be generated by the Notary Public to insure that there are no liens against the property.
The transfer tax is paid by the Purchaser Is currently 2% of the sale price of the property.
Fees for services provided by the attorney and Notary and include: supervision and coordination of permits, tax payments and other details necessary to obtain full legal title. These fees are based upon the purchase price of the transaction.
The "ImpuestoSobre Valor Agregado" or value added tax is currently at 16% of the value of goods and services. and must be paid on fees charged by the notary, attorney, the appraiser and any other professionals whose services are being used
If you plan on living in Mexico for more than 6 months at a time you will need an FM-3. Apply for an FM-3 at the immigration office. You will need to renew your FM-3 every year. Manypeoplehiresomeonetohelpwiththisprocess.