Frequently Asked Questions
FAQ
Can foreigners legally own land and real estate in Mexico?
The short answer is YES! Of course, there are legal steps you will have to follow when buying property in Mexico as a foreigner, but with our help and guidance, you’ll soon discover that the process is simple and easy to understand.
In short, foreigners buying property in Mexico need to own it through a bank trust referred to as a Fideicomiso.
Will some of my homeowner rights be restricted as a foreigner?
No. Your rights will not be restricted. A foreign buyer has the right to use, enjoy, improve, rent, sell, or otherwise enjoy the property. As the Beneficiary of the Trust, you retain all ownership rights and responsibilities to the property. Will have the right to sell, lease, improve, mortgage, or will the property to your heirs.
Essentially, the beneficiary of the property enjoys all the rights he would if ownership were fee-simple.
How to Get An RFC Tax Number If You Want To Be A Registered Tax Payer In Mexico?
The RFC is a unique TAX ID number issued to all active and non-active tax payers in Mexico. This can be obtained online or a short visit in person to the local SAT office (Mexican IRS office) can obtain your RFC for the closing of the property.
Therefore, you will need your original Passport, Immigration Card and proof of address to obtain the RFC in person at the SAT office.
What is a ''Notario Publico''?
A Notary in Mexico, called a “Notario Publico,” is a licensed attorney, certified by the State or Federal government to act as an official and unbiased representative of the government of Mexico. A Notary in Mexico has far greater responsibility than a Notary in some other countries. Although the Notario is a lawyer, they do not act as your lawyer in this case. As they are representing the buyer, seller, and the state.
The Notary performs a variety of tasks including the authentication of legal documents, the calculation of capital gains tax and is responsible for ratifying ALL real estate transactions in Mexico. Any real estate transaction not ratified before a Notary and duly recorded in the Public Registry is considered invalid and not enforceable.
Do I Need A Temporary Or Permanent Resident Card In Mexico?
If you do not plan to stay in Mexico for more than 6 months at any time then no, you don’t.
When entering the country, at the airport you will receive a little piece of paper (at the immigration counter). That is called a Mexico Tourist Visa.
What Is A Mexican Bank Trust Or Fideicomiso?
A Fideicomiso is basically the equivalent of a beneficiary trust that’s created through a Mexican bank for the sole purpose of allowing foreigners to purchase real estate in Mexico.
Including property for sale in the Restricted Zones (a zone that lie within 100 kilometers of all borders and within 50 kilometers of all coastlines).
What Documents Do I Need In Order To Buy Property In Mexico?
Apart from having the necessary funds, there are standard documents you will need to present to the Notary when buying property in Mexico as a foreigner.
Valid passport, proof of address (in the form of a recent utility bill), photo ID apart from the passport (like a valid driver’s license), Beneficiary full information, a Mexican CURP number (if you have one), A Mexican RFC number (if you don’t have one, a generic one will be created for you at closing).
What are closing costs in Mexico?
Closing costs in Mexico are calculated differently than in some other countries. The largest portion is the mandatory 2% Acquisition Tax paid by the Buyer for all real estate acquisitions. Other costs include permits, Notary fees, certificates or no debt, appraisal, etc.
Depending on the purchase price, Closings Costs can run anywhere from 3.5% to 6% of the purchase price. All closing costs are deductible expenses when you sell your property
What does the ''Notario Publico'' do in a Real Estate transaction?
In a real estate transaction, the Notary is equally responsible to both Buyer and Seller. However, they are ultimately responsible to the Mexican government. Their job is to insure the legality of the transfer of title, to calculate and retain Seller’s capital gain tax on behalf of the Mexican government, collect the Purchaser’s 2% Acquisition Tax and pay it to the Department of Foreign Affairs, coordinate appraisals, certificates of no debt and request all corresponding permits.
After Closing, the Notary must record the transaction at the Public Registry and at the Cadastral Office (Tax Office). For this service the Notary charges a fee based on the value of the property.
What is a Mexico Tourist Visa?
a Mexico Tourist Visa is the document that’s obtained when a person first enters Mexico.
Mexico Tourist Visas can easily be continually renewed by leaving Mexico within the allotted 180-day period, then simply reentering.
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