Top 5 Mexico Real Estate Questions that we receive:
1. CAN THE MEXICAN GOVERMENT TAKE MY PROPERTY?
Foreigners often worry about their property being expropriated. Under NAFTA Mexico may not directly or indirectly take property except for public purpose. Same as imminent domain in the USA. Where it is necessary swift and fair market value must be paid with accrued interest. So that rumor that Mexico can take foreigners land away is “a rumor”.
2. HOW LONG CAN I RESIDE IN MEXICO EACH YEAR?
When you arrive in Mexico you receive a tourist visa validated at customs and immigration. It allows up to 180 days stay. This is the tourist visa that you receive when you enter by air or land. You can apply in your home country for a temporary resident visa valid for 12 months and renews up to 4 years.
3. CAN I OWN PROPERTY IN MEXICO?
Yes! Foreigners may obtain direct ownership of property in the interior of Mexico. 50 KM from the ocean and 100 KM from a border property is acquired through a trust bank or establishing a corporation.
4. WHAT IS A THE DIFFERENCE BETWEEN A TEMPORARY AND PERMANENT VISA?
A temporary visa is for a person who lives part time in Mexico. To be granted this status you must prove you have sufficient resources to be financially independent. Or meet certain requirements to be able to work or own a business. If you own property in Mexico the amount of resources required is reduced. The permanent resident visa is for those intending to make their home and reside in Mexico permanently. The qualifications are a bit more stringent then the temporary visa. You enjoy most rights and priviledges of a Mexican citizen except the right to vote. You do not give up your native citizenship but may work freely in Mexico and remain without annual immigration renewals.
5. ARE THERE PROPERTY TAXES AND CLOSING COSTS IN MEXICO?
Yes. Property taxes are paid annually and are not based on the Real Estate value of the property. You will find them far less than in the USA or Canada. Here in Yucatan state, taxes are less than $100 dollars per year! If paid in the beginning of the year through the months of January to March they are discounted. Note that property taxes that go unpaid will be penalized and penalty will compound which can be costly. Closing costs in Mexico on a Real Estate transaction are paid for by the buyer. Some are flat fee’s and some are based on a percentage of the purchase price of the property. These fee’s also have a cap of low and a cap of a high and not to exceed. You will find closing fee’s higher in comparison a closing costs in Canada or the USA. Ask your Realtor for an estimate.
Owning ocean front real estate in Mexico is safe & easy! Whether for retirement, vacation property, rental income and investment we have you covered & will guide you through the entire process!
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Regal Property Developments