Changes in Mexican Migratory Law, part two
This is part two of my series on the new Mexican Migratory Law; it deals with the classification of TEMPORARY RESIDENT. The previous article dealt with the classification of VISITOR as explained in the first part of Article 52 of the new Mexican Migratory Law and the following article will deal with the classification of...
New Changes to Mexican Immigration Law
On May 25th, 2011, Mexico published its new migratory law (Ley de Migración) in response to glaring human rights violations, but as well as the human rights protections, the new law also includes some changes that affect expat foreigners. This is part one of a series of articles explaining the changes in the new migratory...
Owning Property In Mexico
Ley De Fideicomiso
How many times have you heard, you can’t own property in Mexico, you can only get a long term lease! Real property ownership is not the same in Mexico article 27 of the Mexican constitution of 1917 decrees that no foreign person may be registered as the owner of any real property that...
Ask An Expert
SAT on Timeshare sales
Question: I have been contacted about selling my timeshare in Mexico. The firm claims that I must pay 12.5% tax on this sale. Can you confirm that? Answer #1 Rory King: The answer to the question is a little complicated because it depends on the type of timeshare. Most timeshares or fractional ownership packages...
Buying on the Beach
Defining Mexico’s Federal Maritime Zone
Defining and measuring the Federal Maritime Zone The Federal Maritime Zone is legally described as the 20 meter wide strip of land that is transitable and next to the beach (playa mar). Let’s break this down to make sure we are clear on what we are talking about: 1. The Federal Maritime Zone is 20...
Mexico Rental Income
Paying Tax Is Now Easier Than Ever and with Stateside Benefits!
Those who have rental properties in Mexico can now rest easy. SAT, Mexico’s Uncle Sam, has provided a straightforward and relatively simple way to declare and pay taxes on rental income for those foreigners who have long wished to be in compliance but did not know the way to do so. As of February 2010,...
The Fideicomiso Controversy
and Forms 3520 and 3520A
Per Internal Revenue Code Section 6048, any trust established in a foreign country by a United States citizen requires filing certain forms with the U.S. Department of the Treasury (Internal Revenue Service) each year. Forms 3520 and 3520A must be filed by anyone who holds an interest in a foreign trust as a beneficiary. These...
Avoid Dual Agency
Consider a Buyer’s Agent
Dual agency arises when a real estate broker or salesperson represents adverse parties (e.g., a buyer and seller) in the same transaction. In real estate the party that represents a buyer and or a seller in the purchase or sale of a property, is called an agent. In Mexico, as in other countries of the...
Title Insurance
The Essential Protection for Mexican Real Estate
Title insurance is available in Mexico. A title policy, issued in conformance with Mexican law, will protect the amount of the buyer’s investment. Canadian newspapers carried stories recently about the eviction of land owners in an area known as La Manzanilla, located on beautiful Tenacatita Bay, between Puerto Vallarta and Manzanillo on the west coast...
Capital Gains Tax
On the Sale of Your Vacation Home
Real estate investors always have a lot of questions about income tax on capital gains. Instead of writing an article giving a full explanation of how this tax is calculated, deducted, exempted and paid, I prefer to share with you the most frequently asked questions made by property owners and tax payers. What is the...
Living in a Rental Home in Mexico
...taking the big step by small measures!
Oftentimes it makes sense for newcomers to an area to rent a home prior to making a purchase. This provides an opportunity to explore, to learn the neighborhoods, and then begin to understand the personality of the city or town before making the leap to a purchase and a more permanent commitment. Everyday more and...
Property Taxes
On your vacation home
Just as in any other country, Mexico depends upon income from the annual tax on property to keep local governments functioning and provide important local services for the region… The good part is that the annual tax assessed on Mexican properties is often less than it might be for property in many other countries! And,...
