ACQUIRING PROPERTY AS A FOREIGNER
SERVICES
ACQUIRING A PROPERTY
By general principles, foreigners are enabled to obtain direct ownership of a property in Mexico, nevertheless, the Mexican constitution establishes that foreigners cannot do it within a restric- ted zone of 100 km from the border and within 50 km from the sea coast of Mexico. However, foreigners are able to acquire properties in such restricted areas through a Mexican Bank with a Bank Trust as a Trustee Beneficiary. A Bank Trust has a duration of 50 years, and it can be renewed once this time elapses.
MAIN FAQ'S
legal closing costs
Between 5% to 10% of the Purchase Price, which inclu- des all the costs that will be needed to close the transaction and are paid by the Purchaser.
This percentage includes the Acquisition Tax, Taxes, Duties, Expenses, and legal Coordination Fees from LOES ATTORNEYS.
co-ownership
The Trust Bank can have more than one Trustee Beneficiary in the percenta- ges that are required, each Trustee Beneficiary must designate a Substitute Beneficiary Upon Death.
formalization of the deed and trust
All Real Estate Deeds must be regis- tered before a Public Notary, an attor- ney officially appointed by the Mexican Government to give faith in specific legal acts. The Notary Publicis usually elected by the Purchaser accordingly and is liable to retain and pay the applicable taxes on behalf of the parties at the Title Execution. Once Title is executed the notary submits it for its Public Registration.
BANK TRUST
The main obligation to consider when holding a Trust is paying the annual bank fees, paid on the anniversary of the Title Deed on which the Bank Trust was constituted. The first annual Bank Fee is paid as a requirement to Set up The Trust, meaning the first payment will be one year after Title execution.
number of properties held by the trust
More than one Property can be held by the Bank Trust, however, sometimes depen- ding on the Purchaser’s interests and the Mexican Bank elected it is preferable to only include one.
selling the property
Once you decide you want to sell your property and find a purchaser to acquire it you will need to consider the Capital Gain Taxes which are always paid by the Seller to the Public Notary who will pay them on your behalf. You can send us an email so we can calculate them for you. Regar- ding your Trust you will have to:
A) Reassign the Trust Rights to another foreigner; OR
B) Extinguish the Trust in case a Mexican is acquiring the Property.
ESCROW
Our meticulous escrow services ensure secure transactions, offering peace of mind to buyers and sellers alike. Your funds are in safe hands.
REAL ESTATE
From contracts to closings, our real estate legal experts have you covered. Trust us to safeguard your property interests.
IMMIGRATION
Navigate the complex immigration landscape with confidence. We provide expert guidance for a smooth transition to the México.
CORPORATE SERVICES
Elevate your business with our comprehensive corporate services. We handle legal intricacies so you can focus on growth and success.