How to invest in Mexico
Manantial Real Estate will show you how
Investing in real estate is undoubtedly one of the best opportunities available, however, we would recommend that caution is used when investing in all sectors, including real estate.
Everyone knows that knowledge of the future direction of local development plans is fundamental for the optimization of any investment.
It is common knowledge that detailed information on objective value of land and properties, projected appreciation of real estate in an area and rental value are also important in order to invest wisely. Not everyone knows, however, what the hidden costs of investments are and how they affect investment.
It is, therefore, very important that all proposals are carefully evaluated before closing on any investment. The ideal solution is to avail of professional services offered by a company like Manantial Real Estate, with a solid reputation built over 12 years of experience in buying and selling real estate in the Maya Peninsula and the administrative support of offices in Milan (Italy) and in Mexico.
Manantial Real Estate is specialized in Real Estate investments in Mexico and its team of professionals – together with their local consultants - is totally dedicated to assist private individuals or companies who need support.
It is really important to know how to invest in Mexico, but securing professional support is fundamental for success.
USEFUL INFORMATION
It is not necessary to travel to Mexico to buy a property there. Anyone can avail of the Mexican Consulates and designate a representative in Mexico who may carry out all the necessary steps to purchase a property - acting by proxy.
Property deals with foreigners are managed in two ways: by Fideicomiso or by setting up a legal entity. More information below.
Direct ownership of real estate by foreigners in the 'Restricted Zone' ('Zona Restringida') is prohibited by Mexican law.
The restricted zone is basically all land within 100 kilometers -about 62 miles - of any Mexican border and within 50 kilometers - about 31 miles - of any Mexican coastline.
The Mexican government implemented the ‘Fideicomiso’ to allow foreign investment in the ‘Zona Restringida’.
The fideicomiso can be defined as a real estate trust similar to trusts set up in the United States, with the difference that a Mexican bank must be selected as the trustee and, as such, has title to the property and ownership of record.
The trust is set up for a predetermined number of years, and can be renewed upon expiry.
Acquisition of real estate can be done via a fideicomiso or by setting up a legal entity.
FIDEICOMISO:
- Set up of the Fideicomiso USD 3,000
- Taxes, Notary and Lawyer fees 5/6% of the value of property
- Management costs of the Fideicomiso USD 650 per year
- Property Tax around 50 USD per year (varies with value of property)
- VAT 11% of professional fees
LEGAL ENTITY:
- Legal Entity set up (including fees for notary and lawyer) USD. 1,500/2,000
- Tax and professional fees 5/6% of the value of property
- Company management through a chartered accountant/accounting professional USD 1,800 per year (no cost if the company is not active)
- Property Tax around 50 USD per year (varies with value of property)
- VAT 11% of professional fees
READY SET UP LEGAL ENTITY:
- Purchase of the pre- set up company USD 4,000/5,000
- Tax and professional fees 5/6% of the value of the property
- Company management through a chartered accountant/accounting professional USD 1,800 per year (no cost if the company is not active)
- Property Tax – around 50 USD per year (varies with value of property)
- VAT 11% of professional fees.
Interested in investing in Mexico?
Call us immediately or write to us, we are at your disposal to assist with any information you may require
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