yucatan real estate
Buying Real Estate in Yucatan
- The fidiecomiso gives you the rights and the vehicle to hold title to the property in perpetuity.
- The fideicomiso is a 50-year trust agreement that is renewable every 50-years by you or your heirs.
- You can transfer your rights in the fideicomiso to a foreign buyer.
- You may rent, sell, remodel or dismantle the improvements on the property.
- Your heirs can inherit the rights to the fideicomiso, effectively by-passing probate, should you depart without a proper will.
- There are tax advantages pertaining to capital gains taxes when you sell.
- The fideicomiso is easy to maintain by paying the annual fee to the bank.
If the title papers, property dimensions and corresponding documentation are not perfect, the bank will not issue the fideicomiso. We will discuss title irregularities in a future segment.
- Allows for the purchase of properties larger than 2000 square meters.
- No limit to the number of properties it may own.
- Allows for one or more of the stockholders to legally live and work in Mexico year round.
Disadvantages of the FOMC:
- The corporation requires more hands on attention than the fideicomiso.
- Does not have the ability to avoid capital gains taxes when it sells property.
- Requires a managing partner with a proper visa.
- Monthly reporting of financial activity through a certified accountant.
- Years of ownership.
- Citizenship or immigrant status.
- Title held in Fideicomiso or Corporation.
- Square meters of property.
- Square meters of construction.
- Electrical or Telephone receipts in Owners name that reflects the address of the property.
- Proper ID of the Seller that reflects the property address.
If the property qualifies as your primary residence you can usually avoid a substantial amount of the ISR. To qualify for this exemption, as a foreigner, you will need to have the following:
- A current visa that reflects your name and address as it appears on your escrituras/fideicomiso.
- Electrical and/or telephone receipts that also reflect the name and address recorded in the escrituras.
- The property must be held in a fideicomiso (corporations do not qualify to avoid the ISR tax).
Currently, a home owner that qualifies to avoid a percentage, or all of the ISR are allowed to exercise that privilege once every 5-years.
- Aval o Bancario
- Derecho de inscripci n
- Aviso de Relaciones Exteriores.
- Impuesto Sobre la Renta. (plusval a-vendedor)
- Impuesto Sobre la Adquisici n de Inmuebles. (2% Municipio)
- Impuesto al Valor Agregado.
- Derecho sobre Escrituras P blicas.
- Certificado de Libertad de Gravamen.
- Certificado de no adeudar Impuesto Predial.
- Certificado de no adeudar Cooperaci n Municipal.
- Oficio Catastral (divisi n, uni n, otro).
- Aval o Bancario.
- Registro P blico: derechos. Grat.
- Catastro F-2.
- Otros: Constancia Agua Potable
- Notario y Abagado
Generally speaking, the closing cost will run as low as 4% of the purchase price but can run higher depending upon the vehicle used to hold title and the valor value of the property.