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Accountant

PROPERTY TAXES?

The enthusiasm for property ownership along the Mexican Riviera has reached new levels for the private property investor. Property taxes are minimal compared to the U.S. and Canada or Europe.

 

They are usually about $100 USD a year for every $100,000 USD of your property’s value. A $500,000 USD condominium would pay approximately $500 USD a year in property taxes, and if you pay before February 15th of each year you receive a 15% discount.

PURCHASE & SALE AGREEMENT?

Once an offer on a property has been made by a buyer and accepted by the seller, they enter into a legal contract known as a Purchase and Sale Agreement. It is required in Mexico that all legal contracts be in Spanish, so your contract will typically be in Spanish and English. If a contract is only in Spanish, it is the buyer’s responsibility to interpret the contract. Your agent will explain the contract, contingencies and importance of adhering to the time-frames.

 

When you have entered into a contract it is imperative you stay in close communication with your agent to protect your deposit and potential investment.

CLOSING COSTS?

Our goal is to educate our clients about fees and settlement costs they should expect for a typical transaction. These could change specific to your purchase/sale, but this will give you a good idea of expenses to budget for. In general terms, closing costs for foreign investors can range from 5% to 7% of your purchase price.

 

For Sellers they will vary based on taxes that may be involved. Since some closing costs are based on a percentage of the purchase price we suggest getting an estimate from the notary. Your agent can provide the details of what each line item is, typical amounts and if they are applicable to your specific purchase/sale.

WHAT IS BUYER PAYING FOR?

  • Appraisal​

  • Cautionary Notice​

  • Provisional Notice​

  • Certificate of No Debt

  • Certificate of No Property Tax Debt

  • Fiduciary Fee​

  • Copies (Copias)​

  • Additional Files​

  • Property Transmission Payment Forms 

  • Tax on Legal Instruments 

  • Tax on Property Transmission

  • Registration in Public Register

  • Registration in Foreign Investment National Register 

WHAT IS SELLER PAYING FOR?

  • Trust Bank Cancellation Fee 

  • Trust Bank Annual Payment(s)

  • Notification RNEI Cancellation Trust 

  • Employee Liquidation 

  • Real Estate Fee 

  • VAT tax on Real Estate Fee

  • Physical Inspection Credit to Buyer

  • Capital Gains Tax 

  • Power of Attorney 

  • Prorations

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