Question 1

Is it possible for Americans or Canadians to own property in Mexico?

Accepted Answer

Yes. American or Canadian citizens can legally own property in Mexico. However, there are restrictions on owning land within 50 kilometres of the coastlines or 100 kilometres of international borders. In these restricted zones, you can own a property through a bank trust called “fideicomiso.”

Question 2

What are the closing expenses for buying a property in Mexico?

Accepted Answer

The closing costs for buying a property in Mexico vary between 3% to 6% of the property purchase price, based on property type and location. Closing costs may include taxes, fees and other additional charges. Typically, the lower the property price, the higher the closing costs.

Question 3

What are the tax implications for purchasing a property in Mexico?

Accepted Answer

There are tax considerations when buying property in Mexico. You’ll have to pay value-added taxes for commercial property purchases, along with annual property taxes (relatively lower compared to the North border). Also, you might have to pay capital gains tax if you resell your property in future.

Question 4

As a foreigner, can I rent out my property in Mexico?

Accepted Answer

Yes, you can rent your property. There are no specific restrictions that prevent foreigners from renting their property in Mexico. But, there are certain rules and regulations that you need to comply with. You’ll have to seek permission from local authorities and fulfill tax obligations related to rental income earned. You can seek help from a real estate agent or expert for detailed guidance.

Question 5

What factors should I take into consideration when purchasing property in Mexico?

Accepted Answer

There are several factors you must consider when investing in real estate in Mexico. These factors include property location, its overall condition, resale value and any additional expenses related to purchase and ownership. Also, you must thoroughly review the purchase agreement and legal documents. It’s good to get advice from a real estate expert or a legal advisor if you have any questions or concerns.

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