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Frecuently Asked Questions

On average, it takes 30 to 90 days to sell a home. However, timelines vary depending on your local market dynamics, home type and factors pricing, condition, and location. Home buyers can ask their real estate agent for insights on how quickly homes are moving or refer to websites for region-specific information.  

Consider essential repairs first, addressing structural issues and enhancing curb appeal. Appearance upgrades can also boost appeal but prioritize those with a high return on investment. Research market trends and consult professionals to guide your decisions within your budget and timeline. Most buyers would like to make their new home “their own”, so improvements that imply changing colors or light fixtures or decor are not a priority.

When pricing your property in Mexico, consider location, property type, size, market conditions, comparable sales, renovations, legal status, and your marketing strategy. These factors influence its value and help determine a competitive price aligned with market trends and buyer expectations.

Ensuring the legal security of a property in Mexico involves conducting a comprehensive title search, verifying permits, and zoning regulations, reviewing contracts meticulously, considering title insurance, clearing tax obligations, seeking legal assistance, understanding community regulations, conducting due diligence, and consulting with real estate professionals.

Yes, foreigners can obtain mortgages in Mexico, but requirements may vary. Some key factors include residency status, income, credit history, down payment, property type, and currency. Research lenders, understand terms, and consider seeking guidance from local professionals and well stablish companies.

The seller typically pays property tax up to the closing date, after which it becomes the buyer’s responsibility annually. Additionally, buyers are responsible for the Acquisition Tax, currently at 2% of the declared transaction value. Additionally, condos may have additional fees such as homeowners’ association charges. Utilities are reasonably priced, and household staff like maids, chefs, and butlers are also affordable.

In general terms, there are three types of taxes that foreigners pay when acquiring and owning real estate in Mexico: 

  • Real Estate Acquisition Tax (ISAI): It depends on each entity so its cost varies. It is usually equivalent to 2% of the price of the real estate.
    1.depending on the municipality).

2.The notary public retains the ISAI

3.Land use and sale price determine the payment or exemption from ISAI.

  • Income Tax (ISR): This is the tax levied on income received in Mexico.
  • Property Tax (Impuesto Predial): This is the tax payment for any owner of real estate, depending on each state.

The typical process of buying property in Mexico involves several key stages to ensure a smooth transaction. Buyers make formal offers using an “Offer to Acquire” and engage an Escrow Agent. A due diligence period of up to 14 days allows for property examination such as no liens, utilities and taxes up to date, property inspections, HOA review (if applicable).

After resolving any concerns, the contingencies will be removed and then earnest money (or good faith money), which represents 10% of purchase price should be deposit on Escrow (also an Escrow fee is involved on this stage) and the sale goes hard and the deposit will become non refundable.

The process to create a trust or assume the trust  and the title transfer takes up to 45 days, ensuring legality. Closing, typically within 15 days, finalizes the sale, and buyers receive the deed post-closing. 

Professional assistance ensures a successful acquisition and legal certainty.

Closing Costs in Mexico typically include:

  • Bank Trust: Foreigners must use a bank trust, or Fideicomiso, to own property near the coastline or border. Costs range from US$500 to US$1,500 annually.
  • Notary Fees: Notaries prepare and certify legal documents, costing around 0.5% to 1% of the property value.
  • Title Search and Insurance: Ensures clear title and protection from claims. Costs about 0.5% to 1% of property value.
  • Appraisal: Determines fair market value, costing around US$300 to US$500.
  • Transfer Tax: Paid to the government, varies by state, around 2% to 2.5% of property value.

             Regarding taxes:

  • Value Added Tax (VAT): Applies if the seller is a developer or company, at a rate of 16%.
  • Property Tax (Predial): Paid annually to local government, typically 0.1% to 1% of property value.

All these costs represent 5-10% of the purchase price.

The key differences between buying property in Mexico compared to your home country may include varying ownership laws, transaction processes, and cultural nuances. However, with proper research and professional guidance, these disparities can be effectively managed, making investing in Mexico an exciting opportunity with potential for growth and value.

A purchase in Mexico includes dealing with notaries, appraisers, bank trustees, closing coordinators among others, each component and entity plays a crucial role in the process. It’s essential to work with reputable Real Estate professional that understands the local regulations and can guide you and accompany you through the whole process

Yes, foreigners can own property in Mexico. In 1994, amendments to the Constitution permitted foreigners to purchase and own real estate in Mexico located within the “restricted zone” which is all land within 60 miles of a national border and within 30 miles of the Mexican Coast. This Law permitted ownership through a land trust or “Fideicomiso”.

A “Fideicomiso” is a Mexican Trust. The way it works is the Mexican Government issues a permit to a Chartered Bank of your choice doing business in Mexico. This allows the bank to act as the Administrator for the owner of the property. The bank acts as the “Trustee” for the Trust and the Owner is the “Beneficiary” of the Trust. The “Beneficiary” rights are very similar to Living Wills or Estate Trusts in the U.S.

You have all the rights that an owner of property in the U.S. or Canada has, including the right to enjoy the property, sell the property, rent the property, improve the property, etc.

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At RE/MAX Romantica, we blend local expertise with a global reach. We’re part of the world’s most recognized and trusted real estate brand, RE/MAX, ensuring that we have the resources and connections to serve you beyond borders. Our local insight, combined with the power of the RE/MAX network, delivers a unique advantage in Puerto Vallarta’s competitive real estate market.

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