Ask an Expert – What are trust administration fees?
What exactly is the annual “administration” of the Mexican Bank Trust? Does the bank actually do anything on an annual basis besides sending me an invoice? [The bank that administers my trust] just sent me an invoice for $616.52 U.S. for the “annual administration” of the trust. Last year it was $603.66 U.S. I have...
ZEE and Chinese Investment in Mexico
The states of Michoacan and Guerrero have recently established several municipalities along their seacoasts as a Special Economic Zone (Zona Economica Especial, also known as ZEE). This action is expected to increase commerce and detonate the economy of the areas. Chinese officials visited the states of Michoacan and Guerrero earlier this month to review and...
Do I have to pay taxes on my Mexico rental in the US?
Do I need to pay income taxes on my Mexico rental property if I only rent it a few times a year? YES! Mexican newspapers are full of headlines about the growing problem of foreigners who are renting their homes or condominiums and failing to pay Mexican taxes. Not only is this a...
Ask an Expert – Do foreigners have to pay taxes in Mexico?
If I do not earn any income in Mexico, nor have any investments in Mexico, as a permanent resident do I need to file a Mexican income tax return? Question 1: I sold my principal residence (not a rental) in PV in June and paid Capital Gains tax. I know I have to go to SAT...
Owning Property In Mexico
Ley De Fideicomiso
http://youtu.be/lKGgxj4OZkk How many times have you heard, you can’t own property in Mexico, you can only get a long term lease! Real property ownership is not the same in Mexico article 27 of the Mexican constitution of 1917 decrees that no foreign person may be registered as the owner of any real property...
Mexico Rental Income
Paying Tax Is Now Easier Than Ever and with Stateside Benefits!
http://youtu.be/UJUrtLMJByw Those who have rental properties in Mexico can now rest easy. SAT, Mexico’s Uncle Sam, has provided a straightforward and relatively simple way to declare and pay taxes on rental income for those foreigners who have long wished to be in compliance but did not know the way to do so. As of February...
The Fideicomiso Controversy
and Forms 3520 and 3520A
Per Internal Revenue Code Section 6048, any trust established in a foreign country by a United States citizen requires filing certain forms with the U.S. Department of the Treasury (Internal Revenue Service) each year. Forms 3520 and 3520A must be filed by anyone who holds an interest in a foreign trust as a beneficiary. These...
Avoid Dual Agency
Consider a Buyer’s Agent
Dual agency arises when a real estate broker or salesperson represents adverse parties (e.g., a buyer and seller) in the same transaction. In real estate the party that represents a buyer and or a seller in the purchase or sale of a property, is called an agent. In Mexico, as in other countries of the...
Title Insurance
The Essential Protection for Mexican Real Estate
Title insurance is available in Mexico. A title policy, issued in conformance with Mexican law, will protect the amount of the buyer’s investment. Canadian newspapers carried stories recently about the eviction of land owners in an area known as La Manzanilla, located on beautiful Tenacatita Bay, between Puerto Vallarta and Manzanillo on the west coast...
Living in a Rental Home in Mexico
...taking the big step by small measures!
Oftentimes it makes sense for newcomers to an area to rent a home prior to making a purchase. This provides an opportunity to explore, to learn the neighborhoods, and then begin to understand the personality of the city or town before making the leap to a purchase and a more permanent commitment. Everyday more and...
Property Taxes
On your vacation home
Just as in any other country, Mexico depends upon income from the annual tax on property to keep local governments functioning and provide important local services for the region… The good part is that the annual tax assessed on Mexican properties is often less than it might be for property in many other countries! And,...
Dia de Los Muertos
The Mexican Day of the Dead
Dia de los Muertos, Day of the Dead, celebrated in Mexico and other Hispanic countries, has considerable religious significance and predates the conquest of Mexico by Hernando Cortez. The festive period begins on the night of October 31, and continues through All Saints Day and All Souls Day, celebrated November 1st and 2nd respectively. On...
