1. Questions and Answers
2. Capital Gains Information
3. Legal FAQ's
4. Key Words
Questions and Answers
Selling and Buying Mexican PropertyQ: If I list my property for sale through your company, what would be the commission?
A: The standard Broker’s fee applicable on the West Coast of Mexico is 8% of the sale value.
Q: Do I also have to pay the notary’s fees in order to transfer this property to the new owners?
A: No, the standard practice is for the Buyer to cover these costs.
Q: Do I have to pay taxes
on Capital Gains relation to the sale of my property?
A. This depends on the sale value and the time that you held the property in your name. (Please see attached explanation on this subject)
Q: Which other fees do I pay?
A: As the seller you only pay the Real Estate commission and if applicable the Capital Gains.
Q: As a non-Mexican citizen, can I purchase property in Mexico?
A: Yes, however you must use a bank trust if you wish to purchase and property within the “Restricted Zone”: 100 KMTS (62 miles) from the border, or 50 KMTS (31 miles from the coast.
There is no need for a bank trust when buying property outside the “Restricted Zone”, (The only requirement, is a prior permit issued on your behalf by the Federal Government).
Q: What is “Property” Bank Trust” (Fideicomiso)?
A: Since you cannot directly own property within the Restricted Zone area mentioned above, you must appoint a Mexican bank of your choice, to act as “Trustee for the property you are buying.
Q: Will the property be in my name while in a trust?
A: No. It will be in the bank’s name, but held in a trust issued in your name.
Q: What is a “Notario Publico”? (Notary)
A: A “Notario Publico” is a lawyer, authorized by the state government to act in all legal manners pertaining to all closing or sales of Real Estate property. They collect the taxes due on the sale of the property, certifying all legal documents etc.
Q: Does this mean that in order for me to purchase or sell any property in Mexico, I must first contact the services of a “Notario”?
A: No, your Lloyd Real Estate Agent can help you choose a Notario. If you are the buyer the Notario will ascertain on your behalf, that the property you are purchasing, is free from any encumbrances. (Including Taxes due) Also, he will issues the corresponding property title and have it registered in the Public Register’s office.
Q: Do I have to pay Mexican Federal Taxes when purchasing a property?
A: Yes, you will have to pay the Transfer Tax (2%) of the appraised value. The will be in the Notary’s fees. Also if you have set up a bank trust, the bank selected will have certain annual fees to administer your trust.
