Buying Real Estate in Mexico
Closing Costs
Trust Costs
In average the costs to set up a New Trust are around $ 2,500 US. In addition to this fee the annual servicing fee is around $400 to 510 US. Not all the banks charge the same amount for their services; we will refer you to the ones we have a working relationship with. What you are paying for is:
- Obtaining the permit from the Ministry of Foreign Affairs
- Registration at National Registry of Foreign Investments
- Bank Trust Set up & annual Fees
* Please check with selected Bank since these fees may vary.
Notary fees, Taxes, & other legal fees
Depending on the Notary, these fees run around 5-7% of the purchase price What you are paying for is:
- Blue prints
- Appraisal
- Solvency Certificate
- Freedom of Liens Certificate
- Acquisition Tax
- Public Records Office Dues
- Miscellaneous
- Legal fees
FYI
Property Taxes (Predial)
Closing cost seem a bit high to you?, There is a bright side! In Mexico property taxes are substantially less than in the US or Canada The average is approximately 0.1% of the assessed value of the property at time of sale.( app $200 -$300 per year)
FM3 Visa
For those wishing to live part time in Mexico, are planning to buy a home, or are property owners already obtaining an FM3 Visa is strongly suggested, this visa will give you a temporary resident status that will allow you to stay in the country year round, besides this it will also give you more benefits such as: 50% discount on your property taxes, you can apply for an exemption on property gains taxes once you are ready to sell your property, you can open a bank account, you can keep your vehicle in Mexico and other advantages that will make your life easier.
Mortgage
If you wish to buy a property but don’t have all the cash or simply don’t want to invest all your money RMM REALTY can help you process your loan, we are authorized brokers by American and Mexican financing institutions lending to foreigners, talk to one of our sales agents for further information on rates and terms.
