Property Ownership in Yucatan
The Fideicomiso is a trust agreement which is established for fifty years and can be renewed for fifty years increments. A Mexican bank is designated as the trustee and acts on behalf of the foreign buyer and the bank has a fiduciary obligation to follow the instructions given by the foreigner who is the trust beneficiary. As the beneficiary, you have all the rights of ownership including the right to modify, rent, sell or will the property to your heirs without probate. The cost of establishing a trust or fideicomiso is approximately $2,500 USD. There is an annual fee based on a percentage of the value of the property. Fees vary from bank to bank but for a house in the $100,000 range, the fee would be approximately $500 USD.
You may also own property as a Mexican Corporation. It cost approximately $1,500 USD to form a corporation. You will need an accountant (fees range from $50 to $100 USD per month) to report your earnings each month to the Mexican Government. The principal officer of the corporation is required to have an FM3 Visa. You can either apply for the visa yourself at Imigracion or you can hire an attorney to handle the process for you.
Your attorney will review your purchase agreement, your deed and title to ensure the title is clear of liens; will facilitate the creation of your trust or corporation; review the final sales contract; collect and pay all appropriate taxes; and record your new deed as required by Mexican law.
We can highly recommend several BI-lingual attorneys and accountants that can help you with either your fideicomiso, corporation or FM3.
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