How to purchase Edijo Land without heartache

How to purchase Edijo Land without heartache

401k, Bank Accounts, Beachfront Lots, Ejido, Land for sale in puerto vallarta, Mexico, Money, News
Can I Buy Ejido Land? Yes, it is possible to safely purchase ejido land. However the process of purchasing ejido land is exact and it must be completed correctly. It is never recommended that anyone purchase ejido land without qualified legal assistance. Is it Safe? I’ve Heard Rumors. Yes! Purchasing ejido land is safe, however most investors are sure to hear a different story. Ejido horror stories have been broadcasted by investors that have failed to understand the importance of working with a qualified attorney. Most of these ‘horror stories’ seem to originate from Baja California, and date back to the mid 1990’s, just after the Mexican constitution was changed to allow for the privatization of ejido land. Unfortunately for investors, this was a time when the entire concept of…
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Understanding Capital Gains TAX in Mexico

Understanding Capital Gains TAX in Mexico

401k, Bank Accounts, Ejido, FAQ, Mexico, Money, News
Capital Gains Tax Capital gains tax law in Mexico states that tax is owed on the profit you receive when you sell your home or property. By law, you have two options when it comes to capital gains and you can use whichever is the better of the two options for you: 1. You pay 28 percent* of the net profit. (There are a variety of deductions included in this option.) 2. You pay 25 percent* of the gross sales amount with no deductions. Although a 28 percent capital gains tax may seem high, Mexico does have several laws and procedures that will assist you in maximizing your cost basis, thereby reducing your net profit and lowering your capital gains. The key is to understand these laws before you buy,…
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Manifesting my construction to save on Capital Gains Tax in Mexico

Manifesting my construction to save on Capital Gains Tax in Mexico

401k, Bank Accounts, Beachfront Lots, Ejido, FAQ, Land for sale in puerto vallarta, Mexico, Money, News
What is manifesting? Manifesting is simply recording the amount of money spent on a home’s construction or remodel, in order to add it to the Owners’ cost basis. Adding to your cost basis is the key to reducing your capital gains tax. Proper documentation and manifesting your construction are vital to building your new home. Why do I need to manifest my construction? When you sell your home, the manifested cost plus the cost of your lot stated in your trust (title), will be used to determine the basis for capital gains tax. If you have not manifested your construction, Mexican tax law will not recognize your construction costs and you will not be able to use them as a deductible expense. All of your receipts, cancelled checks and bank…
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The low down on Ejido Land and Land banking in Mexico

The low down on Ejido Land and Land banking in Mexico

Ejido, Land for sale in puerto vallarta, Mexico, News
The ejido is a Mexican concept not well understood by foreigners. What is an ejido, exactly? The word, pronounced ay-hee-do, is thought to be derived from the Latin exitus, meaning "the way out." Presumably ejidos got their name from being located at the outskirts of towns and cities, and they were, and some still are, small Mexican villages. The ejido is defined as a community that has joint ownership of a piece of land, lives on the land, and practices joint agriculture on it. While this was the original intention, and was once an accurate description of ejido activity, more and more ejidos today exist as land where no one lives and no agriculture takes place. The ejido was a concept practiced by the Aztecs. It has had a long…
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Mexico has high taxes on rental income

Mexico has high taxes on rental income

Mexico, Money, News
INDIVIDUAL TAXATION Nonresident individuals are liable to pay tax on their Mexican-sourced income. Married couples are taxed separately. INCOME TAX (Impuesto Sobre la Renta, ISR) Income earned by nonresidents is taxed at progressive rates. INCOME TAX 2013 FOR NON-RESIDENTS TAXABLE INCOME, MXP (US$) TAX RATE Up to 125,900 (US$8,393) 0% 125,900 – 1 million (US$66,667) 15% Over 1 million (US$66,667) 30% Source: Global Property Guide   However, nonresidents may be liable to pay 25% withholding tax on their Mexican-sourced income. RENTAL INCOME There are several ways to tax rental income earned by nonresident individuals in Mexico: (1) through the 25% withholding tax and (2) by electing the business income option. 25% Withholding Tax Gross rental income from the leasing of real estate, property and time-sharing services by a nonresident individual…
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Mexico’s admirable housing market

Mexico’s admirable housing market

Mexico, News
House prices in Mexico rose by 6.38% during the year to Q2 2015. When adjusted for inflation, house prices were up by around 3.35%, based on figures from Sociedad Hipotecaria Federal(SHF). This followed 4.9% (1.78% in real terms) y-o-y growth in Q1 2015, revised from a preliminary 0.61% (-2.68% in real terms) y-o-y growth estimate by SHF. Mexico´s real estate market has been buoyed by strong demand in resort communities, according to the International Consortium of Real Estate Associations (ICREA). American and Canadian buyers are returning to Mexico, after a several-year slump, thanks to low oil prices and the strong US dollar, pushing home values up. American buyers are very important as owners of beachfront properties, which were badly affected by the slump of 2009-10 in areas like Baja California…
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Should You Buy A Condo Over A Single-Family Home?

Should You Buy A Condo Over A Single-Family Home?

FAQ, Health Care, Inspection Visit, Land for sale in puerto vallarta, Mexico, News, Pre Construction
Lower costs and included maintenance make condos attractive to first-time home buyers, but compared to single-family houses, condos have risks. What to know before you buy a condo. With a smaller footprint then a family home this means your condo is taking up less valuable land, you can see why more developers are building condo projects in Puerto Vallarta. First-time homebuyers can get overwhelmed quickly. Learning the terms, negotiating the loan market…even if you’re not a first-time buyer, there’s a lot to consider. In the fast-growing real estate market, many aspiring homeowners are opting for condominiums because they’re newer, smaller and often have associations that handle maintenance and sometimes provide perks like shared pools. While you shouldn’t look at any primary residence as an investment, per se, you might ask yourself: Will…
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What is the restriced zones in MEXICO

What is the restriced zones in MEXICO

FAQ, Mexico
The Restricted Zone in Mexico (known in the past as the "Prohibited Zone") is set up as such in the Mexican Federal Constitution. It is: (1) the land area within 100 kilometers of Mexico's international land borders (with U.S., Belize and Guatemala) (all of the border towns and a little more); and (2) the land area within 50 kilometers of Mexico's ocean front areas (the coast line of Mexico). In the Restricted Zone foreigners to Mexico can not own direct (fee simple) title to real estate located therein. They can however hold the title thereto via the long term irrevocable bank title transfer trust or via a Mexican corporation (depending upon the use of the property). In the trust the Mexican fiduciary bank holds the title for the foreigners and…
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MEXICAN CORPORATION VS. BANKTRUST

MEXICAN CORPORATION VS. BANKTRUST

Bank Accounts, FAQ, Mexico, Money, News
Advantages of Mexican corporation vs. banktrust for real estate ownership There was once a time that Canadians or Americans were restricted from buying property in Mexico that was 50 km from any coastline or 100 km of a neighboring country. This zone meant that nobody other than Mexican nationals were allowed to invest in lands located within these areas. However, times have changed and the coastal and border areas that used to be restricted from foreign investment have opened. This occurred when the government decided to start issuing something called a fideicomiso, which is basically a banktrust. The fideicomiso was created to allow foreign investors to participate in Mexico´s rapidly expanding sectors while exercising complete and legal control over their investments while complying with Mexico’s investment laws. A banktrust is…
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Purchasing Mexico Real Estate with Real Estate Financing

Purchasing Mexico Real Estate with Real Estate Financing

401k, Bank Accounts, FAQ, Mexico, Money, News, Retirement
Purchasing Mexico Real Estate is an exciting decision, and with the growing and increasingly successful cross-border mortgage industry that has been developing in Mexico over the past few years, there are now more options than ever to finance your home! Mexico has historically been a cash-based economy, but with the influx of investment by foreigners, financing has become a viable alternative.  Many US lenders and banks have turned to the Mexican market, and their previous US experience makes the process more familiar than if one were to finance directly through a Mexican bank. For some people, the introduction of financing into the Mexican real estate market represents the opportunity to pursue a dream that may not have otherwise been tangible.  For others, obtaining cash to purchase a property may never…
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