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FAQ
Questions you should ask before buying you home in México
Fred Coffin, your realtor, greeting you from the Riviera Maya. I have helped many families, buy their homes here in this paradise, located in the Caribbean part of Mexico.
If you are starting your search for your second home or rental property in Mexico, this information will help you understand and prepare your steps. Here are a few questions you should ask before buying your home in Mexico.
Can a non-Mexican buy & title a property in Mexico?
Yes, you can buy & title any property in Mexico. If the property is located in a restricted area you will need to use a bank trust (in Spanish Fideicomiso) or open your Mexican LLC.
What is a restricted area in Mexico?
A restricted area is located within a 100-kilometer strip along the land borders, and also those that are within a 50-kilometer strip along the beaches. This requires a trust.
How much should you expect to pay for the bank trust or to open my Mexican LLC
The initial cost to open a bank trust is around USD 2,200 and then USD 500 every year to renew it. To open a Mexican corporation will have a similar initial cost, but the process might take up to 3 months.
Is the Riviera Maya a restricted area?
Yes.
Where is Riviera Maya and which areas does it include?
The Riviera Maya is the area located between Puerto Morelos and Tulum. Here are the most popular area located within The Riviera Maya: Puerto Morelos, Playa del Carmen, Akumal, Puerto Aventuras and Tulum
Do you need a residency or Mexican Citizenship to own a property in Mexico?
No, you don´t. You can live in Mexico using a tourist visa follow immigration laws, and also own your home here.
Do you need to open a Mexican bank account to buy a property in Mexico?
No, you can use any bank account out of Mexico.
How much should you expect to pay for the closing costs?
I usually get my clients a direct and personal legal assistant that is taking care of all the legal issues and costs during the purchasing process. The closing costs are around 9% of the purchase price and include notary costs, taxes and legal fees.
How much is the property tax in Mexico?
In Mexico the property tax (Predial) is very low compared to other areas in the world like the USA or Canada. Here in m{exico, the property tax is less than 1% a year. You expect to pay around USD 300 yearly tax (±)
What will be the process of selling your property?
The selling process is very similar to the one in the US r Canada. You need to find a realtor to list your home, and then when you and your buyer agree on the terms you will need to hire a lawyer to help you prepare a contract that will set the terms of this transaction, and open a escrow account if needed. When the terms are set and the money is in your account you will be required to pay your capital gain tax (30%) and the comission to your realtor.
Who is paying the realtor´s commission, the buyer or the seller?
In the Riviera Maya the seller is paying the realtor commission. The standard commission is 6%.
Can I pay in cash instead of a wire transfer?
Yes you can. The law states the maximum cash amount that is allowed in a real estate transaction, as of 2024 this amount is $874,274.25 pesos ($425,000 USD ±)