Looking for residential beachfront property in Mexico? Want to know the laws about US citizens owning property in Mexico? Our guide gives you the facts & information you’ll want to know.
US citizens and other foreign national have been buying property in Mexico for decades, although the past few years have seen a real spike in interest when it comes to buying property in Mexico. There are a variety of reasons for this. Firstly, some places in Mexico, like Ensenada, Guadalajara, Cuernavaca Baja are being touted as property investment hotspots. With the current stagnation being experienced in the US property market exacerbated by the collapse in the sub prime market, more and more property investors are looking south of the border to Mexico for the next lucrative property boom. At the moment the hottest place to buy property in Mexico is the Costa Maya where the natural scenery is second to none, but property development is still in its infant stages.
Buying property in Mexico is also becoming a popular choice for many people wanting to retire in Mexico. Given the fact that the weather is better, healthcare is cheaper and so is the property, the prospect of retiring in Mexico is really quite a pleasant one. The Mexican government have made special provisions for people wanting to retire in Mexico and issued a specific non working visa that allows you t come and go from Mexico as you please.
Buying Property in restricted Zones in Mexico
Mexico have restricted zones where technically no foreign national can buy land or property within 50 miles of the coast or 100 miles of a Mexican land border. This is a quaint law going back to the early 20th century when Mexicans were scared that a foreign national might buy up land inside Mexico and use it as a staging ground for a foreign attack into the country. Although that fear is now long gone, the law which is enshrined in the constitution, is still valid. Fortunately there is a relatively easy solution to this should you wish to buy property near the beach in Mexico. You simply set up a corporation under your name and buy the property in the name of the corporation.
Mexico Property Taxes
Property Tax in Mexico is comparatively low to that in the US. The amount of tax is determined as a percentage of the price for which you buy the property. Even if your property sky rockets in value your tax payments will remain the same. The percentage used for property tax in Mexico varies although it’s generally around 0.01% of the value of the property at the time of buying.
