This is a tax paid on the sale value of the home and is approximately 2% depending on the area in Mexico in which you are buying. This tax is collected when a property is sold, transferred, donated, placed into trust, split or merged.
Appraisal Tax
The Tax Authorities in Mexico may want to perform an appraisal of the property after you have purchased it. If the appraisal value is greater than 10% of the price you paid, you could be asked to pay 20% tax on the difference.
Catastro
The property value
Certificado de Libertad de Coravamenes
No liens certificate
Certificado de No Adeodos
Current property tax certificate
Clave Catastral
Tax ID for the property
Convenio de Compra/Venta
Sale agreement
Escritura
Deed
Fideicomisario
Beneficiary
Fideicomiso
The fideicomiso, mandated by Mexican law, is the instrument which allows foreigners to purchase property in the Restricted Zone (see below) of Mexico. The bank holds title to the property in trust for the beneficiary who has the right to the use and control of the property. The trust, held by a Mexican bank, is renewable every 50 years and can be transferred or sold much like any other real estate.
Foreign Office Permit
Mexico’s Department of Foreign Affairs must issue a permit of authorization each time a fideicomiso is established or transferred. The fee for the permit is approximately US$150.
Forma Migratoria
Official Residence Permit
General Hipotecaria, S.A. de C.V. Sociedad Financiera de Objeto Limitado
The Financial Institution
Notario
The Notario is an appointed government official and a lawyer. He or she acts as a Title Agent would in the U.S. and is responsible for the collecting and disbursing of government fees. The Notario will also establish the fideicomiso. Notario’s fees are generally 0.5% to 1.5% of the transaction.
Registro Publico’s Seals
Registered in Public Records
Registry Fee
The fee to have the Public Registry updated after you have purchased property. Typically 1.3% of the transaction amount.
Restricted Zone
Includes any real estate within one hundred kilometers (60 miles) from Mexico’s borders and fifty kilometers (30 miles) from the coastline and all of Baja California. Applies only to foreign nationals.
