Mexico is an attractive option for real estate investors both from within the country and from abroad. When you look forward to buy real estate in Mexico, these five important tips will guide you with some key aspects.
Identify the right place
Depending on your objectives, you have several options to consider. Check some popular cities and suburban areas and choose the location wisely. Some of the fastest growing cities are endowed with high economic potential. Also, look at the living conditions in the places you like to consider along with their cultural and tourist importance.
Avoid investing in restricted zones
Foreign investors are not easily permitted to acquire properties in the regions demarcated as restricted zones in the country. These are terrains lying within 100 kilometers from the national borders and within 50 kilometers from the sea. Purchasing properties outside the restricted zones is a straightforward process and involves complying with the Mexican Government’s requirements. On the other hand, buying real estate in Mexico in the restricted zones will have to be done through a trust institution or bank trust and hence will involve additional procedures and documentation.
Get necessary permissions
Non-resident Mexicans and those who are not citizens of Mexico will have to get permissions to invest in real estate properties in the country. The authority to grant such permissions is the Ministry of Foreign Relations (SRE) in the General Directorate of Legal Affairs in Mexico.
Visa options
Depending on how much you want to invest in Mexican properties, you may apply for a resident visa to live in Mexico. Once you have purchased a property in the country, it is possible to get a temporary resident visa to acquire real estate. Temporary visa can be renewed once in 4 years and then you can apply for permanent resident visa.
Understand Mexico’s property taxes
The property taxes processes in Mexico are the same for locals and foreigners. There is no additional cost for properties purchased outside the restricted zone. Since you will incur writing and other kinds of expenses, working with a local real estate expert will help you approach the entire mission easily, systematically and successfully.
Take away
You need to take care of several things when you buy real estate in Mexico. Hence, it is always advisable to work with a good real estate firm in the region where you wish to invest in.
