Foreigners buying real estate in Yucatan is a growing phenomenon, for instance, people from all over the world are choosing Yucatan as their home.
A growing community of ex-pats and snowbirds is looking for a warm, safe, and affordable place to live. As a result, the Yucatan has a vibrant community of foreigners living full or part-time in the area.
Mexico is one of the top destinations for ex-pats. Besides, the close distance to North America makes it ideal for people from the USA and Canada to move back and forth.
Mexico is also considered one of the top locations to live as a foreigner, taking third place in the 2021 ranking by International Living.
Foreigners buying real estate in Yucatan: Is it possible?
There are a lot of rumors and confusion about the possibility of buying real estate in the Yucatan. The short answer is yes, moreover it is important to know the options to be able to purchase properties.
A foreigner can purchase real estate in Mexico, in a safe and convenient way. In addition, a foreigner can invest and have a business or more than one property o even have a business.
Ideally, you have to decide ahead of time what use you will give to your property and purchase it in a way that will allow you to
Buying real estate in Mexico: fideicomiso or a Mexican corporation?
The available options for buy real estate in the reserved area are either a bank trust (fideicomiso), also there is the option to create a Mexican corporation.
There a pros and cons, we made a short list of some of the characteristics for each one.
FIDEICOMISO / BANK TRUST
| It can be used for one property | ||
| The property can only be used as a personal residence | ||
| You can assign beneficiaries in case of the owner’s passing | ||
| The bank will sort out the permit and other legal issues | ||
| Convenience, you only pay once a year | ||
| In case of selling the property you pay less taxes ISR and CEDULAR |
MEXICAN CORPORATION
| It can be used to buy as many properties as you want | ||
| The properties can be used to generate an income: eg. airbnb, rentals, and other businesses you might start. | ||
| You can assign beneficiaries in case of the owner’s passing | ||
| As a Mexican corporation, you need to pay taxes in case of a revenue | ||
| Setting up and disolving the corporation takes time and money | ||
| In case of selling the property you are to pay more taxes, as a company pays IVA, ISR and Cedular taxes. |
I want to buy real estate in Yucatan, but I am not interested in getting a Fideicomiso or Mexican Corporation
Buying real estate as a foreigner can be a daunting experience, for this reason, many of our clients do not want to get involved in complicated legal and tax-related issues.
In the case of Valladolid, you do not need any of these legal and time-consuming formalities and certainly it makes it an ideal place to invest in real estate in the Yucatan.
We have experience helping foreigners find the ideal property for sale in Yucatan. Contact us for more information! We are the only agency with A.M.P.I. Trained and federally licensed realtors in Valladolid Yucatan.