Legal Considerations for Visiting Mexico
and/or
Purchasing Real Estate in Mexico
(Baja Sur Specific)
Introduction
The following information is a not a legal
opinion. It is highly recommended that you further research laws: 1) regarding visitations to Mexico; and, 2) prior to purchasing real estate in Mexico (it is advisable to work with an established and trusted realtor when purchasing real estate).
Once you select the real estate you desire to purchase, you may begin your purchasing process by executing various purchasing documents; in this case, forms from Land’s End Realty. (click to review forms)
Entering and Exiting Mexico Properly
Upon entry into Mexico, one must remember you are entering a foreign country. Laws governing visitations and immigration are different from your country or origin. What you think (should or should not be) does not matter; Mexican law does! Mexico’s officials are very respectful to visitors; but they do require you to obey their laws.
Passport requirements:
• A valid US Passport is not required to enter Mexico by automobile or on foot; but
• A valid US Passport is required to re-enter the USA*
• A valid US Passport typically is required to board a flight to Mexico
*visitors from other countries should check their country’s laws
Tourist VISA
• A Tourist VISA is required if you are traveling by airplanes or boats*
*forms are issued on the plane or boat
*certified at destination airport or harbor
• A Tourist Visa is required if you are driving more than 90 miles into Baja*
*forms issued and certified on the Mexican side of the border
FM3 is required (similar to an annual visa)
• An FM3 is required for a foreigner to work and earn money in Mexico
The following information related either directly, or indirectly, to the purchase of real estate in Mexico by a foreigner:
Bank Trust or “Fideicomiso” (click here for more information)
• A Bank Trust is required when foreigners purchase real estate
• The Bank Trust is handled in the normal course of the purchase
• A Bank Trust “Fideicomiso” is legal, binding and the guaranteed way to purchase
Taxes Related to Real Estate Purchases
• One must pay Sales Tax when purchasing Real Estate
• The equivalent of “capital gains” tax is collected when you sell you property*
*proper declaration of value upon initial purchase paves the way to paying less tax when you re-sell you real estate!
Corporate Real Estate purchase*
*differs substantially from an individual real estate purchase
US Title Insurance
• Not required for Real Estate Purchase*
*available on some property, not on others – verify with your agent
Bank Accounts in Mexico*
• You may open a bank account
• You must have a valid Passport
• You must have an FM3
*there is no requirement for you to have a bank account in Mexico to purchase real estate; however, many frequent visitors and/or foreign residents do open accounts.
Income Tax
• Must be paid in both Mexico and the US, if you work in Mexico and are paid in Mexico
• US Social Security is not taxable in Mexico
More about buying Real Estate in Mexico
