When you need personalized legal advice and practical support to apply for residency or investment in Mexico, our Associates can help.
Legal consultation and practical support to help you
The service begins with a personal consultation with our associate, to help you plan your application strategy, answer any questions you have, and identify the best route for residency and investment given your individual circumstances.
In addition to consultation and advice, the service provides practical help and support as you make your way through the procedures including:
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answering specific questions and concerns you may have
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Advice to help you structure your investment in the most efficient manner
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providing you with a checklist of all the documentation you’ll need to gather as part of your application;
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review of your documentation for accuracy and completeness;
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scheduling appointments at the Mexican consulate abroad and/or immigration office in Mexico, as relevant
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filling out the various application forms;
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writing the necessary letters (in Spanish);
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the support continues when you return to Mexico and exchange your visa for a residency card; and
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the service also provides ad-hoc advice and troubleshooting (if needed), as you move through the application
about Fideicomiso (Bank Trust)
All foreign individuals purchasing property in a restricted zone (within 100 km of the Mexican border or 50 km from the coast) must purchase the property using a fideicomiso (bank trust).
Fideicomisos should be considered by foreigners who:
✔ Will use their property for personal use (will not receive rental income).
✔ Are considering obtaining Mexican residency.
✔ Will rent their property for income and have Mexican residency.
If you plan on renting your property for income, you need to consider your Mexican tax obligations. One of the requirements for anyone earning income in Mexico is that you must declare any and all income with the tax authorities. To declare taxes, you must register with the authorities and obtain a Mexican tax ID known as an RFC. RFCs are only available for foreigners with Mexican residency, Mexican citizens, or Mexican corporations.
Some property owners without residency who rent their properties held in a bank trust do so via online rental companies such as Airbnb. However, without an RFC, the online rental companies are required to retain 36% in taxes.
If you are planning on renting your property but not planning on obtaining Mexican residency, you may want to consider the next option.
Our associate provides a highly personalized consultation to consider and formulate the best approach for your first-time investment in Mexico or residency application based on your individual circumstances.
Mexican Corporation
Another option for foreigners buying real estate is to open a Mexican corporation. By creating a Mexican corporation, foreigners can avoid the fideicomiso process as the property would be purchased by the Mexican corporation.
Mexican corporations should be considered by foreigners who:
✔ Plan to rent their Mexican property for income
✔ Plan to purchase more than one rental property
✔ Have no plans to obtain Mexican residency
When renting a property owned by a Mexican corporation, the corporation will be issued a Mexican tax ID (RFC) and make monthly income declarations. There is a lot more involved in owning a Mexican corporation so it is important to discuss this option in detail with one of our qualified Mexican attorneys.
Making a Decision
Whether renting your Mexican property for income or using it as a vacation destination for you and your family, it is important to know the options available to you.
It is also important to understand which option best fits your needs. You should always have a professional attorney discuss and review your options with you.
To learn more about which option is best for you, please contact the legal team at COLOMA Group. Our experienced team of professionals is best equipped to help you make the right decision.
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