Mexico

Commission Structure

Comission in Mexico is between 5-6%. Exclusives are rare.

Applicable Real Estate Taxes

Real Estate tax (Predial) is very low (about .1%). But Closing costs are high6-8%. Non residents also have to be aware of Capital Gains taxes which can run as high as 25-30% for foreigners who are not exempt (Mexican Citizens and Residents who pay taxes in Mexico are exempt.

Where to Find Properties:

• Pueblos Loreto, Loreto, Mx, BCS 
• Puerto Escondido, Oaxaca, Mexico
• Puerto Vallarta, Jalisco, Mexico

• Cuernavaca, Morelos, Mexico- The Eternal Spring City.

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    One of Mexico best kept secret. Cuernavaca, known for it's superior climate, and beautiful gardens, has been a favorite vacation and second home resort town since the time of the Aztec. Today, it has grown into a true metropolis, featuring the best Mexico has to offer. Only 50 minutes from Mexico City, sprawled on the beautiful mountain slop, Cuernavaca has fabulous views of the volcanoes and spring like weather, year round. Cuernavaca also has many universities, and the largest number of scientist per capita than any Mexican cities. Traditionally, artist has choose Cuernavaca as a wonderful place to get away and work. Diego Rivera, Siquieros and many other famous Mexican artist had their studio in Cuernavaca and many modern Mexican artist choose to live there today. Cuernavaca has the largest number of Spanish Language schools in Mexico. It also has a thriving foreign community, and a very active Newcomers Club. The weather allows for year round out door sports, and there are currently 5 golf clubs (and a 6th under constructions) in Cuernavaca and it's surroundings, as well as many tennis clubs. Yet remarkable real estate prices in Cuernavaca are still very attractive compared to other more touristic destinations such as San Miguel de Allende, Puerto Vallarta or Los Cabos.

• Tepoztlan, Morelos, Mexico

  • One of Mexico 16 Magical Villages, only  40 minutes from Mexico City and 15 minutes from Cuernavaca.

    

Obstacles to Buying

•  Find a professional broker. Buying real estate in a foreign country is very diffent than in the states and Mexico is no exeption. Finding a good broker in Mexico can be challanging. There is no licensing for brokers as of yet, though that is changing. There is now a certification offered by the SEP (the Mexican Department of Education) which is certifying brokers who have been in the business for a long time. If you can not find a certified broker to work with, make sure they are affiliated with AMPI, the Mexican association of real estate professionals.
• The title of the property in Mexico is very complicated. There are three type of land regime in Mexico. Public, Communal and Ejidal (Community, and farm land respectively). Make sure the property your buying has a public deed. Your broker can help you with that. Buying title insurance is a good option.
• Capital Gain tax when selling a property can be expensive. Make sure you understand your tax status and implications. Not all brokers and notaries are comfortable working with foreigners and understand the tax implications. Make sure your broker does, and can help you minimize your tax burden.

Resources: 

• www.bajafairtrade.info
• www.casa-mayor.com
• http://www.internationalp ... rties.com
• http://www.remaxdelmar.com.mx 
• misty@remaxdelmar.com.mx
• www.vivoresorts.com
• www.pvcasas.com
• International Living Survey Mexico #1 for retirement
• Real Estate Title, S.C
• www.elterre.com (FSBO listings in Mexico English/Spanish site)