Autor: silmexico

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Can I buy a property on the beach as a foreigner in Mexico?

FOTO: CUATUNALCO BEACH
April 17, 2024 Sales Department  

Mexico is a country rich in culture, customs, traditions, and has unmatched gastronomy among exceptional drinks and dishes. In addition, it has many cities that are a great tourist attraction for people from all over the world. This attraction, together with the peculiar, more relaxed lifestyle, generates in some people the desire to invest in property and start a life in this impressive country.

 

The above opens space to a very popular question: can I acquire property in Mexico as a foreigner? And the answer is yes. Foreigners can purchase property in Mexico, including beachfront properties. However, it is important to mention that there are certain areas considered “restricted zones”, which have some restrictions for foreigners and a trust is required to purchase.

 

The decision to purchase property in Mexico through a Mexican company or trust will depend on several factors, including your financial and personal objectives, as well as the specific regulations and restrictions in the area where you wish to purchase.

 

A trust (called a real estate trust or “bank trust”) is a common option for foreigners, especially in restricted areas, as it allows the acquisition of property with legal protections. However, a Mexican company can also be a viable option, depending on the legal and tax structure that best suits your needs.

 

Therefore, it is advisable to consult with a real estate expert or an attorney specialized in foreign property laws in Mexico to obtain personalized advice on which option would be ideal for you and your needs.

 

At SILMÉXICO we have a team of professionals who are experts in real estate, foreign property laws in Mexico and the incorporation of Mexican companies. Feel confident that we will advise you here to help you make the best investment decisions in Mexico.

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Puis-je acheter une propriété sur la plage au Mexique en tant qu’étranger??

FOTO: CUATUNALCO BEACH
mercredi 17 avril 2024 Sales Department

Le Mexique est un pays riche en culture, coutumes, traditions et possède une gastronomie inégalée parmi des boissons et des plats exceptionnels. En outre, elle compte de nombreuses villes qui constituent une grande attraction touristique pour les personnes du monde entier. Cette attraction, associée au style de vie particulier et plus détendu, génère chez certaines personnes le désir d’investir dans une propriété et de commencer une vie dans ce pays impressionnant.

 

Ce qui précède ouvre la voie à une question très populaire : puis-je acquérir une propriété au Mexique en tant qu’étranger ? Et la réponse est oui. Les étrangers peuvent acheter des propriétés au Mexique, y compris des propriétés en bord de mer. Cependant, il est important de mentionner qu’il existe certaines zones considérées comme des « zones réglementées », qui comportent certaines restrictions pour les étrangers et qu’une fiducie est nécessaire pour acheter.

 

La décision d’acheter une propriété au Mexique par l’intermédiaire d’une société ou d’une fiducie mexicaine dépendra de plusieurs facteurs, notamment de vos objectifs financiers et personnels, ainsi que des réglementations et restrictions spécifiques à la région où vous souhaitez acheter.

 

Une fiducie (appelée fiducie immobilière ou « fiducie bancaire ») est une option courante pour les étrangers, notamment dans les zones réglementées, car elle permet l’acquisition de biens avec des protections juridiques. Cependant, une entreprise mexicaine peut également être une option viable, selon la structure juridique et fiscale la mieux adaptée à vos besoins.

 

Il est donc conseillé de consulter un expert immobilier ou un avocat spécialisé dans le droit des biens étrangers au Mexique pour obtenir des conseils personnalisés sur l’option qui serait idéale pour vous et vos besoins.

 

Chez SILMÉXICO, nous disposons d’une équipe de professionnels experts en immobilier, en droit de la propriété étrangère au Mexique et en constitution de sociétés mexicaines. Soyez assuré que nous vous conseillons ici pour vous aider à prendre les meilleures décisions d’investissement au Mexique.

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Benefits of listing your property with SILMÉXICO

Martes 27 de febrero 2024 By Verónica González Sales Assistants

SILMÉXICO is a passionate company, with experience and dedication to real estate. We go beyond traditional real estate services: we create real estate solutions in order to prepare our clients for their next step, which is to invest in the City of Oaxaca. Among all the services offered at SILMÉXICO is listing properties for rent or sale.

But… What does it mean listing a property?

In the real estate field, “listing” a property refers to adding said property within the catalog of one or more real estate agencies to provide promotion and dissemination through different media in order to sell or rent it by the owner. Each real estate agency will establish terms and conditions, as well as commission percentages to carry out the listing.

Benefits of listing your property with SILMÉXICO

  • PROFESSIONAL TEAM: We have a team of professionals ready to guide you towards making the best decisions for you and your property.
  • CLIENT PORTFOLIO: We have a large client portfolio where 90% of them are foreigners looking to invest in Mexico.
  • CERTAINTY: We seek to do more and make money with safe real estate investments that do not leave our clients vulnerable to the fluctuations of the stock market.
  • DUE DILIGENCE: We carry out the due diligence process in each of our transactions to ensure that both the seller and the buyer have all their documentation in order.
  • COMPLETE STRATEGY: We offer a comprehensive marketing strategy to promote the property. Within this we include: market study of the area, promotion and dissemination of the property on all our platforms (websites and other paid platforms such as Craigslist, Vivanuncios, Mondilion), social media strategies, exhibition in showroom windows, digital exhibition, Customer profiling, monthly report of interested customers and visits.
  • MONITORING UNTIL THE CLOSING OF THE OPERATION: Our services include monitoring until the closing of the sale/rental of your property.
  • LEGAL CONSULTING: This includes letter of intent, contracts and negotiation support.
enlista tu propiedad
PICTURE: XICO’S OFFICE IN OAXACA DOWNTOWN

Our experience in Real Estate in Mexico has been recognized in The New York Times, Financial Times, Forbes, among others thanks to our valuable knowledge in the area.

We are part of the most prestigious real estate associations in the country and the world, such as AMPI, NAR, FIABCI, among others. However, our business network has been built with our constant real estate transactions that allow us to interact with clients of different needs, levels and nationalities.


Do you need advice to list your property? You can contact us on our website www.silmexicooaxaca.com  or at any of our offices:

SILMEXICO Centro 

Xicoténcatl 120, Centro, 68000 Oaxaca de Juárez, Oax. 

Tel. +529515158957

 

SILMEXICO Reforma

Sabinos 711, Reforma, 68050 Oaxaca de Juárez, Oax.

 

SILMEXICO Huatulco

Bahía de Santa Cruz, Blvd. Benito Juárez Manzana 2 Lote 4, Santa Cruz Huatulco, P Chahue, 70987 Crucecita, Oax.

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THE NEW OAXACA-PUERTO ESCONDIDO HIGHWAY

Wednesday, February 20, 2024 By Verónica González Sales Assistant

After more than 15 years, the wait is over and on February 4, the 104.3-kilometer work of the Barranca Larga- Ventanilla highway was inaugurated. This new highway will shorten the distance between the state capital and the Oaxacan coast, going from 6.5 hours to only 2.5 hours.

 

This project required an investment of 13 billion pesos and with its start of operations it will benefit the more than 500 thousand inhabitants of the 50 municipalities of this region. The construction of this highway also generated an economic impact of 1,800 direct jobs and 3,500 indirect jobs. It is expected that after its opening there will be traffic of around 4 thousand vehicles per day.

New highway Oaxaca-Puerto

The road from the Oaxacan capital to Puerto Escondido is made up of two parts. The first part runs along Federal Highway 175 0axaca-Puerto Ángel in a route of 70 kilometers. A booth at this point marks the beginning of the second section for 104 more kilometers, during which there are 15 access junctions for the surrounding communities. The route has bridges, 3 viaducts, 3 tunnels, 114 crossing structures and finally ends at the beach. It is important to mention that the road will be free during the first year after its opening.

 

Without a doubt, this new highway will be a very important trigger for the tourism sector, since the travel time from the capital to the beach destinations on the Oaxacan coast will be reduced: Huatulco, Puerto Escondido, Zicatela, Mazunte and San Agustinillo, among others. The above translates into much more influx of visitors, more productive investment, economic growth and more jobs for the inhabitants of the area.

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TYPES OF CONSTRUCTION WORKS IN MEXICO

Friday, December 1, 2023 By Jessica Hernández Sales Assistant at SILMÉXICO  

In Mexico, as in the rest of the world, there are different types of construction works, each one requires different planning and materials according to its use, so in the following blog, we present the different types of buildings in the country. 

Public construction

This type of structure refers to those that are financed by governmental institutions, whose objective is the benefit of a whole community, seeking to cover the needs of the population. These include highways, streets, railroads, water distribution systems, hospitals, fire stations, courthouses, parks, and other works that correspond to the federal, state, or municipal governments.

Residential construction

These are those buildings with housing purposes, reduced to the term “house”, within them, there are different types, depending on their design, size, etc., such as villas, condos, apartments, townhouses, or traditional houses.

Commercial Construction

Designed for economic exchange between members of society, through the location of businesses. These are divided into shopping centers, warehouses, as well as offices, and industries. Within this type of construction, activities of buying and selling products and/or services are carried out.

Industrial construction

These buildings are built for manufacturing or product distribution purposes, precisely because of these functions, these types of buildings should be located away from urbanization, for greater safety, since they contain machinery and/or use hazardous chemical components.

Construction of green areas

This refers to all those areas whose objective is to promote environmental care, such as parks, gardens, and green surfaces in general, in which the protagonists are plants, recycled materials, and eco-friendly.

 

Other types of construction include cultural construction focused on educational and entertainment activities, which are built with stages and noise-insulating materials. As well as sports, for physical recreation, such as gymnasiums, swimming pools, running tracks, stadiums, etc. Built with concrete structures and profiles. 

 

If you are looking for advice for your next construction project, in SILMÉXICO we have a team of professionals specialized in this area, who will advise you on the design and execution of the project, as well as the materials needed according to your type of work. You can contact us at info@silmexico.com. 

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ARCHITECTURAL TRENDS FOR 2024

By Jessica Hernández Sales Assistant at SILMÉXICO

The year 2024 is just around the corner, people and their needs will not be the same as those of the year that is about to end, also, the advancement of technology and weather conditions, as well as the economy will present different characteristics. It is exactly the same in the field of architecture and construction, which seek to adapt year after year to these changes. That is why it is necessary to know about the trends for the coming year in the architectural field. 

Undoubtedly, architecture and construction will be focused on the welfare of people and low environmental impact for the care of the environment, following this line some of the trends are as follows:

Micro living and greentecture:

Microliving is based on the idea that the square footage of the home does not define its value and functionality, its central location is what characterizes this type of housing, which is why especially young travelers, as well as investors, are those who prefer it. Greentecture is complemented by micro-living with a sustainable approach to urbanism, bioclimatic criteria, and self-sufficiency.

Biophilic design

A trend that incorporates nature in interior design will also be present in 2024. This will focus on the design of interior spaces that give the feeling of being outdoors, nature-inspired lighting, and inclusion of plants. To learn more about biophilic architecture read our blog BIOPHILIC ARCHITECTURE: THE NEW TREND IN REAL ESTATE DEVELOPMENTS IN OAXACA.

Industrial Style

It is defined by asymmetrical shapes in construction, both in residential buildings and in other urban infrastructures. It is characterized by the combination of iron, wood, aluminum, and even recycled plastic, which reduces construction costs.

Domotic architecture

Technology will be present in buildings and homes since alternatives to control temperature, light, or building security are increasingly in demand. This type of architecture is an excellent economic and environmental option, since in addition to making certain activities more efficient and reducing energy consumption, which has a positive impact on bills, it is also the result of raising awareness of responsible consumption.

Floors, walls, and more

These parts of the buildings will be protagonists of architectural design in 2024, betting on ecological options, as well as designs in marble, imitation wood, clay, coatings in textures and colors of the new minimalism, which now goes beyond black and white, or polished cement. 

Kitchens will also be given greater importance, their design will focus on spaciousness and connection with the dining room and living room, as well as the installation of a central island and breakfast bars.

If you are interested in receiving advice on the design of your new project, write to info@silmexico.com and receive personalized advice on the development of your new real estate project.

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IN CASE OF DECEASE, WHAT WOULD HAPPEN WITH MY PROPERTIES IN MEXICO BEING FOREIGNER?

By: Madison Ashley
Legal Intern, SILMEXICO
A Bridgewater State University student, Legal Intern, and currently a member of the Research Center of SIL MEXICO.

What is patrimony?

Patrimony is all the things bought and owned in a person’s life. It is a collection of all possessions. Patrimony can be in the form of real estate, vehicles, clothing, jewelry, and several others. When a person dies, their possessions need to be determined who or where they will go. This is a succession that can either be determined by a will or a person deemed close to the deceased. There are ways to protect patrimony and allocate the possessions accordingly. For example, wills are the best way to detail where all belongings will go upon the death of the owner. This way, the possessions are not up for debate, and it makes the probate process faster.

Breakdown of inheritance

Inheritance is decided by a specific principle. The relative that is deemed the ‘closest’ is first in line to the inheritance. There are numerous examples of exceptions: 

    • “Where there are surviving children of the deceased but no surviving spouse: the estate is divided among the children in equal portions.
    • Where the deceased has a surviving spouse and surviving siblings: two-thirds of the estate is received by the surviving spouse, and the other third is divided in equal parts among the siblings. 
    • Where the deceased has surviving siblings only: the siblings inherit in equal portions.
    • No closer relatives survive: the closest relatives up to the fourth grade inherit in equal portions.” (Pavon, 2017) 

This is another example of why wills are helpful. If the breakdown of inheritance is specified in the will, the wishes of the deceased can be honored, instead of acted upon what is standard. 

What happens if I die, and I don’t have a protected vehicle? And if I do?

When you die, any non-land assets will be passed through an estate. This procession goes through the same process as any other patrimony. Additionally, if the car is unprotected or has a loan, it will become part of the estate of the deceased. The assets from the patrimony can be used to pay off the debt of the loan as well.

What is the best option?

The best option for foreigners who own property in Mexico, or have other assets in Mexico, is to create a Mexican will. Even though they could be a resident of another country, having a will for the assets per country will save lots of time and money. Without a Mexican will, the foreign will is going to have to go through a double-probate process. This is really expensive and can take years for Mexico to recognize. Instead, the better option is to have a Mexican will that handles Mexican assets, to avoid double probate expenses.  

To obtain a Mexican will there are three steps. First, an official court-approved translator must translate the will into Spanish. It also must be apostilled in the country where it is. Lastly, since Mexico does not have survivor rights, the surviving spouse might not automatically inherit the property. Therefore, it is important to outline specificities accurately (Pavon, 2017). Another important piece of information is that “property held through a bank trust is not included or referred to in a will made in Mexico. For other property including real estate that is not held within a bank trust, a Mexican will identifies the beneficiaries and specific legatees and appoints an executor who administers the property until it is transferred to the heirs and assist the notary with the process.” (Pavon, 2017). 

Overall, the best option is to obtain a Mexican will for any assets in Mexico.

References

Pavon, M. (2017, September 14). Who Will Inherit Your Property in Mexico? MEXLAW. https://mexlaw.com/will-inherit-property-mexico/

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WHAT IS THE ESCROW CONTRACT?, WHAT IS IT FOR?

By Juan Luis Santiago Law student, Junior Lawyer in the Legal Department, and currently part of the Real Estate Legal Research Center. 

Given the current boom in the real estate sector, it has become necessary to contemplate different protection alternatives or to guarantee transactions concerning property rights, such as the sale and acquisition of real estate.

This is where the “Escrow Contract” comes in as one of the most efficient means of guarantee in the real estate world.

Who is involved in the escrow contract, at the moment of carrying out a real estate transaction? 

The parties in this type of contract are:

    • The Seller. – Holder of the property, with the necessary legal capacity to dispose of the real estate object of the operation.
    • The Buyer. – A person with sufficient legal and economic capacity to acquire the real estate object of the transaction.
    • The Escrow Agent. – Natural or Moral Person (through the representative), that will act as an intermediary concerning the economic resources within the real estate operation.

What is the Escrow Contract?

To conceptualize and give a function to this type of contract, we must start from the premise that the “Escrow” within the Mexican legislation is not contemplated, that is to say, it is an atypical contract, not regulated, which does not require any formality of structure, so that different jurists within the field of contract law, have defined this, as the agreement of wills made expressly, by which the parties (Seller and Buyer) entrust to an intermediary “Escrow Agent” each one of the economic resources coming from the real estate, to act as an impartial guarantor, who will retain such resources until the contractual obligations of the purchase and sale expressed by the parties are fulfilled.

And, if it is not regulated, what legal certainty does it offer?

Although it is considered an atypical contract, this does not mean that it is somehow illegal or inefficient (regarding its legal validity), on the contrary, it means that it does not require any formality more than those of any other type of contract regulated by law, so the will of the parties will prevail before any instance, and doing it expressly will be enough to give it its certainty.

That is why SILMÉXICO offers this type of contract to its buyers and sellers belonging to its portfolio of collaborators so that each one of their transactions is carried out most efficiently without at any time harming or jeopardizing the property rights of the parties. 

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SAFETY MEASURES IN MEXICO FOR CONSTRUCTION

Tuesday, November 7, 2023 By Jessica Hernández Sales Assistant at SILMÉXICO  

The construction sector is considered one of the most risky in Mexico; in the last ten years alone, more than 31,000 accidents have been registered in this industry alone. 

According to data from the Mexican Social Security Institute, from 2012 to 2021 there were approximately 1,846 deaths of construction workers. 

Some of the most common occupational hazards are:

    • Falls to the same level. 
    • Blows and cuts.
    • Falls to different levels. 
    • Fall of objects by collapse. 
    • Entrapment by or between objects. 
    • Stepping on objects. 
    • Collisions against moving objects. 
    • Projection of particles. 
    • Burial.
    • Collisions. 
    • Risk of fire and explosion. 
    • Electrical risk.

To avoid as much as possible the incidence of these and other occupational hazards in construction, basic safety standards have been created and must be strictly followed to avoid minor accidents and, of course, extraordinary situations such as fatalities. Developers or persons in charge of construction sites must ensure that they provide their workers with the necessary conditions to safeguard their physical integrity. These conditions, in addition to including all types of employees entering the construction site, must also cover visitors. 

These measures are divided into 4:

1. Safety and Hygiene Measures for Workers

In the work areas some activities imply a lack of hygiene, so workers must recognize, evaluate, and control the agents to which they are exposed to prevent discomfort or illness. It is essential to have drinking water for hand washing, a specific place to store tools and equipment, a container for waste, a bathroom, a clean place for food consumption, and a first aid kit.

2. Safety and Hygiene Measures in Work Areas

Safety and hygiene measures must be promoted and implemented to help guarantee the safe performance of work at the site, such as the use, inspection, cleaning, and maintenance of tools and construction equipment within the work areas, which requires delimiting habitable areas of the site, using basic protective equipment, not accumulating debris, clearing evacuation routes, keeping circulations clear, and storing tools and equipment in a specific place.

3. Basic and Specific Personal Safety Equipment

Personal safety equipment consists of those accessories or elements that are used on-site to protect workers during tasks that represent a greater risk and can damage their health and physical integrity. 

Basic equipment: helmet, vest, work clothes, and boots. 

Equipment for specific jobs (work at heights, use of tools and electrical equipment, and machinery handling): goggles, face shields, respirator, harness, earplugs, gloves, and overalls.

4. Previsions when carrying out Construction Work

Safety measures for the performance of specific jobs help prevent and reduce the risks to which all participants in the construction site are exposed: 

Use of tools and equipment: set aside a special area for each activity, and replace worn cutting elements. 

Working at heights: verify that safety equipment is in good condition, delimit the work area, and if scaffolding is used, verify that it is in good condition. 

Use of chemical substances: do not smoke near the storage of substances, avoid spills, and store them in a safe place.

In Mexico, these measures are established by the Official Mexican Standard NOM-031-STPS-2011, and their objective is to prevent the risks to which construction workers are exposed, in addition to ensuring an adequate work environment, the correct monitoring of the measures will ensure that the work is completed on time.

 

Are you looking for construction advice? Contact us to guide you through: 

info@silmexico.com. 

References

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What types of properties are there in Mexico?

Monday, November 6, 2023  

By Madison Ashley, Bridgewater State University student and legal Intern, she is currently a member of the Research Center of SIL MEXICO, and Thorvald Pazos Casas – Law degree from the Universidad Regional del Sureste, postulant attorney in criminal, civil, agrarian, and tax matters, and currently a research attorney and part of the Research Center of SILMEXICO.

 

In Mexico, throughout its history and its intricate relationship with the land, there has been a long struggle for the recognition and equitable distribution of this right, a battle that has been fought since the times of Independence and the Mexican Revolution. As a result of this struggle, land ownership is a protected and regulated right in the Political Constitution of the United Mexican States, which grants it a special status and treatment.

The legal system in Mexico is based on the Roman-Germanic system, which implies the existence of a written law and doctrine as a source of law, being the Mexican Constitution the cornerstone of this system. Article 27 of the Constitution, which is found in the dogmatic section of the Constitution, recognizes the right to property as fundamental. The aforementioned provision recognizes that there is public, private, and social property in the national territory.

Article 27 of the Mexican Constitution states that “ownership of the lands and waters within the boundaries of the national territory is vested originally in the nation, which has had, and has the right to transfer title thereof to private persons thereby constituting private property” (Kelly, 1994). This means Mexico holds the legal basis of the land and its control of what constitutes private ownership and private possession.

From the foregoing, it is worth mentioning that the main regulation of property is found in the Mexican Constitution, and is supported by secondary laws for its legal regulation and tenure. Such as, in the case of private property, the Federal Civil Code or that of the states; for social property, there is the Agrarian Law; and for public property, it is based on the National Property Law.

The Kinds of Property in Mexico

There are three types of property in Mexico: private, social, and public.

Private

Refers to property that originated from the original ownership of the nation and was transferred to private individuals or entities. It is the right of individuals or legal entities to enjoy and dispose of their property, subject to the restrictions established by law. The Federal Government has the power to expropriate private properties that are considered notable due to their characteristics and manifestations, following the provisions of the law.

Agrarian

Also known as social, belongs to various agrarian groups and is subdivided into two categories: ejido property and communal property. Since 1992, with the enactment of the Agrarian Law, voluntary transition to full ownership is allowed, which means that through a certification process, it can be converted into private property and, therefore, be susceptible to sale. The key distinction in social property is based on the origin of land tenure. The ejido arose as a result of the allocation of land by the State to a group of peasants who lacked land and needed it for their subsistence. On the other hand, the agrarian community has its origin in the recognition by the State of land that belonged to a group of peasants since ancient times or in the restitution of land if they had been dispossessed of it in the past.

This difference is fundamental since the ejido is created as a measure to distribute land to those who need it, while the agrarian community recognizes the historical rights of a group of peasants over the land they have occupied and worked for generations. The two concepts reflect different approaches to land policy and its history in Mexico.

Public

Refers to the buildings and territory under the jurisdiction of the entities and agencies of the different levels of government (Federal, State, and Municipal). These properties are subject to regulations established by the General Law of National Assets in the federal government and by the laws of patrimony or assets of the federal entities. Access to and use of these public spaces are restricted and regulated, which means that to use a public space it is necessary to obtain a concession, and private individuals can only access public property through these concessions.

Several types of taxes involve property in Mexico. These include acquisition tax, annual property tax, rental income tax, value-added tax, capital gains tax, and income tax. Acquisition tax is paid for any property that is purchased; the tax levels differ, but it can range anywhere from 2% up to 4.5% of the value of the property at the time of purchase (Ortega, 2023).

References

  • History of the National Agrarian Registry of Mexico. (2022, April 19). Mexicanist. https://www.mexicanist.com/l/history-of-the-national-agrarian-registry-of- mexico/
  • Kelly, J. (1994). Article 27 and Mexican Land Reform: The Legacy of Zapata’ s Dream ARTICLE 27 AND MEXICAN LAND REFORM: THE LEGACY OF ZAPATA’S DREAM*.
    https://scholarship.law.nd.edu/cgi/viewcontent.cgi?article=1693&context=law_faculty_scholarship:~:text=Article%2027%20of%2
  • 0the%20Mexican%20Constitution%20states%20that%20%22%5Bo%5D
  • Ortega, O. (2023, April 17). Tax Implications of Owning Property in Mexico [2023 Policies]. RivieraMayaCozy.com – Your Place for Best Real Estate Deals in Rivera Maya.
    https://rivieramayacozy.com/tax-implications-owning-property-mexico/
  • Real Estate Law | Mexico | Global Corporate Real Estate Guide | Baker McKenzie-Resource Hub.(n.d.).
    Resourcehub.bakermckenzie.com.
    Retrieved
    November 3, 2023,
    from https://resourcehub.bakermckenzie.com/en/resources/global-corporate-real-estate-guide/latin-america/mexico/topics/real-estate-law:~:text=Land%20i tself%20in%20Mexico%20is