WHAT IS A FIDEICOMISO?
Fideicomiso is a bank trust created in order to comply with the provisions of Article 27 of the Mexican Constitution in which foreigners are limited in acquiring the direct title to the property in the restricted zone.
ARE THERE ANY DISADVANTAGES OF SETTING UP A MEXICAN CORPORATION?
The accounting requirements of a corporation can be tedious. Business owners and corporations must report monthly and annual financial activities and file reports as well as conduct annual shareholders meetings.
HOW MANY PROPERTIES CAN BE OBTAINED THROUGH A MEXICAN CORPORATION?
There is no limit to how many properties a Mexican corporation may own.
REASONS TO INVEST IN MEXICO
Strength in the US dollar. Both the US and Canadian dollars have been at all-time highs against the Mexican peso, which equals fantastic advantages for investors, the same factor is true for the eurozone against the Mexican peso. From real estate investment to everyday expenses and cost of living, Mexico offers unbeatable value compared to other popular investment or vacation destinations around the world.
Cultural familiarity. Mexico is a close neighbor to the United States and Canada, sharing many cultural traditions and other similarities. From the food (and the mezcal-tequila!) to the shopping and activities, there is a bit of an American influence in Mexico, just as there is a lot of Mexican influence north of the border.
7% – 10% Return on Investment. In hotspots such as commercial and tourist destinations, offering 7% – 10% ROI, which outperforms the stock market and also offers a hedge against inflation. As for other sectors like oil and gas 10-20%, some higher returns in real estate funds are expanding in Mexico, especially in mixed real estate developments.
Easy access. The most popular places in Mexico also offer easy access to the main international airports, which offer a large number of connecting flights to cities around the world. This makes it easy to travel back and forth, which also makes it possible to achieve 80-90 percent annual occupancy rates in places like the Rivera Maya or business cities like Mexico City, Monterrey, and Guadalajara.
English-Local & Expats. You don’t speak Spanish? No problem! More than 1 million Americans now live in Mexico full or part-time, which is easily the largest expatriate population of any part of the world, and more than 1.6 million Canadians visit Mexico each year. Also, there are plenty of English-speaking locals, including professionals.
Property values will not depreciate. The real estate market in Mexico, Monterrey, Guadalajara, and Cancun is among the 10 fastest-growing real estate markets in the world and demand is easily outstripping supply.
Modern infrastructure. From high-speed internet and major highways to excellent medical facilities, international schools, and major brand-name businesses.
Quick residence and stays without a six-month visa. The process is quick and easy for both temporary and permanent residents. Another option is to get a six-month tourist visa instead, which is also easy to renew.
Mexico is one of the most competitive countries for productive investments in the world due to many factors, such as: Competitive costs, with a young and talented population, size and strength of its internal market, macroeconomic and political stability, economic growth, capacity to manufacture high-tech products, an open economy that guarantees access to the world’s most important markets through a network of free trade agreements, according to the 2017 World Investment Report published by the United Nations Conference on Trade and Development (UNCTAD), in 2016, Mexico ranked 16th as a recipient of foreign direct investment and 7th among developing economies. This report includes a survey applied to the main corporations from around the world that place Mexico as the ninth destination within their investment perspectives for the period 2017-2019.
Furthermore, foreign direct investment flows have had a favorable performance during the last 10 years, with a total amount of USD 330 billion in the period 2008-2018, destined mainly for the manufacturing, financial, mining, commercial, construction, and construction sectors, real estate, tourism, media, professional services, and transportation.
WHY INVEST IN OAXACA?
Oaxaca is among the most important tourist destinations in Mexico and is today an important destination for foreign and local investors.
WHAT MAKES OAXAXA AN IMPORTANT PLACE FOR REAL ESTATE INVESTMENTS?
Oaxaca has 3 very important tourist destinations that register significant growth in real estate developments year after year due to the high demand for visitors, the city of Oaxaca registered in the whole year 2021 the amount of 1,407,945 visitors, leaving an important economic benefit of 2,826 million pesos.
The most popular places in the city of Oaxaca and nearby areas for tourists are Monte Albán, Mitla, Hierve El Agua, Barrio de Jalatlaco, Barrio Xochimilco, Santo Domingo, Zócalo, El Tule, La ruta del mezcal.
Another important destination in the state of Oaxaca is Huatulco, a destination with 9 bays and a significant growth in modern real estate developments that are mainly occupied by foreigners. Huatulco registered in the whole year 2021 a figure of 1,725,901 visitors with a significant economic benefit of 5,077 million pesos.
Finally, another favorite destination among young locals and foreigners is Puerto Escondido, a place with impressive beaches and a wild style due to the big waves that form on its main beaches.
Puerto Escondido received in the entire year 2021 about 1,072,192 visitors with an economic perception of 1,356 million pesos. Its main places to visit are Carrizalillo, Punta Zicatela, and Zicatela. However, there are nearby destinations such as Mazunte and Zipolite that are very popular.
HOW IS REAL ESTATE IN MÉXICO?
The real estate market in Mexico is booming. In 2022, the market grew by 12%, and it is expected to continue growing in 2023. There are several reasons for this growth, including:
A strong economy: Mexico’s economy is growing at a healthy pace, and this is attracting foreign investment.
A favorable exchange rate: The Mexican peso is currently trading at a low value against the US dollar, which makes Mexican real estate more affordable for foreign buyers.
A growing middle class: Mexico’s middle class is growing rapidly, and this is creating a demand for housing.
A diverse range of properties: Mexico has a wide variety of properties to choose from, including beachfront homes, condos, and villas.
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