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The type of structure you can build on your Mexican land will depend on the zoning regulations in the area where your land is located. However, some common types of structures that you can build on Mexican land include:

  • Residential homes: This is the most common type of structure that people build on Mexican land. You can build a single-family home, a condominium, or a townhouse.
  • Commercial buildings: This includes businesses such as restaurants, shops, and offices. You will need to obtain a permit from the local authorities before you can build a commercial building.
  • Agricultural buildings: This includes barns, sheds, and greenhouses. If you are planning to use your land for agricultural purposes, you will need to obtain a permit from the local authorities before you can build any agricultural buildings.
  • Recreational buildings: This includes swimming pools, tennis courts, and golf courses. You will need to obtain a permit from the local authorities before you can build any recreational buildings.

In addition to the type of structure, you will also need to consider the size of the structure when you are planning your build. The maximum size of a structure that you can build on Mexican land will be determined by the zoning regulations in the area where your land is located.

It is important to note that you will need to obtain a building permit from the local authorities before you can start building on your Mexican land. The process for obtaining a building permit can vary depending on the municipality where your land is located. However, you will typically need to submit a building plan to the authorities, as well as proof that you own the land and that you have the necessary permits.

Supervision is important in any construction project because it can help to ensure that the project is completed on time, within budget, and to the required quality standards. 

Some of the benefits of having proper supervision in a construction project in Mexico include:

  • Improved quality: Supervision can help to ensure that the work is done correctly and to the required standards. This can help to avoid costly repairs and rework down the line.
  • Increased safety: Supervision can help to identify and mitigate safety hazards. This can help to prevent accidents and injuries.
  • Reduced delays: Supervision can help to ensure that the project is completed on time. This can save the project owner money and avoid inconvenience for occupants or users of the building.
  • Improved communication: Supervision can help to improve communication between the project owner, the contractor, and the workers. This can help to avoid misunderstandings and ensure that everyone is on the same page.

Executive projects are a multidisciplinary task, which requires not only specialized labor but engineers, architects, accountants, and lawyers who specialize in the execution of construction projects, so that each aspect of the work is carried out in accordance with the contracts, financial ceilings, and project specifications. Having a comprehensive service in the construction administration will benefit communicating and monitoring of your project processes, avoiding downtime and delays in the execution in addition to the correct management of the resources destined for the work.

An executive project is important because it can help to ensure that a project is completed on time, within budget, and to the required quality standards. Executive projects are typically led by a senior executive who has the authority to make decisions and allocate resources. This can help to ensure that the project is properly managed and that any potential problems are identified and addressed early on.

Here are some of the specific reasons why executive projects are important:

  • They can help to ensure that the project is aligned with the organization’s strategic goals. Executive projects are typically initiated by senior executives who are responsible for setting the organization’s strategic direction. This means that executive projects are more likely to be aligned with the organization’s strategic goals than projects that are initiated by lower-level managers.
  • They can help to ensure that the project has the necessary resources. Executive projects typically have the support of senior executives, which means that they are more likely to have the necessary resources, such as funding, people, and equipment. This can help to ensure that the project is completed on time and within budget.
  • They can help to mitigate risk. Executive projects are typically subject to more scrutiny than projects that are initiated by lower-level managers. This means that potential problems are more likely to be identified and addressed early on, which can help to mitigate risk.
  • They can help to build consensus. Executive projects typically involve a wide range of stakeholders, such as customers, suppliers, and employees. This means that executive projects are more likely to build consensus and avoid conflict.
  • Overall, executive projects can help to ensure that a project is completed on time, within budget, and to the required quality standards. By leveraging the authority, resources, and support of senior executives, executive projects can increase the chances of success.

The price per square meter of property in Mexico varies for a number of reasons, including:

  • Location: The most expensive properties are located in major cities, such as Mexico City, Guadalajara, and Monterrey. Property prices tend to be lower in smaller towns and rural areas.
  • Demand: Areas with high demand for property, such as beachfront locations and tourist destinations, tend to have higher prices than areas with lower demand.
  • Supply: The availability of property in an area can also affect prices. If there is a limited supply of property, prices will tend to be higher.
  • Infrastructure: The quality of infrastructure in an area can also affect prices. Areas with good roads, schools, and hospitals tend to have higher prices than areas with poor infrastructure.
  • Current market conditions: The current market conditions can also affect prices. If the market is hot and there is a lot of demand for property, prices will tend to be higher.

Here are some examples of how the price per square meter varies in Oaxaca by location:

  • Centro Histórico: The historic center of Oaxaca City is one of the most popular tourist destinations in Mexico, and as such, property prices here are among the highest in the state. The average price per square meter in the Centro Histórico is around $2,000 USD. 
  • Santo Domingo: The Santo Domingo neighborhood is another popular tourist destination in Oaxaca City. It is home to the Santo Domingo Church and Convent, one of the most important colonial landmarks in Mexico. The average price per square meter in Santo Domingo is around $1,500 USD. 
  • Zona Urbana: The Zona Urbana is the most populous area in Oaxaca City. It is home to a mix of residential, commercial, and industrial areas. The average price per square meter in the Zona Urbana is around $800 USD.

It is important to note that these are just averages and the actual price per square meter can vary depending on a number of factors. If you are considering buying property in Mexico, it is important to do your research and get an estimate from a real estate agent.

A restricted zone in Mexico is an area where foreigners are not allowed to own property directly. This is because the Mexican government wants to protect its national security and sovereignty. The restricted zones are located within 100 kilometers of the border and within 50 kilometers of the coast.

There are a few exceptions to the restricted zone rule. For example, foreigners can own property in restricted zones if they have a Mexican residency visa or if they are married to a Mexican citizen. Foreigners can also own property in restricted zones through a fideicomiso, which is a trust that is managed by a Mexican bank.

If you are considering buying property in Mexico, it is important to be aware of the restricted zones. If you want to buy property in a restricted zone, you will need to work with a real estate agent who specializes in these types of transactions.

A Mexican fideicomiso is a trust that is used to allow foreigners to own property in restricted zones, such as beachfront property or property within 50 kilometers of the border. The property is held in the name of the trustee, who is a Mexican bank, and the beneficiary is the foreign buyer.

The fideicomiso is a popular option for foreigners who want to own property in Mexico because it allows them to have all the benefits of owning property, such as the right to use and enjoy the property, without actually owning the title to the property. This is important because foreigners are not allowed to own property directly in restricted zones.

The fideicomiso is a legal arrangement that is governed by Mexican law. The terms of the fideicomiso are set out in a trust agreement, which is a document that is signed by the trustee, the beneficiary, and the settlor. The trust agreement will typically specify the duration of the fideicomiso, the rights and obligations of the trustee and the beneficiary, and the terms of termination of the fideicomiso.

The trustee is responsible for managing the property on behalf of the beneficiary. This includes paying the property taxes, maintaining the property, and ensuring that the property is used in accordance with the terms of the trust agreement. The beneficiary has the right to use and enjoy the property, but they do not have the right to sell the property or to transfer the property to another person.

The fideicomiso is a flexible arrangement that can be tailored to the specific needs of the beneficiary. For example, the duration of the fideicomiso can be set for a specified period of time or it can be indefinite. The terms of the trust agreement can also be modified to reflect changes in the beneficiary’s circumstances.

In Mexico, a persona física is a natural person, or an individual. This is the opposite of a persona moral, which is a legal entity, such as a corporation or a partnership.

Personas físicas have certain rights and responsibilities under Mexican law. For example, they are required to pay taxes on their income. They are also entitled to certain benefits, such as social security benefits.

There are two main types of personas físicas in Mexico:

  • Residentes: These are personas físicas who live in Mexico. They are subject to Mexican tax law on their worldwide income.
  • No residentes: These are personas físicas who do not live in Mexico. They are only subject to Mexican tax law on their Mexican-sourced income.

If you are a foreigner who is considering doing business in Mexico, it is important to understand the difference between personas físicas and personas morales. You will need to determine which type of entity is best suited for your business needs.

Here are some of the key differences between personas físicas and personas morales:

  • Taxation: Personas físicas are subject to Mexican tax law on their worldwide income. Personas morales are only subject to Mexican tax law on their Mexican-sourced income.
  • Liability: The liability of the owners of a persona física is unlimited. The liability of the owners of a persona moral is limited to the amount of their investment in the company.
  • Management: The management of a persona física is relatively simple. The management of a persona moral is more complex and requires the appointment of a board of directors.

There are two main ways to legally acquire property in Mexico:

  • Direct purchase: This is the most common way to acquire property in Mexico. You can purchase property directly from the owner, through a real estate agent, or at an auction.
  • Fideicomiso: A fideicomiso is a trust that allows foreigners to acquire property in restricted zones, such as beachfront property or property within 50 kilometers of the border. The property is held in the name of the trustee, who is a Mexican bank, and the beneficiary is the foreign buyer.

The documents you need to sell your property in Oaxaca are: 

Public deed, owner’s ID, Public Registry, predial paid, Cadastral Certificate, Electricity, and water receipts. Freedom of Encumbrance, plans of the land or house.

The documents you need to buy a property in Oaxaca as a foreigner are: 

1.- You must process the waiver agreement provided by Article 27 of the Constitution to acquire property outside the restricted zone.

2.- Through the creation of a Mexican company.

3.- Through a trust which is also useful in restricted areas.

Mexican corporations require a minimum of two associates or shareholders. Both shareholders can be foreigners, and it is not necessary to have a Mexican partner. There are several different types of Mexican Corporations, however the most common are the S.A. de C.V. and the S. de R.L. de C.V. The S.A. de C.V. is a stock corporation and S. de R.L. de C.V. resembles a limited liability company. Once the Mexican Company is constituted, the owner can acquire property anywhere in Mexico, including the restricted zone.

A trust for the acquisition of real estate in México is a three-part contract whereby the seller (settlor) irrevocably transfers to a real estate bank (trustee) so that a third party (beneficiary) can use and enjoy such property.

Pursuant to the provisions of section I of Article 27 of the Mexican Constitution, only Mexicans by birth or naturalization and Mexican companies may own land and obtain the concession for the exploration and exploitation of mines and waters in Mexican territory.

Foreigners can own real estate in Mexico, but with some limitations:

Restricted Zone: Foreigners cannot directly own property within 100km of the border or 50km of the coast.

Trust Required: In the “restricted zone,” foreigners must purchase property through a 50-year bank trust. The foreigner benefits from the property but doesn’t hold the title.

Direct Ownership Allowed: Outside the restricted zone, foreigners can directly own land.

Mexican Companies: Companies wholly owned by foreigners can directly own non-residential property in the restricted zone.

Additional Considerations:

Land Use Restrictions: Foreigners face limitations on land size for agriculture, livestock, and forestry.
Purchase Process: Transactions require a notary or public official and witness(es). Taxes apply.

Representation: Foreigners can buy property personally or through a legal representative.
Visa: While any migrant status can buy property (except transmigrants in the restricted zone), a visitor’s visa is mandatory.

Foreign Ministry Permit: Foreigners must agree to be subject to Mexican law and not seek foreign government protection regarding the property.

Due Diligence: Verify the property is free of mortgages and has paid taxes before buying. Consult a lawyer for further guidance.

The State may grant foreign persons the same right provided that they agree before the Ministry of Foreign Affairs to consider themselves as Mexican and to renounce invoking the protection of their Government, under penalty, in case of breaching the agreement, of losing the property they have acquired for the benefit of the Mexican Nation.

Likewise, it is reported that this procedure may also be submitted through the email articulo27@sre.gob.mx.

The DGAJ will answer your questions and inquiries by phone: 55 3686-5100, exts: 6419, 6407, 6441, 6126, 6416, 6430

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The zones with the highest demand for acquiring real estate in Oaxaca City are Downtown (centro), San Felipe del Agua, Tlalixtac, San Andrés Huayapam, Ejido Guadalupe y Etla.

The restricted zone in Mexico refers to the land within 100 kilometers of any Mexican border and 50 kilometers from any coastline. In these areas, persons not born in Mexico may not purchase or have direct ownership of any land, unless they do so through a bank trust. Therefore, a trust is required for any non-Mexican residential property purchased in these zones.

Yes, as a foreigner you can incorporate a Mexican company, the incorporation of a company is an essential condition for a business to be considered formally established and to start operations, all in accordance with the legal provisions in force in the country. Get advice from the experts at www.silmexico.com or write to info@silmexico.com

It is a guaranteed deposit bank account that does not generate interest and allows you to support your money in an operation, this account protects the money and guarantees that the operation has a clear and legal process until the transfer of said money to the final account of the beneficiary.

As an example, if you are going to buy a property, you can guarantee the purchase by backing the money in the escrow account of the intermediary SILMÉXICO, who in turn will be in charge of reviewing the property documents (due diligence), signing a letter of intent between buyer and seller so that once the documentation operation is completed, the percentage will go to the beneficiary’s account.

In a real estate purchase-sale process in México, the notary, through a public instrument, exercises his function independently of the public power and individuals, being in charge of interpreting, drafting, and giving legal form to documents such as a public deed.

The answer is yes, it is necessary to pay the ISR (Income Tax) for the sale of real estate. The ISR for the sale of a house in 2023, is calculated based on the profit from the sale of the real estate, which can reach up to 35%.

It is possible to exempt the payment of ISR or deduct expenses that are subtracted from the profit from the sale. As long as the value of the sale does not exceed 700,000 Udis (Investment Units) or just over 4 million pesos. Payment can be avoided every three years.

The Income Tax, or ISR, is a direct tax on the profits obtained during the fiscal year from activities such as the sale or rental of real estate, or the provision of some type of service.

It must be paid monthly to the Tax Administration Service (SAT) or, based on what is dictated by law and regulations in relation to Fiscal Coordination between the Federative Entities and the Federation, it can also be paid to the Offices Authorized by the Federative Entities.

The Real Estate Acquisition Tax (ISAI) also known as the Domain Transfer Tax, is applied in the purchase of any real estate property in Oaxaca. With it, the Treasury guarantees that the buyer is the owner of the property. 

Likewise, other compromises the buyer shall assume are: 

Rights for registration before the National Public Registry, and Notary Public fees.

There are restrictions for anyone who builds in Mexico, these restrictions are different depending on the area where you want to build.

Private property in México is when the Nation transfers ownership of land and water to individuals, constituting private property.

The property must have public deeds and a public registry in the name of the owner who, in turn, must comply with the obligations before the state, such as property and service payments.

Communal or ejidal property in México is when the Nation transfers ownership of land and water to the ejidos and communities, giving rise to social ownership, and reserves ownership and direct ownership of certain assets, which are part of public property.

An ejidal or communal property must have an act of possession and registration before the RAN in the name of the owner. Generally, this type of property is governed by the uses and customs of the community in which it is located, making the owner responsible for fulfilling the social responsibilities of the community as well as participating in the decisions of the place.

The freedom from lien of a real estate in México is the certificate issued by the Public Registry of Property, which certifies that there is no obligation imposed on a property by credit or mortgage.

The LOI (Letter of Intent) is a formal written agreement in which two parties guarantee an operation under certain terms such as price, property, and conditions.

This letter of intent links said agreement to the formal contract of the operation, the letter is used to offer and set aside a real estate.

The EIM is a tool of the environmental policy whose object is to prevent, decrease and restore the affectations on the environment, as well as the regulation of works or activities to avoid or reduce the negative effects on the natural environment and human health. 

It consists of a technical and scientific study that indicates the effects a work or activity can generate on nature and points out the preventive measures that could minimize the adverse effects produced by the execution of developments. This study allows evaluation of environmental feasibility for the execution, manufacturing, commercial, or service investment projects. 

It details the condition of the place before the start of the project to compare the impact or changes that occurred on the environment after the construction, and likewise, proposes strategies to reduce or prevent damage already caused or possible future alterations.

The Escrow account figure in addition to being an impartial party in the operation of a sale, and not generating interest when using it, is essential for giving certainty to the parties involved, since this will act as the party that insures the deposit that is paid as an advance, which will eventually be released to the corresponding party once they have formally committed to carrying out the said operation, as well as compliance each of the requirements and conditions in the agreements established in the contracts that are entered into.

First of all, you should identify in which part of the estate you will acquire the property, since not all the processes are the same, and they are attended individually, additionally to the time that takes to achieve the final target. 

Talking about an acquisition out of the restricted area (it could be acquired through a trust or a Mexican corporation) in Mexican territory, the purchase can be carried out in a traditional way, as well as by a legal person. The process in SILMÉXICO is the following: 

  1. LOI signing (Letter of Intent)
  2. Notice of purchase-sale to the Ministry of Foreign Affairs
  3. Security deposit to Escrow account. 
  4. Signing of the purchase-sale contract
  5. Contract signing before notary public
  1. The LOI is the first document that is signed because the bases of the sales negotiation are established there, later: 
  2. This is where the Escrow account comes in, granting that security of commitment to the parties in the operation to be able to advance, in parallel with the other requirements and processes, such as the due diligence process, which must be fully complied with in order to proceed with the signing of the promise of a purchase-sale contract. 

III. Subsequently, the purchase-sale promise contract is signed, making the transfer of property between the parties, the buyer and the seller, completely formal. SILMÉXICO’s recommendation is that the ratification of the purchase contract be carried out before a public notary with whom the official closing of the purchase is eventually carried out, in order not to generate uncertainty between the parties.

  1. The final step in this process; The parties involved go before a notary public to sign the sale of the property, generate a public deed for the purchaser and register it with the public property registry, as well as the documentation that emanates from the property, such as the identity cadastral card and the predial account of the property. 

It is important to highlight that there are different processes and scenarios to acquire a property, such as buying through a trust , a process in which SILMÉXICO is an expert, and of which we will be happy to help you do.

It is possible as long as certain requirements that the community or ejido expose in order to carry out said acquisition are strictly complied with; the essential ones are those found in articles 13 and 14 of the Federal Agrarian Law of the United Mexican States. 

You could opt for acquisition mediating a Mexican legal entity as long as the guidelines established in Article 126 of the Federal Agrarian Law of the United Mexican States are complied with.

The main places with the best optimal returns and investment results in Mexico are Huatulco and Puerto Escondido, it depends on who the project is developed with, which is why a team of experts in the field is needed, such as SILMÉXICO.

The main destinations more desired on the Coast of Oaxaca are without doubt Huatulco and Puerto Escondido, although both have paradisiacal beaches, a large occupation, and are relatively close to each other, this does not mean that the environment is the same, which is why the first thing you should know when wanting to invest in these places is what type of market is the one you intend to reach, in addition to:

1.- Puerto Escondido: Located approximately 100 kilometers from the Municipality of Huatulco, it could be said that the environment is similar to that of Huatulco, in vacation villages the number of tourists, mostly, are Mexicans or foreigners who visit the municipality for the attraction of its beautiful beaches, the atmosphere of merriment that exists in the bars of the area, and its always festive atmosphere.

2.- Huatulco: In addition to its 9 beautiful bays, what characterizes it is its calm and tranquility in the streets, intended for a market that seeks tranquility, away from the hustle and bustle of crowded places. Huatulco, despite its tourist impulse, continues to preserve the essence of always. 

However, there are more places between these 2 beautiful destinations that are also very promising in growth, among them you can find popular places like Mazunte, Pochutla, and Puerto Angel, as well as other hidden but equally impressive places to choose the best option for you.

When we think of Oaxaca, we imagine a place full of life, colors and customs, as well as the local people who embrace foreigners with their treatment and warmth. It is a strategic place to invest; Since, in addition to the fact that you can find properties within the Historic Center polygon, the surroundings of the city, such as Huayapam, San Felipe and Tlalixtac de Cabrera, have lately been in significant demand by developers and those looking to acquire some residential property. What is the reason? The views that can be seen from these points make customers fall in love with them, and because they are areas away from the hustle and bustle of the city, but close enough to amenities such as schools, supermarkets, hospitals, etc., they have become the perfect setting for a life in harmony.

An accountant helps you to have a better order of the financial situation of your company and not only that, he also assists you in a precise way when it comes to expenses and income, as well as to be up to date with your tax obligations and also to have several fiscal strategies that favor the viability of the investment process of the project.

Much is unknown about the work of a builder in real estate development, it is not simply building the structural and material part of what you want to do, it also involves looking for suppliers, the personnel that will participate in the construction; this in order to find the best possible scenario to execute the desired project in a perfect way.

An architect must support the client not only with the architectural program, but also with the program based on their needs and thus find what suits them best. In addition to developing a plan in terms of construction and execution of work that adapts not only to the physical needs of the client but also to the environment.