# Real estate laws have changed



## badanthont (Sep 21, 2014)

You now need a temporary resident or permanent resident card to buy property in Mexico. I have no idea why they made it harder to own property here, but they did.
This from an email from a real estate agent.


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## Longford (May 25, 2012)

It will be helpful if you will cite a reliable government source for your information. Thanks.


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## TundraGreen (Jul 15, 2010)

Longford said:


> It will be helpful if you will cite a reliable government source for your information. Thanks.


 I agree, a government source would be interesting, and more reliable than a real estate agent. The Secretaria for Relaciones Exteriores (SRE) is the agency that has the authority to give permission for a foreigner to buy property.


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## cscscs007 (Jan 8, 2011)

Yes this is correct. I purchased a property in August of this year. The Notario was very clear about this. No more FMM/FMT purchases are allowed and he was happier when I offered to have him put the property in just my wife's name (she is a Mexican citizen by birth) by producing her birth certificate. No problem when we went this route.


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## AlanMexicali (Jun 1, 2011)

TundraGreen said:


> I agree, a government source would be interesting, and more reliable than a real estate agent. The Secretaria for Relaciones Exteriores (SRE) is the agency that has the authority to give permission for a foreigner to buy property.


Nothing in the SRE rules and laws have changed since 2009. FIDEICOMISOS are the same. Unrestricted zone property purchases are the same. Business setups are the same for foriegn citizens. What has changed is the new Jan. 1st. rules from SAT/Hacienda only.

To sell or buy a house or condo outside the restricted zone without a FIDEICOMISO you have to now have a CURP. You must also have registered at SAT and get a RFC number. To get a RFC number you need a CURP.

FMM tourist card holders cannot get a CURP. NO RFC number either.

CURPs are now only given to foreigners that have a valid INM visa by the INM as of last year sometime.

If a foreign owner already has a fideicomiso he also has a RFC number registered at SAT somewhere. To sell the bank holding the trust handles the title transfer and probably the taxes through a Notaria office.

For a foreigner to buy or sell now he needs a RFC number. This implies he needs a CURP to get one.

SRE rules remain the same in any case.

http://www.sre.gob.mx/index.php/cancilleria/marco-normativo


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## AllBbear (Apr 17, 2013)

******* buying realestate*

Guys, I suffered two days of lost sleep over reading postings about purchasing real estate in Mexico.

I close on a property in Guanajuato state in less than two weeks. I am purchasing on a tourist visa from July.

I have been assured by both my Mexican Lawyer as well as a reliable very old real estate firm that the posted information re CURP and RFC is simply not true!!!

While it is great to hear peoples experiences; I urge you to take all with a grain of salt and refer to the experts and not hearsay.

Viva la Mexico


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## Longford (May 25, 2012)

AllBbear said:


> While it is great to hear peoples experiences; I urge you to take all with a grain of salt and refer to the experts and not hearsay.


Yes, first-hand experiences with current transactions such as the purchase of real estate are important, and equally important is the legal advice we receive. However, you might recall that #4's comments pertain to an August 2014 purchase and that person was personally involved. Notario's aren't infallable. Some are better than others. Finding one who knows what he/she is doing can be a challenge. On the other hand, I don't have much confidence in the real estate people I've met and read comments from online because they'd do/say just about anything to facilitate a sale. Thanks for your comments; they'll add additional 'food' for thought.


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## joaquinx (Jul 3, 2010)

New Laws - Buying Property in Mexico - Own Mexico

It seems that there are a number of sites that state that the changes are true. As of September 1, 2014, you need both the CURP and the RFC.


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## AlanMexicali (Jun 1, 2011)

AllBbear said:


> Guys, I suffered two days of lost sleep over reading postings about purchasing real estate in Mexico.
> 
> I close on a property in Guanajuato state in less than two weeks. I am purchasing on a tourist visa from July.
> 
> ...


I did some research on SAT taxes required to be paid by the buyer. 

I also sold a house last Nov. in Mexico and bought a condo in Feb. here.

It appears only minor costs are involved by the sellers, as in my case. 

The buyer pays the most in charges for the title and closing costs paid to a notario if cash is used and no tax only the seller pays the new taxes [Jan. 1st.] and gets an almost $3,000,000 peso exemption every 5 years before paying capital gains if it is a primary residence. If over that amount or if he used the exemption within the last 5 years he then pays some capital gains. SAT RFC is needed at any rate to file forms.

Also the seller as of Jan. 1st. has to pay SAT 16% IVA on the real estate companies´ commisión. 

If an owner rents he should be registered at SAT and pay the monthly 16% IVA to SAT. He can make deductions on maintenance etc. and predial needs to be paid yearly ... no SAT RFC needed for paying predials, I think.

So if a SAT RFC number is absent from the seller it is a big problem IMO. 

If a RFC number is absent from the buyer possibly no big deal when cash is used. The buyer is not being scrutinized like the seller is by SAT.


In conclusión you might at this time buy a house without a RFC number but cannot sell one without paying some taxes to SAT anymore or filing for a capital gains exemption with SAT. 

Seems like a catch 22 with some room to wiggle I presume and I also presume there might be a grandfather clause sometime in the future. 

I feel they really want tax money and have people properly registered to collect it. 

I was as shocked as anyone when the news stated only SEGOB INM can issue CURPs to foreigners now and only to the Resident Visa holders.


By the way, your experience does no match mine exactly.


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## Playaboy (Apr 11, 2014)

The way I read all this is any buyer can buy property even without a CURP. When they sell the property, without CURP, capitol gains taxes will be based on the total sales price not the difference between purchase and sales price.

Bad for foreigners, nice for the government


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## AlanMexicali (Jun 1, 2011)

Playaboy said:


> The way I read all this is any buyer can buy property even without a CURP. When they sell the property, without CURP, capitol gains taxes will be based on the total sales price not the difference between purchase and sales price.
> 
> Bad for foreigners, nice for the government


If you read the Mexican Embassy in Ottawa Canada residency visas requirenmet for a preapproved residency visa in their website and at their Consulates' websites in Canada they state a $105,000 CND paid off property in Mexico gets you a Residente Temporal visa. 

I would presume this is everywhere but many Mexican Consulates´ websites are not clear on this área of the point system to get a visa.


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## sparks (Jun 17, 2007)

Playaboy said:


> The way I read all this is any buyer can buy property even without a CURP. When they sell the property, without CURP, capitol gains taxes will be based on the total sales price not the difference between purchase and sales price.


I think it's whatever your local Notary say you need


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## Playaboy (Apr 11, 2014)

sparks said:


> I think it's whatever your local Notary say you need


Very true since they are ultimately responsible. 

This new requirement is going to make folks look at destinations where it is easier to buy. AZ is looking nicer and is sure easy to purchase.


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## AlanMexicali (Jun 1, 2011)

sparks said:


> I think it's whatever your local Notary say you need


That was what it was when I sold my house in Nov.. Notarios are libel for any mistakes they make in Mexico. If the local Registro Civil stamps it recorded I guess you´re the new owner and the title is legal.

If his Notario says he has it covered I also assume he will be the new owner in Querétaro also.


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## Bobbyb (Mar 9, 2014)

Apparently there are some workarounds. You can appoint someone with the right credentials to act as an agent. if you ever had an FM3 then your curp can be obtained. I think the problem is your buyer. Will a newby to Mexico want to jump through all the hoops?


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## AllBbear (Apr 17, 2013)

Just a follow-up to an earlier post. I am now a homeowner in Mexico. The main thing here is I bought on a tourist visa. No other docs required..... just bring $$. There were earlier posts that said this could not happen. Bob


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## Longford (May 25, 2012)

AllBbear said:


> Just a follow-up to an earlier post. I am now a homeowner in Mexico. The main thing here is I bought on a tourist visa. No other docs required..... just bring $$. There were earlier posts that said this could not happen. Bob


Congratulations on your purchase. In what part of the country did you buy?

It seems to me the comments contained in #5, above, provide the detail regarding property owned in the non-restricted zones by foreigners. It appears that while you may be able to purchase you cannot sell (or rent) ... if you're only in Mexico with permission to be in the country as a tourist.

Best of luck with your new purchase.


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## AllBbear (Apr 17, 2013)

I purchased in San Miguel de Allende/ Santa Julia. I named my new house CASA DEL JARDIN ESCONDIDO.

Its kinda funny. Eight trips to Mexico, always avoiding San Miguel (and Chapala) because of what I thought as too ****** centric. I visited in July and found I loved the city and the house I purchased on my 63rd. Birthday October, 8th.

Now........to begin work on my Permanent Resident Visa for a next spring final migration.


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## Longford (May 25, 2012)

Thanks for the response. I think there are many misconceptions about SMA. Especially the part about it being _gring centric_. I was in SMA from the 1st to the 8th this month, for the _La Alborada_ festivities. Best of luck with the new home, and new life!


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## lagoloo (Apr 12, 2011)

It isn't ****** centric when you purchase a home, as we did, in a real Mexican barrio where everyone converses in Spanish and follows the local Mexican traditions. If it weren't for health factors, we'd have stayed there, so congratulations on your new home. Have many happy times.!


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## Longford (May 25, 2012)

lagoloo said:


> It isn't ****** centric when you purchase a home, as we did, in a real Mexican barrio where everyone converses in Spanish and follows the local Mexican traditions.


Is there a barrio/colonia of SMA which isn't a "real Mexican barrio"? :confused2: From what I understand, the SMA town proper has a population of about 63,000 and the municipio a population of about 140,000. Maybe, at the height of the _season_ ... 5-6% of the town population would be expat and much, much less in the municipio overall. Maybe somone has access to more exact statistics. But I think it's a real stretch of the imagination for someone to describe SMA as "****** centric." :noidea:


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## lagoloo (Apr 12, 2011)

Maybe right downtown in Centro or up in "Balcones", but all you have to do is look around to notice that most residents are not "gringos".

There are, however, many businesses that do cater to an expat crowd.


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