Forums > General > Living, Working, Retiring

leegleze

Mar 17, 2011, 12:14 PM

Post #1 of 4 (3197 views)

Shortcut

Lapsed FM3 ... wants FM2. Can it be done?

Can't Post | Private Reply

Hi y'all!

A good friend has lived here for six months each year since about 1998, and bought property here quite a few years ago. For some reason, he let his FM3 lapse since April 2010 (he still has the little green booklet). Now he hears that he can avoid capital gains tax if he sells his house, but only if he holds an FM2 (Imigrante). He would, therefore, like to get an FM2. Would it be possible for him to simply forget his FM3 and apply for an FM2 when he comes back to the Mexican coast in the Fall, or does he have to have an up-to-date FM3 to do so? If so, would the penalty on the lapsed FM3 be prohibitive? Could he be deported if he asked questions at Migration offices?

FYI: He is currently living in his house in Mexico, but plans to return to the US in early April, where he will remain until October 2011.

Thanks for your help ... as always.
~ Roxana in Bucerias ~

bournemouth

Mar 17, 2011, 12:23 PM

Post #2 of 4 (3187 views)

Shortcut

Re: [leegleze] Lapsed FM3 ... wants FM2. Can it be done?

Can't Post | Private Reply

This is the kind of situation where I, personally, would find a good facilitator in my area and put the problem in their hands. Others opinions may vary.

morgaine7

Mar 17, 2011, 3:45 PM

Post #3 of 4 (3154 views)

Shortcut

Re: [leegleze] Lapsed FM3 ... wants FM2. Can it be done?

Can't Post | Private Reply

An FM2 alone may not enable him to avoid capital gains tax. Some sources say that a foreigner needs to have lived in the property as her/his primary home for five years. Here's one. He'll want to check with a notario, of course:
http://internationalpropertyjournal.com/...pital-gains-tax.html

Kate

leegleze

Mar 17, 2011, 4:46 PM

Post #4 of 4 (3141 views)

Shortcut

Re: [morgaine7] Lapsed FM3 ... wants FM2. Can it be done?

Can't Post | Private Reply

Sorry, I forgot to mention that his home here in Mexico is the only home he owns, so it IS his primary residence. He house-sits and stays with family while in the US.
~ Roxana in Bucerias ~