To own restricted zone property via Trust or Corp?

To own restricted zone property via Trust or Corp?

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Just wondering what are some of the things to consider when setting up restricted zone property ownership by way of one of these two methods. Bank Trust or Mexican Corporation.

- Initial cost of Corporation will be less ( about half ) and the flexibility to make changes to the land use/title seems much cheaper and easier with a corp.
However
- I have heard that the tax implications are different when you eventually sell your property. Maybe you pay a lot more if it's owned as a corp?

Looking for whatever insight you may have.
Thanks!

Rolly

Aug 22, 2011, 9:21 AM

Post #2 of 26 (2058 views)

Re: [powskier] To own restricted zone property via Trust or Corp?

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Is this business property or your personal residence?
It is not legal to use a corporation to cover your personal residence in the restricted zone.
People sometimes do. but it's not legal. They stand to loose the property if they get caught.

Rolly Pirate

Bennie García

Aug 22, 2011, 9:38 AM

Post #3 of 26 (2050 views)

Re: [powskier] To own restricted zone property via Trust or Corp?

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Besides not being allowed, if you set up a corporation, (which in my opinion will cost more) you will also have tax filing obligations and all of the other legal responsibilities that come with owning a corporation.

Not a good idea IMO.

rockydog85251

Aug 22, 2011, 1:25 PM

Post #4 of 26 (2016 views)

Re: [Bennie García] To own restricted zone property via Trust or Corp?

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Having sold property in the restricted zone....I would not suggest a Mexican Corp. unless it is income property....the tax consequences otherwise are incredible, especially when you go to sell it. With an income property, you will have to do the tax dance anyway. Go to an respected accountant and notario for advice before you make a decision.
Willie

sparks

Aug 22, 2011, 4:57 PM

Post #5 of 26 (1983 views)

Re: [Rolly] To own restricted zone property via Trust or Corp?

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Just had this conversation today but it was about owning property on the coast after so many year on an FM2 and moving to inmigrado. I was unclear with the difference between inmigrado and citizen ... and restricted zone ownership

Also does inmigrado receive a Mexican passport. If not how to check in and out of Mexico

Sparks Mexico - Sparks Costalegre

(This post was edited by sparks on Aug 22, 2011, 4:59 PM)

esperanza

Aug 22, 2011, 8:46 PM

Post #6 of 26 (1949 views)

Re: [sparks] To own restricted zone property via Trust or Corp?

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An inmigrado has not historically been permitted to hold a Mexican passport. Nor has an inmigrado been permitted to buy restricted property without a fideicomiso. Those things are unlikely to change under the new rules, as they are rights reserved for Mexican citizens and inmigrado status does not include those rights.

http://www.mexicocooks.typepad.com

dongringo_catemaco

Aug 22, 2011, 10:31 PM

Post #7 of 26 (1929 views)

Re: [sparks] To own restricted zone property via Trust or Corp?

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"If not how to check in and out of Mexico".
You get a plastic ID card, similar to the old FM2.
Visit Catemaco News

Aug 23, 2011, 10:13 AM

Post #8 of 26 (1873 views)

Re: [dongringo_catemaco] To own restricted zone property via Trust or Corp?

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sparks, it's more "how to check out and in" than vice versa. It's basically just the same as before except that it is now being enforced at ground entry points, rather than just at airports. When leaving México, you stop at the immigration office and fill out an FMM. They keep 1 copy (showing you leaving the country), and you keep the other copy which you use, along with your FM2 inmigrado card, to re-enter the country.

sparks

Aug 23, 2011, 2:23 PM

Post #9 of 26 (1832 views)

Re: [mazbook1] To own restricted zone property via Trust or Corp?

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So the old FM2 inmigrado card and the inmigrado card are technically different but you use the same procedure. Only difference is you don't renew the 'pure' inmigrado

Sparks Mexico - Sparks Costalegre

Aug 23, 2011, 3:47 PM

Post #10 of 26 (1814 views)

Re: [sparks] To own restricted zone property via Trust or Corp?

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That seems to be the way they are enforcing it now. Whether this will be the routine once the NEW, new immigration law goes into effect, who knows?

careyeroslib

Aug 24, 2011, 8:05 AM

Post #11 of 26 (1731 views)

Re: [mazbook1] To own restricted zone property via Trust or Corp?

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With respect to the current classifications, I just checked my FM2 card and it says ¨Inmigrante¨, not Inmigrado.

Vichil

Aug 24, 2011, 10:06 AM

Post #12 of 26 (1706 views)

Re: [careyeroslib] To own restricted zone property via Trust or Corp?

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The Inmigrado card is the equivalent of the US "green card" it is a permanent resident Card. If your card says Inmigrante your are a temporary visitor on your way to permanent resident.

Aug 24, 2011, 12:21 PM

Post #13 of 26 (1683 views)

Re: [sparks] To own restricted zone property via Trust or Corp?

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In Reply To

So the old FM2 inmigrado card and the inmigrado card are technically different but you use the same procedure. Only difference is you don't renew the 'pure' inmigrado

and

In Reply To

With respect to the current classifications, I just checked my FM2 card and it says ¨Inmigrante¨, not Inmigrado.

I think the confusion is coming from Sparks incorrectly identifying his FM2 card as an "Inmigrado", while FM2's are actually 1 year "Inmigrante" permits. The typo bug has bitten again (in reference to my typos in a Tech thread).
steve
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Read-on MacDuff
E-visit at http://yucalandia.com

Aug 24, 2011, 1:41 PM

Post #14 of 26 (1667 views)

Re: [YucaLandia] To own restricted zone property via Trust or Corp?

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I'm not so certain it was a typo. For years and years there were FM2 Inmigrante visas and after having one of those you changed to an FM2 Inmigrado visa. Now, with the new cards, the only FM2 is Inmigrante and the classification of Inmigrado is a card all its own. I know many, many folks that have been here for years who are still referring to their new Inmigrado card as their FM2.

morgaine7

Aug 24, 2011, 2:47 PM

Post #15 of 26 (1648 views)

Re: [YucaLandia] To own restricted zone property via Trust or Corp?

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"FM2" (for Formato Migratorio 2) was the name of the gray booklet under the old system. It had pages for four extensions as Inmigrante, then if the person applied for and was granted Inmigrado status, that authorization was placed on a separate page of the same booklet. IOW, the FM2 booklet was used for both Inmigrante and Inmigrado status. Clear as mud? Anyhow, what Sparks said made perfect sense to me as a former holder of the gray FM2 booklet.

Kate

Aug 24, 2011, 4:45 PM

Post #16 of 26 (1631 views)

Re: [morgaine7] To own restricted zone property via Trust or Corp?

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There are at least 33 references to "FM2 Inmigrante" on INM's current websites, going back to at least 2009, on 35 different official INM webpages, with no mention of "FM2 Inmigrado".

After at least 3 years of INM exclusively using the "FM2 Inmigrante" terminology, it would seem that it's time to retire the old FM2 Inmigrado references, to keep from confusing people who are newer to the process?
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Read-on MacDuff
E-visit at http://yucalandia.com

(This post was edited by YucaLandia on Aug 24, 2011, 4:50 PM)

Aug 24, 2011, 4:54 PM

Post #17 of 26 (1619 views)

Re: [YucaLandia] To own restricted zone property via Trust or Corp?

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YucaLandia, Now you're trying to be LOGICAL, and just when has bureaucracy EVER been logical? Besides that, we all know how difficult it is to teach old dogs new tricks! LOL

Rolly

Aug 24, 2011, 6:36 PM

Post #18 of 26 (1599 views)

Re: [YucaLandia] To own restricted zone property via Trust or Corp?

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It's about to get even more confusing when all the visa names change in a few months.
I've already begun to think about posts that will need to be deleted and new ones written to deal with the rule changes. UGH
That's just on MexConnect. My eyes cross when I think about the major changes I will have to do to my website. Anybody want to buy a website cheap? Smile

Rolly

Aug 24, 2011, 6:52 PM

Post #19 of 26 (1595 views)

Re: [Rolly] To own restricted zone property via Trust or Corp?

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I think I have had some similar headaches thinking about how to integrate the useful "old" INM and Aduana and auto bits on Yucalandia into the upcoming new material.

I'm personally holding my breath to see what they do regarding foreign plated car permits under the new system. How will they integrate FM3 lucrativo, FM2 lucrative and familiar categories (with no foreign cars allowed) and FM3 and
FM2 Rentista (car allowed), with the new Residente Temporal "catch-all" - further complicated with the potential for FM2 Rentista being assigned to Residente Permanente, unless they grandfather-in existing FM2s & FM3s with cars under some subcategories - which means we will still have some residuals of the old system, sticking in the new system?

This stuff also complicates books in publication, guides recently published (that will be outdated), and leave people stuck with books whose advice is just flat wrong. Fun, fun. fun.
steve
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Read-on MacDuff
E-visit at http://yucalandia.com

Rolly

Aug 24, 2011, 6:58 PM

Post #20 of 26 (1588 views)

Re: [YucaLandia] To own restricted zone property via Trust or Corp?

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Yep. Maybe I'll just hit the delete button, hang up my keyboard and go fishing.

Rolly Pirate

RickS

Aug 24, 2011, 7:46 PM

Post #21 of 26 (1577 views)

Re: [Rolly] To own restricted zone property via Trust or Corp?

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NO, NO, NO, and NO!

careyeroslib

Aug 25, 2011, 5:47 AM

Post #22 of 26 (1542 views)

Re: [RickS] To own restricted zone property via Trust or Corp?

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Rolly: I second, No, No, No (to hanging up the keyboard!)

Yucalandia: We, too, our holding our breaths with respect to the foreign car issue and are crossing our fingers, hoping for some kind of provision for current FM2 rentistas with foreign-plated cars. Up until this new law, we thought we had two to three more years to deal with this. Now, all of a sudden, this next refrendo in a few months..... Eeek. Let´s hope.

Aug 25, 2011, 9:05 AM

Post #23 of 26 (1516 views)

Re: [YucaLandia] To own restricted zone property via Trust or Corp?

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Minor error, YucaLandia: The FM3 lucrativas (there are even sub-categories of this!) do allow you to have a foreign plated vehicle in México and that has always been true.

Aug 25, 2011, 9:18 AM

Post #24 of 26 (1512 views)

Re: [mazbook1] To own restricted zone property via Trust or Corp?

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Great....

Another complication and another group of people to grandfather-in(?), or the necessity of creating yet another new subcategory in the new Residente Temporal ? **
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**Rolly, maybe you could create a cut-and-paste disclaimer to slap on old posts:
"This information is either irrelevant or out of date."

and you can start with this post. "This information is either irrelevant or out of date."
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Read-on MacDuff
E-visit at http://yucalandia.com

(This post was edited by YucaLandia on Aug 25, 2011, 9:23 AM)

eyePad

Aug 25, 2011, 11:25 AM

Post #25 of 26 (1488 views)