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rscastro

Oct 12, 2011, 11:31 AM

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property taxes in Mexico

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I have been trying to research information regarding property taxes in Mexico. I've read enough to get confused. We are supposed to close next month on a property purchase in Akumal. It is a new development (Bahia Principe) and we hope to start building our home next year. My husband has dual citizenship (Mexico and U.S.) so we understand that simplifies the process and lowers the costs somewhat. We just don't know what to expect when we come down to finalize the purchase and receive our deed to the lot. Our sales advisor told us it could be anywhere from 2.5% to 5%. Any advice?

13 months to retirement and Akumal. The countdown will officially begin once we sign off on the property in December. Hopefully by next Christmas, we will be meeting some of our new friends in Mexico.

Thanks.
susan

rockydog85251

Oct 12, 2011, 1:27 PM

Post #2 of 8 (1493 views)

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Re: [rscastro] property taxes in Mexico

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When I was selling real estate in Mazatlan, ALL of the notarios that we used were more than willing to discuss this with the client before closing and even provide an estimated statement of closing costs to the buyer, since they are the ones that pay all of the costs except the capital gains taxes of the seller.
I would strongly suggest you get a professional estimate from your notario, rather than a public forum...no surprises that way!
Good luck to you and felicidades!
Willie

rscastro

Oct 12, 2011, 2:10 PM

Post #3 of 8 (1478 views)

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Re: [rockydog85251] property taxes in Mexico

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Thank you for your reply. I am going to call the developer tonight and find out who is handling the closing. You are right....we really don't want to fly down there expecting one thing, only to be told something different and get caught off guard. I think we have been more trusting since this is a large development as opposed to buying from an individual. We can't afford to let our dream of retirement cloud our common sense and the dream become a nightmare.

rockydog85251

Oct 12, 2011, 2:55 PM

Post #4 of 8 (1461 views)

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Re: [rscastro] property taxes in Mexico

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You might want to take all your documents to a private notario of your choosing for an objective analysis, since you will probably be buying in your Mexican husband's identity, therefore you won't be having a bank trust/fideicomiso on the property. That will save you quite a bit of $$$ but take some of those savings and check it out carefully. Do NOT use the same notario as the seller, in this case the developer. Normally the buyer has the right to choose the notario but sometimes the developer does not allow this, since they have "bundled" all their transactions regarding adquisiton, division of and sales of the property with one notario.
Willie

donemry

Oct 13, 2011, 9:07 AM

Post #5 of 8 (1364 views)

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Re: [rscastro] property taxes in Mexico

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In Reply To

Rather than give specific numbers, I will use a generalization about property taxes. In the PV area, they are so low as to be a trivial item for our costs of maintaining a house there.

rscastro

Oct 13, 2011, 9:18 AM

Post #6 of 8 (1355 views)

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Re: [donemry] property taxes in Mexico

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Thank you. I just realized I said property taxes in my first posting and I really meant closing costs. I know that property taxes will be so much less than what we are paying now. We are just not familiar with everything that is included in the closing costs there and did not know what to expect nor what to plan for. I have been in touch with the notario that is handling our closing and he is supposed to get us all the details. I think when I wrote this original post that I was just in a mild stage of stress at the thought of closing. Heck, I did the same thing when we bought our house here in the U.S.

Thanks!
susan

Rolly

Oct 13, 2011, 9:21 AM

Post #7 of 8 (1353 views)

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Re: [donemry] property taxes in Mexico

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Susan wrote "property taxes" but in her post it was obvious she was talking about closing costs on the purchase-- a very different thing. As donemy says, property taxes are so low as to be a non-issue. Closing costs, however, are a significant expense as noted in a previous post.

Rolly Pirate

rscastro

Oct 19, 2011, 8:52 AM

Post #8 of 8 (1144 views)

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Re: [Rolly] property taxes in Mexico

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Oh how true your are, Rolly. First, I did sort of mix my words up...I was saying property taxes and I really meant closing costs. Second, we just got a list of expenses involved in closing on our lot and WOW!! We will pay almost as much to close on the property in Akumal as we did on our house here NOB---and the lot is about a 1/3 of the value of our house. We will be able to save $2,600 by not setting up a bank trust since my husband has dual citizenship. But then I will have to go through the closing costs all over again if I outlive him. I am definitely going for dual citizenship so I won't have to set up the bank trust. This is such a learning adventure. Hopefully, we will close in December. Not sure what happens when we start building our house next summer. Wish us luck!!!

I have learned so much through this forum. Thank you to all of you veterans!

Susan