Buying a house in the Yucatan is a joyous time! There is no better place to live in paradise than this region of Mexico. The Yucatan and it’s capital, Merida, are unique places in Mexico in that they are a lesser known area that is growing but is still a hidden gem that is safe and beautiful and full of rich history and culture. That makes the Yucatan Peninsula one of the most sought-after areas to buy property. It can also be one of the most daunting. You need to find the best realtors in Merida who can help you through the entire home buying process and beyond.
Finding the right realtor is key. You need to find someone you trust who can guide you through the process because Mexican real estate is like no other! Find someone who you share a common language with. Bilingual and multilingual agents often understand you better and can help you communicate with other parties involved in the buying process. It is also important to find someone who knows the region and can discuss with you certain locations to look at and others to steer away from.
While touring properties with your agent, you will need to have them help you understand about Fideicomisos (bank trusts) and Foreign-Owned Mexican Corporations (FOMC) to determine which is the best vehicle for you to utilize to hold title. Both have advantages and disadvantages. It’s about what works for you.
The fideicomiso, or bank trust, is a trust agreement that you establish with a bank to hold title of the property with you. The bank has a fiduciary responsibility to represent your interest in the property. Advantages of the fideicomiso are that it is a 50-year trust agreement that is renewable every 50 years by you or your heirs. You can rent, sell, remodel or dismantle the improvements on the property. The main disadvantage of the fideicomiso is that it is restricted to hold a property of no more than 2,000 square meters (roughly 21,500 square feet). The bank trust is also only limited to one specific property.
The Foreign Owned Mexican Corporation (FOMC) is a vehicle that allows foreigners to open a business and work in Mexico. The corporation is a Mexican entity and has the right to hold title to real estate. An attorney can help to set up your corporation.
Advantages of the FOMC are that it allows for the purchase of properties larger than 2,000 square meters and there is no limit to the number of properties it may own. It also allows for one or more of its stockholders to legally live and work in Mexico year round. Its disadvantages are that it does require more attention than a fideicomiso. It also does not have the ability to avoid capital gains taxes when it sells property and you must report financial activity every month.
When you start to understand the nuances of buying property in Mexico, you can start to feel at ease with the buying process. Your realtor can explain everything to you in detail. Finding the best realtors in Merida can be a process but if you know where to look you won’t be disappointed. Merida Property Management is made of a team of multilingual agents who understand your apprehension and concerns about buying in Mexico. We can also help you to maintain your property once we help you find the place you want to call home.
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