A: Yes, there are certain procedures a foreigner must undertake. Owning property in Mexico is easier and safer than ever, due to established new legislation and well defined rules regarding non-Mexicans owning land in Mexico. These rules are in place to protect ownership rights and to promote the sale of real estate to foreign investors. The mechanism is a safe, established and perpetually renewable Mexican Property Trust called a “Fideicomiso”. Foreign buyers also have the opportunity to form an LLC for Ownership (an offshore company) that can own the property, if best suited to their needs.
A: The Developer is offering seller financing for qualified individuals.
A: The terms vary based on borrower qualifications. The terms and rates are very attractive and generally lower than bank rates that are provided to foreigners seeking financing from a National bank. Please call and speak to a Sales Executive for more information.
A: At the current applicable tax rates, we expect annual property taxes of approximately one tenth of one percent of the purchase price. This tax is known as Predial Tax and is fairly nominal. It is approximately 0.24%, and if paid in advance before the prior to the end of year there is as much as 40% discount on this tax.
A: Transfer taxes are currently 2% of the purchase price. Additional closing costs will range from 2% to 4% depending on the purchase price. In Mexico, these costs are paid by the Buyer. To the extent possible, Playa de La Paz has negotiated preferred rates on some costs and fees for its Buyers.
A: In general, upon the sale of property in Mexico, a foreign owner of real estate in Mexico must pay Mexican income tax. The current tax rate is 25% of the gross sales price or approximately 30% of the net profit, whichever is determined to be less, depending upon your particular set of circumstances. These percentages are estimates and are subject to any amendments to the Mexican tax legislation. The United States and Mexico are parties to a bilateral tax treaty which may provide a tax credit. We also understand that if you are a Resident for a period of years and pay the necessary utilities and produce receipts for these utilities, there are big discounts to be had on these costs. We recommend you seek advice from your tax advisor.
A: We recommend consulting a US tax attorney for more information on US 1031 tax exchange. Or log on to www.irs.gov for more information on 1031 exchanges.
A: Playa de La Paz benefits from having Title Insurance on the entire property through First American Title Insurance, we know from experience that the Title Insurance Companies are not issuing cover to individual owners.
A: Playa de La Paz staff is fully trained to follow the security procedure in case of hurricanes; this includes having flashlights and batteries, protection of windows, retaining walls and other actions. Additionally, Playa de La Paz, does not have the typical Mexican Construction. It is made with an American Steel Structure going down to the bedrock with buildings built on a concrete raft.
A: No, included in your HOA dues is property insurance that covers all building structures and common areas. However, insurance coverage for interior furniture and fixtures is the responsibility of the homeowner.
A: Playa de La Paz has a retaining seawall, emergency generator, desalination plant, and tempered glass in doors and windows.