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New Law proposed for Foriegn owners of Mexican property

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Huatulco, Mexico
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New Law proposed for Foriegn owners of Mexican property

Mexican Legistature Plans a Vote this Week on the Fideicomiso Issue

by yucalandia

APRIL 21, 2013Por Esto (not our favorite news source) offers some interesting updated on the Mexican Legislature's actions on Fideicomisos: www.poresto.net/ver_nota.php… version off an El Universal report.

Google Translate Version:

"Beaches to the highest bidder

Foreigners can buy land on the beach, of an amendment to Article 27 of the Constitution to be voted on Tuesday in San Lazaro / Since its enactment in 1917, the Constitution prohibits foreigners to purchase property in a stretch of 50 kilometers on the coast

MEXICO CITY, April 20 (UNIVERSAL). - In a direct way, foreigners may own land on beaches housing exclusively for non-commercial purposes from a reform of Article 27 of the Constitution to be voted in San Lazaro this Tuesdays.

Since its enactment in 1917, the Constitution prohibits foreigners to purchase property in a stretch of 50 kilometers on the coast, and yet they have the soil domain through trusts.

The chairman of the Commission on Constitutional Chamber of Deputies, Julio Cesar Moreno, said that this change will end a practice of simulation.

Once you approve the reform will be fulfilled a brand of change to Article 27 of the Constitution, within 20 days from the filing of the initiative.

The change initiative is the Institutional Revolutionary Party (PRI) and the National Action Party (PAN), by Gloria Elizabeth Sanchez Nunez, Manlio Fabio Beltrones and Raul Paz Alonso, who argue that in practice foreigners are owners of land on the beach but not his name, but prestanombres or trusts.

The opinion notes that "foreigners do not affect in any way the sovereignty, territory and the legal rights that protect the state."

The opinion recognizes, with the proponents, the aim of the initiative is to "eliminate the middleman: the houses realtors or builders listed as owners of the land, but sold the building to foreigners".

This will "neutralize foreign restriction of not being able to own land, since legally abroad only owns the building" when in practice, it is also mourning the land."

Winnipeg, Manitoba
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11. Re: New Law proposed for Foriegn owners of Mexican property

So I could expect this "foreign land owner's bill" to become law about the same time the highway to Oaxaca City is finished.....?

Cozumel, Mexico
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12. Re: New Law proposed for Foriegn owners of Mexican property

Stevemex is correct...Your FC to a regular title would be considered a Sale of the property. Taxes woulds be enormous even if equity is not envolved. Mexico knows that 1 baby boomer retires every 13 seconds. they just want their take for your Carribbean living. A Mexican Corp. is probably the bext way, to execute a sale. then you and the Corp own the property...

Edited: 8:58 pm, May 04, 2013
Queretaro City...
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13. Re: New Law proposed for Foriegn owners of Mexican property

Using a Mexican corp still means you pay tax when selling - this time 16% IVA. Then there is the admin of having to file a tax return every month and associated accontancy fees. I preferred to buy inland and painted palm trees on the wall so I could pretend I was on the beach!

NYC / Fire Island...
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14. Re: New Law proposed for Foriegn owners of Mexican property

"Expert" or not, we recommend that folks consult a qualified attorney and/or an accountant in Mexican law.

CH

Dexter, Michigan
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15. Re: New Law proposed for Foriegn owners of Mexican property

Another problem is that over the years there are areas where title is not always without doubt. This is especially true with old ejido lands. Baja is one of the areas of problem. Many folks bought trusts that were later invalidated. Even with this going through you should never think of buying land there without hiring a lawyer who specializes in land purchases. And get references that can be verified. Just like at home there are lots of dishonest and incompetent lawyers.

16. Re: New Law proposed for Foriegn owners of Mexican property

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