Investing in property in Mexico is sound business, and people do so for a variety of reasons. Many come on vacation, fall in love with the people and their culture, and want to spend more time here in the future. Others witness the success of the Mexican tourism industry and see the potential for making a successful investment in vacation accommodation that can be rented on increasingly popular digital platforms. When doing this it is essential to know which is the best way to make your purchase and what your tax obligations are. Mextax offers you a team of experienced accountants who can show you how to make the most of your investment and ensure it turns into a long-term source of income.
An excellent option for foreigners buying real estate is to open a Mexican corporation. By creating a Mexican corporation, foreigners can avoid the fideicomiso process, since the property would be purchased by the Mexican corporation. A Mexican corporation should be considered if you plan to rent your Mexican property for income, plan to purchase more than one rental property or if you have no plans to obtain Mexican residency.
When renting a property owned by a Mexican corporation, the corporation will be issued a Mexican tax ID (RFC) and make monthly income declarations. There is a lot more involved in owning a Mexican corporation so it is important to discuss this option in detail with one of our certified and knowledgeable Mextax accountants.
WHAT ARE THE BENEFITS OF CREATING A CORPORATION?
A Mexican corporation has the same legal rights as a Mexican citizen to acquire property anywhere in Mexico, including real estate in the restricted zone, without acquiring it through a fideicomiso.
The corporation has the potential to be a very lucrative venture by renting out prime vacation property.
You can also start a business and receive dividends and tax advantages from your Mexican Corporation.
Investing in a Mexican Corporation also provides the required financial data to aid in residence visa applications.
Our experienced Mextax agents can assist you from the moment you start planning to make your purchase and continue to help you with our expert advice on accounting matters and how to make sure you pay your taxes appropriately. Online vacation rental is booming in Mexico and at Mextax our specialist accountants will show you how to make the most of this lucrative market.