We know you have allot of questions when it comes to investing in Mexican Real Estate. For this reason we have put together a few common questions we have received over the past years. If your questions are not answered here, then please feel free to contact us.

• If I list my property for sale through your company, what would be the commission?

Commissions vary depending on whether the property is a house / condo or a lot, and depending on the sales value. Please check with a sales associate to find out what commission applies to your property.

• Do I also have to pay the notary’s fees in order to transfer this property to the new owners?

No, the standard practice is for the Buyer to cover these costs.

• Do I have to pay taxes on Capital Gains in relation to the sale of my property?

It depends on the sales value and the length of time that you have held the property in your name. (Please see attached explanation on this subject)

• What other fees do I pay?

As the seller you only pay the Real Estate commission and if applicable Capital Gains.

• As a non-Mexican citizen, can I purchase property in Mexico?

Yes, however you must use a bank trust if you wish to purchase any property within the “Restricted Zone”: 100 KMS (62 miles) from the border, or 50 KMS (31 miles from the coast). There is no need for a bank trust when buying property outside the “Restricted Zone”. The only requirement, is a prior permit issued on your behalf by the Federal Government.

• What is a “Property” Bank Trust” (Fideicomiso)?

Since you cannot directly own property within the Restricted Zone area mentioned above, you must appoint a Mexican bank of your choice, to act as “Trustee” for the property you are buying.

• Will the property be in my name while held in a trust?

No. It will be in the bank’s name, but held in a trust issued in your name.

• What is a “Notario Publico”? (Notary)

A “Notario Publico” is a lawyer, authorized by the state government to act in all legal manners pertaining to all closing or sales of Real Estate property. They collect the taxes due on the sale of the property, certifying all legal documents etc.

• Does this mean that in order for me to purchase or sell any property in Mexico, I must first contract the services of a “Notario”?

YES. However, your Lloyd Real Estate Agent can help you choose a Notario. If you are the buyer the Notario will ascertain that the property you are purchasing is free from any encumbrances. (Including Taxes due) Also, he will issues the corresponding property title and register the property in the Public Register’s office.

• Do I have to pay Mexican Federal Taxes when purchasing a property?

Yes, you will have to pay the Transfer Tax (2%) of the appraised value. This will be included in the Notary’s fees. Also if you have set up a bank trust, the bank selected will charge certain annual fees to administer your trust.