Legal precedent
Acquisition by foreigners of real estate located in Mexico within the 100-kilometer zone from the border and the band width of 50 kilometers along the coast, should be done under contract to a trust pursuant to the Law on Foreign Investment. " Through this agreement the owners acquired the rights to use and dispose of property located in specified zones.
CHARACTERISTICS OF THE CONTRACT TO A trust
Only banking institutions that have received permission from the Mexican federal government, have the right to implement transactions involving the transfer in trust.
In this type of contract, the seller or the builder (original owner), acting as trustee, conveys a banking institution (trustee) ownership of the property, receiving from the foreign buyer (the trustee or beneficiary) the amount paid as its price.
This contract shall set forth all the rights to use and dispose of real estate trustee or beneficiary. Thus, a trusted (financial institution) retains only nominal ownership of assets pursuant to the provisions of the 27th article of Mexican constitution.
REQUIREMENTS FOR THE SIGNING OF THE AGREEMENT
Requires the following information and documentation:
Photocopy documents for the ownership, receipt of property tax and the drawing area.
Name, address, nationality, the seller (the principal).
Name, address, nationality, occupation and telephone number of the foreign investor (the trustee). The same information is required and the persons whom he wishes to designate as beneficiaries in the event of his death.
Foreign investor and its beneficiaries do not need special immigration status for the registration of the contract.
The price and the seller agree to the depositor.
If there is described a trusted information requests the Secretariat of Foreign Affairs for permission to enter into a contract to a trust.
The permit is issued for a period of 50 years, with possibility of renewal for the next 50 and so on. Banking institution acting as trustee, assumes responsibility for timely notification of Trustees and appropriate action on the extension.
Upon receipt of this authorization, the authorized notary sends it along with the contract for the transfer in trust, so that the notary could start its execution and legalization through a notarial deed.
Public Notaries in Mexico have more authority and responsibility than, for example, notaries in the United States of America. Under the law, they must be lawyers with the accreditation of the State Government to implement its activities. The duties of notaries public include:
* Verify that the property, which is the subject of the contract is free of obligations, including mortgage;
* Make sure that the acts and contracts concluded in their presence, meet all requirements set forth in the municipal, regional and federal legislation, as well as payment of taxes related to operations;
* Registered in the inventory of real estate contract for the transfer to the trust property.After a lawyer presenting the trustee document authorizing trust.
If the trustee can not attend the signing of the treaty, it can happen whenever the official power of attorney, which may be issued including the name of a banking institution.
 Additional costs trustee's fee (bank)
Fees or royalties, which are a trusted takes for this kind of contract of trust property depends on the bank designated as a trustee, in an approximate sense we can speak about the following amounts:
* At the time of the conclusion: for the discovery, taking responsibility for the maintenance and signing of the treaty as a trustee of approximately 600.00 U.S. dollars. This amount is payable only once when signing the notary deed trust deed.
* Year: commission fees for the bearing the title of ownership in the amount of 800.00 U.S. dollars a year. These fees are paid in advance.
To end up fee trusted VAT (Value Added Tax) at 15% serving in Campeche. Each year, the day of signing the contract trusts, trusted sends at the trustee notice of charging these fees for doing business.
Costs and taxes at the time of contract execution trust
In addition to the costs described above, for the discovery and acceptance of obligations authorized to be required for the following:
* Fees and expenses for the notary's registration of the contract confidential property: approximately 1% of transaction value.
* Fee for entry in the inventory of property, 1% of the cost of operation, determined at the time of writing.
* The tax on change of ownership when purchasing an asset, 2% of transaction value. However, if the object of Campeche Beach authorities have to reduce the tax to 0.5% for the first buyers.
* You must also pay a one-time right to obtain permission from the Secretariat of Foreign Affairs and entry into a national registry of foreign investments, amounting to approximately 1.500,00 U.S. dollars.
 Expenditure on the Estate Property Tax: Payable annually in the municipality of Champoton (where the project is implemented) and the annual rate of 0.12% on the cost listed on the inventory.
* Contribution to service a condominium. This contributed to the community of owners.
* Utilities (electricity, water, etc.)
* Fees authorized for annual maintenance contract of trust property.
Banks. Credits. The rate of Libor + 2%
Up to 70% of the cost
Up to 20 years
Secured by the acquired property
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Buying property - Mexico