Payments to RE Agent

[Landshark]

This would leave the last buyers to pay all the capitol gains, which is great for the seller but not the buyer.

Nice publication by Arizona Department of Real Estate "Buying Real Estate in Mexico"
http://www.re.state.az.us/PublicInfo/Documents/Consumer_Guide_MEX.pdf
It appears an Arizona LLC member selling fractional ownership of their "share" of an LLC owned
property in Mexico is subject to the 30% income tax within 30 days.
Page 15, Number 3.
Buying the Membership Interest of a U.S. Entity. Selling a LLC, or any other foreign
entity, (whose assets are comprised in more than 50% by Mexican real estate) to a foreign buyer,
in another country, is in fact a transaction that is taxable in Mexico at the current tax rate of 30%.
Related thereto, the private assignment of promissory rights, not done through a notary and
usually involving an irrevocable power of attorney, is also a transaction subject to income tax in
Mexico, at the 30% rate. Both of these transactions raise two main issues: (a) the buyer will have a
lower base for a future sale of the property; and (b) the seller, as an individual, is obligated to pay
the 30% income tax, within 30 days, to the Mexican government. Buyers should carefully evaluate
with Mexican counsel and their counsel “back home”, the legal and tax implications, and, get
some type of guarantee that taxes will be paid.

 

[Terry C]

Interesting, i seen where an agent in Mexcio said, with an LLC you avoid capitol gains in Mexico. " NOT "
Or was it, you save on not having to do a trust transfer? $$$$$$

 

[PintoPoint]

Interesting, i seen where an agent in Mexcio said, with an LLC you avoid capitol gains in Mexico. " NOT "
Or was it, you save on not having to do a trust transfer? $$$$$$

There was so much I didn't know when I bought my property. It cost me a lot more than I expected and took a lot longer. If I had been told the whole story I my not have purchased.

 

[PintoPoint]

Another thing I missed was if you are building you need to keep good records and get facturas for all purchases. If you manifest your build you can reduce the cost of your capital gains when you sell.

 

[wendell]

If you are building I would also recommend paying all Soc Sec taxes on the workers for your home directly. the builder can give you the invoice for that. If the builder does not pay these and skips out or goes out of business, the homeowner is ultimately responsible for the employment taxes