FM3...again...sorry!!

Again - sorry - but if you buy or lease property in Mexico, a FM3 of FM2 is required. You have to have one to buy from a reputable seller and get the proper paperwork done thru a Notario.

I am so-o-o confused!! We are (we are told!!) using a "reputable" notario and we have not been told that we NEED to get an FM3!!!

Here is a site in english that has good info. They will also answer specific questions via Email.

http://www.ajijiclaw.com/

The american developments in this area require FM3/2 before they will transfer property .

Thanks for that Bajalou...
After reading that...it still doesn't say that I have to get an FM3. And in our situation, since we will be driving down in 2007, probably wanting to bring more stuff than we can when we fly, it seems that it would be wise NOT to get it as if we do we only have 6 mths to get our "stuff" down. Does that sound right?? The other thing it mentions is that you should have an FM3 to prevent having to pay capital gains tax...the people we are buying from do have a FM3 but are still paying capital gains

Mexican Real Estate & Visas...

I've heard lots of conflicting information regarding this one, and I'd like to try to answer this as best as I can.

First off, let me say that while I am not licensed as a Realtor in BCS, (There is no licensing body.) I do have a background as a Realtor in the US.

Before buying my own property in Mexico, I spent a year or so of my spare time trying to learn as much as I could about the buying & selling process as it applies specifically to Americans buying property within BCS.

When I found the property I wanted, I negotiated directly with the Seller, and we handled all of the Contract and legal details by hiring a Notario who had done a Subdivision and several Purchase & Sales for the Seller I was buying from.
NOTE: I would NOT suggest this approach to anyone! I did not have any problems, but there were many different things which could have happened to sour my deal. An established Realtor who serves the particular area you're interested in is a MUST if you're worried about your investment at all.

This is from the Mexican Consul's website. The office which puts it out is in Sacramento, CA, and they've got a very helpful staff who you can speak with if you need further assistance:

(From the section entitled
ACQUISITION OF REAL ESTATE IN MEXICO
"...subject to the condition that these foreigners agree before the Ministry of Foreign Relations to consider themselves as Mexican nationals regarding the acquired property and not to invoke the protection of their country of origin with respect to the same. If the convenant is breached, all rights to such property shall be reverted to the Nation."
-AND-
"..The acquisition of real estate must be conducted before a public notary, judge or property registrar officer and two witnesses when its value does not exceed the equivalent of 365 times the daily minimum wage. For higher values the transaction must be conducted by a Public Notary and registered in a deed. The parties should pay taxes in a real estate purchase.
The acquisition may be done personally or through an agent with representation (power of attorney valid according to Mexican laws)...".

-Here's the Kicker:-
"...Even if there is no restriction for any migrant status to acquire property except by transmigrates after buying property of getting rights to a property in the "restricted zone," foreigners are compelled to get a visitors visa...".
"...This will be an agreement to be considered as a Mexican citizen in connection with the property, meaning that diplomatic protection from a foreign government will not be invoked, and that that the alien will submit to the jurisdiction of the Mexican courts in all cases, under the penalty of losing said property...".

The meat of it is that a Visa is NOT REQUIRED in order to execute a legal Contract in Mexico for the purpose of buying (or in the case of a Fideicomiso) or renting Real Property.
You DO need a Visa to be in BCS physically of course, (Your Tourist Card) and in order to provide the greatest measure of protection (as a Foreigner) of your Property Rights under Mexican law, it is imperative that you apply for your Visa asap. However, it is NOT required.

If I were working as a Realtor in BCS, I would counsel all of my Clients to obtain their Visas asap for the simple reason that it affords you the same protections that a Mexican Citizen should have in the event of a legal problem.

RE: Capital Gains Tax liability - Every situation is different, but you are subject to a Capital Gains Tax in Mexico under certain circumstances. Taxes paid in Mexico may also count towards your US tax liability in certain cases, and you are allowed to make a pretty substantial amount of $$$ annually without ANY US tax liability if you meet certain criteria.
If you are building a new home, certain steps can and should be taken to minimize your liability. In particular, manifesting your costs to provide a future record and Basis for taxation is a HUGE money saver. There are a few dozen CPA's and Tax Attorneys in BCS who specialize in tax planning for expats, and I'd suggest you contact one of them for further info specific to your case.

WOW! That's a lot of writing! I hope I haven't added to your confusion, and if there's one thing you should take from this, it's to secure competent professional assistance (after checking references) before plunging ahead armed only with anecdotal information.
Buena suerte! Cameron
Here's the web address for the Mexican Consul:
http://www.consulmexsacramento.com/preguntasfrecuentes_eng.h...

FM 3

Just In Case There's Any Confusion...

I Just Thought Of Something...

FM-3

I know at least a couple of you guys have FM-2 rather than Fm-3. What is the advantage to us getting the FM-2 over the FM-3? We are due to get a NEw Fm-? this year as our 5 years are up. Trying to decided the pros & cons of it?
Thanks
Meme

From what imigration has told me -- Short answer -- Pros- after 5 years no more renewals. Receive premenant residency with more rights but not citizenship.

Cons- Costs more, can not be out of Mex more than 18 months in the 5 years

Long answer, - come on over and we'll talk about it.

fm3